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The purpose of this chapter is to explore the differences in consumers’ willingness to pay for different types of design attributes due to different levels of specific anticipatory emotions evoked by them. The research aims to show how firms can benefit by leveraging the findings that different types of design attributes – that is, functionality, aesthetics, and environmental sustainability – affect profit margin per unit differently. Further, the chapter claims that design is a core competency that can pay dividends in terms of profit margins for firms. It is important for firms to develop expertise in understanding and leveraging relationships between the types of design attributes, specific emotions, and consumers’ willingness to pay.

The chapter uses the product categories of cell phones and laptop computers in the three experiments to test the hypothesized relationships between design attributes (functionality, aesthetics, and environmental sustainability), specific emotions, and willingness to pay.

The research finds that different attributes of design – functionality, aesthetics, and sustainability – evoke different types of emotions and different levels of willingness to pay.

The data were primarily collected via experiments in a behavioral laboratory.

Firms can leverage different attributes of design to position and price products according to emotional requirements of the target customer segment to match their willingness to pay and maximize profit margin per unit.

The research specifically measures willingness to pay in joint presentation – independent evaluation scenarios to assess differences in how functionality, aesthetics, and sustainability impact willingness to pay.

This study examines the impacts of three individual values on the willingness to pay and perceived fairness of use tax on Internet purchases. Analysis of survey data collected from 114 taxpayers reveals that while a strong sense of national identity is significantly correlated with fairness perceptions of use tax, it is not significantly related to perception of willingness to pay use tax. Our findings suggest that taxpayers with a high level of religiosity are more willing to pay use tax, although they do not perceive the use tax to be fair.

The chapter investigates: (1) Do married parents efficiently allocate time to children’s health care? (2) Are parents willing to sacrifice consumption for health improvements at an equal rate for all family members? (3) How does family structure affect health trade-offs parents make? (4) Are parental choices consistent with maximization of a single utility function?

A model is specified focusing on how parents allocate resources between consumption and goods that relieve acute illnesses for family members. Equivalent surplus functions measuring parental willingness to pay to relieve acute illnesses are estimated using data from a stated-preference survey.

Results provide limited support for the prediction that married parents allocate time to child health care according to comparative advantage. Valuations of avoided illness vary between family members and are inconsistent with the hypothesis that fathers’ and mothers’ choices reflect a common utility function.

Prior research on children’s health valuation has relied on a unitary framework that is rejected here. Valuation researchers have focused on allocation of resources between parents and children while ignoring allocation of resources among children, whereas results suggest significant heterogeneity in valuation of health of different types of children and of children in different types of households.

Results may provide a justification on efficiency grounds for policies to provide special protection for children’s health and suggest that benefit–cost analyses of policies affecting health should include separate estimates of the benefits of health improvements for children and adults.

Many companies produce environmentally friendly goods and offer their products with varied attractive marketing mix strategies. One of the company's potential target markets is millennials because the growing number of this community has become enormous. In terms of behavior, millennials have a high level of consumption compared to other generations. However, there are big questions about the willingness of millennials to consume green products. This study aims to acknowledge the green product buying behavior among millennials, especially premium green products. The variables expected to influence the millennial's willingness to pay premium include environmental concern, reference group, and pro-environmental attitude. Data collected through a survey of 250 respondents. The hypothesis framework was tested using PLS-SEM modeling to evaluate the measurement and structural models with the assistance of Warp PLS version 7.0. This study found that millennials who consider the importance of preserving the environment and have a reference group that solicitude to the environment will have a pro-environmental attitude and willing to buy the green product, even though it has a higher price. Green product's management can use the result to formulate an effective green marketing strategy to target the millennials. Regarding the need for millennials' environmental behavior clearer picture in a developing economy, the present study inflicts the literature by describing the antecedents of millennials' willingness to pay premium green products. The results also give practical implications by shedding light on millennials’ green behavior variables. It helps green entrepreneurs conceive their strategic marketing management, and thus can boost the green economy and economic growth.

One of the most contentious issues concerning benefit–cost analyses of environmental and other regulatory programs has been the valuation of reductions in mortality risks. The conceptual basis for most valuation exercises has been the value of a statistical life (VSL). However, despite decades of both theoretical and empirical research on the meaning and measurement of the VSL concept, there is no consensus concerning the validity of the results it produces in actual applications. In this paper, we review the development and application of the VSL approach and then propose what we believe to be a better way to value changes in mortality hazard.

This chapter reports estimates of consumers’ preferences for plans to improve food safety.

The plans are distinguished based on whether they address the ex ante risk of food borne illness or the ex post effects of the illness. They are also distinguished based on whether they focus on a public good – reducing risk of illness for all consumers or allowing individual households to reduce their private risks of contracting a food borne pathogen.

Based on a National Survey conducted in 2007 using the Knowledge Network internet panel, our findings indicate consumers favor ex ante risk reductions and are willing to pay approximately $250 annually to reduce the risk of food borne illness. Moreover, they prefer private to public approaches and would not support efforts to reduce the severity of cases of illness over risk reductions.

This study is the first research that allows a comparison of survey respondents’ choices between public and private mechanisms for ex ante risk reductions.

Experiential tourism has surged before the COVID-19 pandemic, and all signs are pointing out to a rapid increase postpandemic. However, it is no longer a question of whether to provide an experience or not, but rather which experience to provide. Travellers are demanding, and the forced pause in travel is fueling the concept of revenge travel but with consumers seeking unique experiences with nature as the center stage. The concept of glass igloo hotel (GIH) taps into the unique experience within a natural setting, offering guests the opportunity to reconnect with panoramic views of the natural surroundings. This research investigates consumers' willingness to pay (WTP) for such experience at a GIH. Results collected from 127 participants present hypothetical WTP which appears to be lower than actual rates published at some existing GIHs. Specific attributes sought after by guests in regards to the GIH experience were also investigated. The closeness to nature, view from the igloo, and proximity of the bathroom are particularly important. And while the igloo hotel experience offers the possibility to disconnect form the modern world, the availability of Wi-Fi was deemed important nevertheless. The research was conducted prior to the COVID-19 pandemic which may yet further influence the WTP for such an experience.

Sales and purchases of socially and environmentally responsible festival clothing are a way for festival attendees to engage in ethical consumption and for event organizers to undertake sustainable procurement. Although there have been a number of studies examining willingness-to-pay (WTP), few of them examine this in a festival setting, and there is a gap in existing research regarding the determination of actual behavior. The goal of this study is therefore to explore participants’ willingness-to-pay for apparel based on more external motivations (visible environmental messages) and then ascertain whether this behavior was actually replicated in a natural field setting. This study first collected surveys from 427 festival-goers in 2015, then used a natural field experiment in 2016 to investigate whether attendees at the Mariposa Folk Festival in Ontario, Canada, would actually be prepared to pay a premium for ethical festival T-shirts over a conventional alternative. The findings reveal that attendees not only showed a willingness-to-pay but they also did actually pay a premium for such T-shirts.

This study examined the factors influencing willingness-to-repurchase for each class of airline service, and integrate the constructs of service quality, satisfaction and willingness-to-repurchase which were rooted on Engel-Kollat-Blackwell (EKB) model. The study focuses on the domestic and international arrival of passengers at Murtala Muhammed International Airport in Lagos and Nnamdi Azikwe International Airport in Abuja. Information was gathered from domestic and foreign passengers who had post-purchase experience and had used the airline's services more than once. The survey data were obtained concurrently from arrival passengers at two major international airports using an electronic questionnaire through random and purposive sampling techniques. The data was analysed using the ordinal logit model and structural equation model. From the 606 respondents, 524 responses were received but 489 responses were valid for data analysis and reporting and were obtained mostly from economy and business class passengers. The study found that the quality of seat pitch, allowance of 30 kg luggage permission, availability of online check-in 24 hours before the departing flight, quality of space for legroom between seats, and the quality of seats that can be converted into a fully flatbed are the major service factors influencing willingness-to-repurchase economy and business class tickets. Also, it was found that passengers' willingness to repurchase is influenced majorly by service quality, but not necessarily influenced by satisfaction. These results reflect the passengers' consciousness of COVID-19 because the study was conducted during the heat of COVID-19 pandemic. Recommendations were suggested for airline management based on each class.

With continued growth in tourism, demand for guided local excursions, sightseeing, and entertainment has increased rapidly, particularly in European tourist destinations cities. Many touristic sights can often be viewed best from the water. Operators offer a variety of sightseeing cruises on motor barges along rivers, canals, lakefronts, or ports. In many tourist destination cities and around urban heritage sites, however, increasing boat traffic and the associated air pollution from diesel-powered engines have become a local environmental concern. Based on complaints from residents and visitors, several cities have already announced plans for (mandatory) tourist boat emission reductions. Today, electric mobility offers alternative options for safely and conveniently powering commercial tourist boats, that may contribute to mutually beneficial solutions for local operators, tourist visitors, and residents alike. However, the technology is still expensive and new businesses may also face considerable challenges when entering established local competitive tourism markets. Focusing on the local waterways of the city of Berlin, Germany, the authors have conducted a local case study, including interviews with several operators of (electric) tour boats, as well as an initial empirical survey of their tourist customers. The authors point out the viewpoints of the various stakeholders, identify opportunities, discuss constraints, and offer policy recommendations with a view to enhance the sustainability of waterborne transport in tourist destination cities.