Advance selling of services and pricing policy

The phenomenon of suppliers offering favourable conditions to customers who purchase in advance is becoming increasingly frequent in service management. This type of practice is known as “advance selling”, and the term is used to define a situation where the customer purchases a service before they actually intend to use it. In exchange for the commitment of buying in advance, the purchaser is offered a number of benefits, such as price discounts. The aim of this paper is to draw attention to a phenomenon(advance selling) that has become very popular with businesses but has still not been extensively analysed in economics and management literature, especially related to pricing and branding policy.