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1 – 10 of 409Abdullah Murrar, Veronica Paz, Madan Batra and David Yerger
Several studies have examined the relationship between service quality and willingness to pay in many industries. However, this relationship has not been explored through the lens…
Abstract
Purpose
Several studies have examined the relationship between service quality and willingness to pay in many industries. However, this relationship has not been explored through the lens of customer perceived value and their willingness to pay for improving and sustaining water service. This study aims to examine the impact of technical and functional service quality dimensions on customer perceived value and assess the influence of customer perceived value and socio-economic factors on customers' willingness to pay for improving and sustaining the water service.
Design/methodology/approach
Technical service quality includes core water service such as water delivery and maintenance, while functional service quality refers to the appearance of facilities, employees’ dress, and communication. SERVQUAL questionnaire responses were collected from 333 Palestinian household customers. Cronbach’s alpha was conducted to measure internal consistency and convergent validity. Path analysis was utilized to evaluate a causal diagram by examining the relationships among the constructs.
Findings
The results showed that technical and functional service quality and relative price explain 52% of the customer perceived value variation. Additionally, the results revealed that customer perceived value, technical service quality, and relative price significantly impact the customer’s willingness to pay for improving and sustaining service. In contrast, the functional service quality and socio-economic factors have insignificant effects. These predictors explain 60% of the customer’s willingness to pay for improving and sustaining service.
Practical implications
The study suggests that water providers should prioritize improving and sustaining technical service quality to increase customer willingness to pay. Furthermore, they should be aware that other factors, such as employee appearance and politeness, are less influential in driving customers’ willingness to pay.
Originality/value
The study presents a water service improvement model that utilizes data from a developing country to assess the influence of perceived customer value, along with its dimensions, on the willingness to pay for improving and sustaining water service quality.
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Rebecca Nana Yaa Ayifah and Adriana Apawo Adda
The rapid growth of the mobile money industry has been matched by a rise in mobile money fraud. The technology required to apprehend perpetrators of such fraud is nonexistent in…
Abstract
Purpose
The rapid growth of the mobile money industry has been matched by a rise in mobile money fraud. The technology required to apprehend perpetrators of such fraud is nonexistent in most developing countries. Hence, the need for individuals to be willing to pay for insurance against such frauds is crucial. This paper aims to examine individuals’ willingness to pay for insurance against mobile money fraud in Ghana.
Design/methodology/approach
The paper uses nationally representative data collected from 4,266 adults (persons 18 years and above) in Ghana. Individuals’ willingness to pay premiums for protection against mobile money fraud was elicited by a single-bound dichotomous choice and open-ended contingent valuation designs.
Findings
On average, 24.34% of Ghanaians are willing to pay premiums for insurance against mobile money frauds, with more men (26.37%) being willing than women (22.56%). Similarly, the average monthly premium that men are willing to pay for protection against mobile money fraud is GH¢32.16 (US$8.16), while that of women is GH¢22.5 (US$5.62). Furthermore, the results show that years of schooling, income, previous fraud experience, and using the accounts for saving are all positively associated with willingness to pay. However, using other networks apart from MTN has a negative association with willingness to pay.
Originality/value
To the best of our knowledge, this is the first study that examines willingness to pay for insurance against mobile money fraud. Thus, this is the first that estimate quantitatively how much mobile account holders will pay as premiums for insurance against mobile money fraud.
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Ching Yin Ip and Chaoyun Liang
The present study surveyed consumers in Taiwan and Japan to analyse the influence of marketing mix on purchase intention and the willingness to pay for Taiwanese pork and to…
Abstract
Purpose
The present study surveyed consumers in Taiwan and Japan to analyse the influence of marketing mix on purchase intention and the willingness to pay for Taiwanese pork and to establish a marketing-oriented model of consumer behaviour.
Design/methodology/approach
A total of 1,134 valid Internet surveys were collected, which included 526 Taiwanese respondents and 608 Japanese respondents.
Findings
An analysis of the results indicated that product quality constitutes the foundation of marketing strategies and significantly affects purchase intention and willingness to pay through physical evidence, promotional activities, place and price. Both physical evidence and product strongly affect the purchase intention of Taiwanese consumers, followed by price, whereas price and physical evidence significantly affect willingness to pay. For Japanese consumers, price, product and promotion strongly affect purchase intention, but place and physical evidence exert negative effects; by contrast, price and promotion significantly affect willingness to pay.
Originality/value
The results determined that a modified marketing mix should be applied for agricultural products. In the domestic market, marketing should promote the modernisation and scale of pork farms and possibly the brand value or market rarity. In international markets, particularly those of neighbouring countries, marketing should focus on the promotion of Taiwanese pork as a high-quality, reasonably-priced product with transparent product information and convenient purchase channels. This study contributes to the application of marketing theory to the market for staple foods by incorporating considerations for domestic and international markets.
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Mario Becerra, Matteo Balliauw, Peter Goos, Bruno De Borger, Benjamin Huyghe and Thomas Truyts
Ticket sales are an essential source of income for football clubs and federations. Analyzing the determinants of fans' willingness-to-pay for tickets is therefore an important…
Abstract
Purpose
Ticket sales are an essential source of income for football clubs and federations. Analyzing the determinants of fans' willingness-to-pay for tickets is therefore an important exercise. By knowing the match- and fan-related characteristics that influence how much a fan wants to pay for a ticket, as well as to what extent, football clubs and federations can modify their ticket offering and targeting in order to optimize this revenue stream.
Design/methodology/approach
Using a detailed discrete choice experiment, based on McFadden's random utility theory, this paper formulates a Bayesian hierarchical multinomial logit model. Such models are very common in the discrete choice modeling literature. The analysis identifies to what extent match and personal attributes influence fans' willingness-to-pay for games of the Belgian men's and women's football national teams.
Findings
The results show that the strength of the opponent, the type of competition, the location of the seats in the stadium, the day and kick-off time of the match and the ticket price exert an influence on the choice of the respondent. Fans are attracted most by competitive games against strong opponents. They prefer to sit along the sideline, and they have clear preferences for specific kick-off days and times. The authors also find substantial variation between socio-demographic groups, defined in terms of factors such as age, gender and family composition.
Practical implications
The authors use the results to estimate the willingness-to-pay for match tickets for different socio-demographic groups. Their findings are useful for football clubs and federations interested in optimizing the prices of their match tickets.
Originality/value
To the best of the authors' knowledge, no stated preference methods, such as discrete choice analysis, have been used to analyze the willingness-to-pay of sports fans. The advantage of discrete choice analysis is that options and variations in tickets that are not yet available in practice can be studied, allowing football organizations to increase revenues from new ticketing instruments.
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Anqi (Angie) Luo, Donna L. Quadri-Felitti and Anna S. Mattila
A visual sweetness scale with an arrow pointing to a specific sweetness level is now required on all labels of AOC Alsace. The sweetness scale makes it easier for consumers to…
Abstract
Purpose
A visual sweetness scale with an arrow pointing to a specific sweetness level is now required on all labels of AOC Alsace. The sweetness scale makes it easier for consumers to understand what is in the bottle. What is less clear, however, is whether such labeling is always effective. To fill this gap, the current research paper aims to examine the positive and negative effects (double-edged effects) of a visual sweetness scale and identify the boundary condition.
Design/methodology/approach
Two studies were conducted using a 2 (cue type: scale vs text) by 2 (consumer type: novices vs experienced wine consumers) between-subjects, quasi-experimental design.
Findings
The double-edged effects are only significant among wine novices. Specifically, though wine novices are more likely to purchase wine with a sweetness scale (vs text) due to perceived diagnosticity (Study 1), they are unwilling to pay more due to low perceived quality (Study 2).
Practical implications
The study findings provide practical implications for wine producers, marketers and restaurants regarding when and how to use the sweetness scale on wine labels and wine service.
Originality/value
To the best of the authors’ knowledge, this research is the first to reveal the impact of visualizing wine style on wine labels. More importantly, while most previous research demonstrates the positive effects of using visual cues, this research sheds light on its drawbacks and examines the underlying mechanisms.
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Ganesh Thapa, Yam Kanta Gaihre and Dyutiman Choudhary
The purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.
Abstract
Purpose
The purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.
Design/methodology/approach
We surveyed 619 households from six districts and assessed farmers’ WTP for urea, diammonium phosphate (DAP) and muriate of potash (MOP) during the fertilizer crisis. Our study elicited the WTP for fertilizers when fertilizers were not available on the market. A modified payment card approach was used to elicit farmers’ WTP.
Findings
The study found that farmers who buy fertilizer from agrodealers, buy from gray markets, have bank accounts, are willing to take a risk, have strong or medium economic conditions and incur higher travel costs have a higher WTP for fertilizers. Farmers in sampled areas, on average, are willing to pay 31 percent more for urea, 13 percent more for DAP and 19 percent more for MOP than the government recommended fertilizer price.
Research limitations/implications
The design of the payment card and the estimation techniques used to fit the valuation function are likely to influence WTP.
Originality/value
Overall, literature on households’ WTP for fertilizers in developing countries is scarce. Our study contributes to the knowledge of WTP for fertilizers.
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This study evaluated the effects of adherence to social missions and relational outcomes on willingness to pay for products from social enterprises.
Abstract
Purpose
This study evaluated the effects of adherence to social missions and relational outcomes on willingness to pay for products from social enterprises.
Design/methodology/approach
The study’s conceptual model was based on the social resource–based view. Three social enterprises in Taiwan were analysed, and the determinants of willingness to pay for products from these enterprises were investigated. An online survey was conducted, and 404 valid responses were collected and analysed using structural equation modelling. The moderating effect of sustainability orientation was evaluated using the multigroup method.
Findings
The results indicated that adherence to social missions was a critical predictor of relational outcomes and willingness to pay. In addition, sustainability orientation positively moderated the effect of relational outcomes on willingness to pay.
Originality/value
This study enriches the literature by applying the social resource–based view to the context of social enterprises. The study findings have key implications for managers and practitioners of social enterprises seeking to build relationships with stakeholders.
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Sarah Kühl, Aurelia Schütz and Gesa Busch
The use of multi-level labels can enhance product visibility by enabling labeling of various items. Moreover, it can better accommodate the diversity on both the producer and…
Abstract
Purpose
The use of multi-level labels can enhance product visibility by enabling labeling of various items. Moreover, it can better accommodate the diversity on both the producer and consumer sides. However, studies on the willingness to pay (WTP) for premium levels of those animal welfare labels are scarce.
Design/methodology/approach
We investigate consumers’ WTP for a four-level animal husbandry label introduced to the market by German retailers in 2019 by conducting an online survey with 1,223 German meat consumers using Van Westendorp’s price sensitivity meter (PSM).
Findings
There is a significant increase in WTP for level 3 of the husbandry label, but only a slight increase for level 4. One explanation is that consumers may have the mistaken belief that level 3 already includes outdoor access for animals. As a result of this expectation, consumers may not perceive much added value in level 4, which is reflected in their reluctance to pay a higher price. This is reinforced by the finding that once informed of the criteria, 18% of the participants reduced their WTP for level 3, whereas only 6% considered a discount for level 4. Furthermore, 40% were prepared to pay more for level 4 after being informed of the respective criteria than they had previously stated.
Originality/value
To the best of our knowledge, this study is the first to analyze and emphasize the importance of clear label communication, particularly for multi-level animal husbandry labels.
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Kenneth Fu Xian Ho, Fang Liu and Liudmila Tarabashkina
The effects of country-of-origin (COO) cues on product evaluations are well documented. However, research on the relative effects of COO compared to other geographical indicators…
Abstract
Purpose
The effects of country-of-origin (COO) cues on product evaluations are well documented. However, research on the relative effects of COO compared to other geographical indicators, such as region-of-origin (ROO), on food purchases is still limited. This study investigates how geographical origin labels influence consumers' perceptions of product value and authenticity of foreign food, as well as subsequent purchase intention (PI) and willingness to pay premium prices (WTPPP). The moderating role of health consciousness on these relationships is also examined due to the coronavirus disease 2019 (COVID-19) pandemic.
Design/methodology/approach
This study uses a between-subjects experimental design conducted with 300 middle- and high-income Chinese consumers aged between 25 and 50 years. Hypotheses were tested using structural equation modelling.
Findings
Whilst under both COO and ROO cues, all five product values positively influenced consumers' WTPPP, only functional, economic and novelty values influenced PI. The ROO cue performed significantly better than the COO cue in eliciting functional, economic and novelty value perceptions, which triggered stronger PI and willingness to pay a premium price. These relationships were mediated by product authenticity (PA) and moderated by consumers' health consciousness (HC).
Practical implications
Because food labels provide salient product information that facilitates consumers' evaluation of products, marketers should assess which product value perceptions they wish to enhance and then choose the appropriate geographical indicators for their labelling strategies.
Originality/value
This study identifies the effects of COO and ROO cues on product values, authenticity, PI and WTPPP. It also provides valuable insights into the role of HC on consumers' purchase decisions, which also aids in understanding the impact of global crises on food purchases.
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Ismael Castillo-Ortiz, Minwoo Lee, Scott Taylor and Diego Bufquin
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion…
Abstract
Purpose
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion to increase craft beer sales and contribute to faster growth.
Design/methodology/approach
This is a conjoint analysis with a selection of attributes for new or renewed products, marginal disposition to pay for particular characteristics through brand-specific choice-based design, and market simulation.
Findings
This paper clearly demonstrates consumers’ preferences and willingness to pay in Mexico, with a cutting-edge market research technique combining the prioritization of preferred craft beer characteristics, and the price consumers are willing to pay for such product characteristics.
Research limitations/implications
The study's sample size of 501 responses is relatively small compared to the total number of craft beer consumers in Mexico. To enhance the validity and reliability of the findings, future studies should aim to obtain larger samples and compare their results with those of this study.
Practical implications
This study has important implications for craft beer producers, allowing them to develop targeted craft beers with appealing attributes for Mexican consumers, such as color, aroma intensity, alcohol degree intensity, bitterness, foam level and price.
Social implications
This study's market forecasting simulation technique is based on assumptions of consumer behavior and market dynamics. Although relevant variables were considered, unanticipated external factors or market changes could impact the forecasts' accuracy. This will allow for a more comprehensive understanding of craft beer consumer preferences in different markets and enhance the reliability of forecasting techniques.
Originality/value
This paper informs craft beer producers by providing valuable knowledge on customers’ preferences and willingness to pay to enhance craft beer companies’ product development processes.
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