The link between product demand and pricing magnitude is intuitive and a fundamental tenet of economics. Less intuitive, but also important, is the link between pricing policy, product consumption, and customer retention.
A 2002 Harvard Business Review article, by John Gourville and Dilip Soman, was recently forwarded to me by AI colleague and Wharton School professor, David Bell. Gourville and Soman highlight the link between pricing policy, consumption, and customer retention as borne out in the case of fitness club memberships.
Based on this article and case, the timing of payments can be shows to impact the consumption or use of a product or service, and the consumption / use of a product or service influences repeat purchase. Managers are advised to practice yield management, to stagger payments to smooth consumption habits where desired, and to psychologically tie payments to product benefits, in the interest of driving repeat purchase / customer retention.