Meaning and willingness to pay: the role of expectation disconfirmation

Abstract

Purpose

Pursuit of meaning is at the heart of much of organizational life. It has implications for how different organizational stakeholders associate value to various organizational initiatives. Research on meaning has generally shown that effort increases meaning and favorable valuation of and willingness to pay for economic activities by organizational stakeholders. The authors build on and advance this research by offering theory and experimental evidence showing that effort, particularly at high levels, results in enhanced meaning and favorable valuation when effort does not threaten the focal stakeholders' resources through expectation disconfirmation.

Design/methodology/approach

Three experimental studies are designed and conducted in this research. In one study, the authors replicate prior research findings that establish labor generally increases meaning and favorable valuation. In the two subsequent studies, the authors test the proposed hypothesis in this research and check for robustness of the empirical analysis.

Findings

The authors find that any internalized threat to the focal stakeholder's resources coupled with a high exertion of effort decreases, rather than increases, meaning and favorable valuation of and willingness to pay for economic activities.

Originality/value

The theory and empirical evidence in this research advance the understanding of how organizational stakeholders may associate effort-induced meaning with various economic activities in counter-intuitive ways. The findings also highlight the importance of recognizing and shaping the expectations of organizational stakeholders in influencing willingness to pay in organizational settings.

Citation

Assadi, P. and Assadi, P. (2023), "Meaning and willingness to pay: the role of expectation disconfirmation", Journal of Economic and Administrative Sciences, Vol. 39 No. 4, pp. 1044-1062. https://doi.org/10.1108/JEAS-04-2021-0069