Willingness to pay is very sensitive to framing effects. One of the most important framing effects is the pricing metric. B2B SaaS companies can realize orders of magnitude changes in willingness to pay by changing their pricing metric. Pricing metrics can also be a powerful way to differentiate.
Our recent research on how people price innovations found different pricing methods for sustaining versus disruptive innovators. Sustaining innovators tend to use value-based pricing. Disruptive innovators are more likely to price relative to the market alternative. We explore why this might be using the Clayton Christensen model of disruptive innovation.