The paper examines the suitability of pay-what-you-want (PWYW) pricing in introducing incremental or radical innovative products. Four experimental studies were conducted: three lab-based and one field-based. The results indicated that customers voluntarily made non-zero payments in anonymous exchanges. However, the payout in the lab (willingness to pay) and field (actual payout) studies were invariably lower than the externally provided price anchors. Further, low-price external anchors exerted a stronger influence on consumer payout than high-price external anchors. Message framing (descriptive versus injunctive) and external price anchors were used to nudge consumers toward a higher payout. The study found that customers’ payout was closer to the external price anchor when the anchor reflected what others paid (descriptive framing). In contrast, the payout deviated significantly below the price anchor when the seller suggested it (injunctive framing). Message framing was more effective in high external reference price anchors. Managers should choose high or low reference prices depending upon the deviation in actual payment from the external reference price anchor. Managers should introduce radically innovative products using descriptive framing and high-price anchors.