scholarly journals Effect of Price-discount Distribution in Multi-unit Price Promotions on Consumers’ Willingness to Pay, Sales Value, and Retailers’ Revenue

Agribusiness ◽  
2014 ◽  
Vol 31 (1) ◽  
pp. 14-32 ◽  
Author(s):  
Faical Akaichi ◽  
Rodolfo M. Nayga ◽  
José M. Gil
Keyword(s):  
Willingness To Pay ◽  
Unit Price ◽  
Price Discount ◽  
Price Promotions

scholarly journals IS THERE A MARKET FOR BRANDED GULF OF MEXICO OYSTERS?

2017 ◽  
Vol 49 (1) ◽  
pp. 45-65 ◽  
Author(s):  
DANIEL R. PETROLIA ◽  
WILLIAM C. WALTON ◽  
LAURIANE YEHOUENOU
Keyword(s):  
Gulf Of Mexico ◽  
Willingness To Pay ◽  
Choice Experiment ◽  
Preference Heterogeneity ◽  
Price Premium ◽  
Significant Preference ◽  
Price Discount ◽  
Factors Influencing ◽  
Marginal Willingness To Pay

AbstractWe administered an online choice experiment to a sample of U.S. raw-oyster consumers to identify factors influencing preferences for Gulf of Mexico oysters, determined the extent of preference heterogeneity, and estimated marginal willingness to pay for specific varieties and other key attributes. Results indicate significant preference heterogeneity among select varieties, with non-Gulf respondents estimated to require a price discount on Gulf oyster varieties on the order of $3–$6/half dozen. Gulf respondents were found to be less sensitive to oyster variety, and estimated to be willing to pay a price premium only for select Gulf varieties on the order of $0–$3/half dozen.

scholarly journals Willingness to Pay for Biofuel Among Small-Scale Food Processors in Ibadan Metropolis, Nigeria

2020 ◽  
Vol 8 (7) ◽  
pp. 1426-1432
Author(s):  
Oluwakemi Adeola Obayelu ◽  
Aminat Olajumoke Jimoh ◽  
Foluso Temitope
Keyword(s):  
Willingness To Pay ◽  
Tertiary Education ◽  
Sampling Procedure ◽  
Green Energy ◽  
Household Size ◽  
Unit Price ◽  
Primary Data ◽  
Small Scale ◽  
Probit Regression ◽  
Energy Product

Cooking takes the largest percentage of energy consumption and most households still depend on wood fuel energy, which contributes significantly to global warming. However, a major consideration for market infiltration of a green energy product is the willingness of consumers to pay for it. The study examined the determinants of willingness to pay for biofuel among small-scale food sellers in Ibadan metropolis. Primary data were collected from one hundred and fifty-five small-scale food sellers in Ibadan metropolis using a multi-stage sampling procedure. Data were analysed using descriptive statistics and probit regression. The majority of the food sellers were female (91.0%) with less than five household members (65.8%) and had tertiary education (40.0%). Most of them were not aware of biofuel (82.6%) but were willing to substitute firewood for biofuel (78.1%). The probability of willingness to pay for biofuel was increased by household size, being a female but reduced by bid at the unit price of ₦500 per litre. However, it was reduced by household size and education at ₦600 per litre. Based on the findings of this study, the entrepreneurs should take advantage of the emerging biofuel market by creating awareness of green energy and its benefits among the citizenry while government should support its production so that it can be sold at affordable price.

Price promotions and products with low consumer ratings

2016 ◽  
Vol 33 (7) ◽  
pp. 517-527 ◽  
Author(s):  
Hsiao-Ching Kuo ◽  
Chinintorn Nakhata
Keyword(s):  
Negative Impact ◽  
Price Discount ◽  
Initial Attempt ◽  
Price Promotions ◽  
Content Type ◽  
Aversive Effect ◽  
Controllable Factors ◽  
Consumer Ratings ◽  
Price Bundling ◽  
Large Discount

Purpose Previous research indicates the aversive effect of low consumer ratings on consumers’ purchasing decisions. This paper aims to apply decision justifiability theory to investigate how price promotions – price discount and price bundling – can reduce this effect. Design/methodology/approach Two scenario-based experiments were administered among college students (Experiment 1) and online consumer panels (Experiment 2) to test the research hypotheses. Findings When time-to-purchase is long (vs short), a large discount is more effective in alleviating consumers’ negative responses toward products with low consumer ratings. However, when a price discount is presented as a bundle rather than a separate deal, a small discount size becomes as attractive as a large discount size for consumers with a longer time-to-purchase. Practical implications This paper identifies two controllable factors, price discounts and price bundling, that could help to alleviate the negative impact of low consumer ratings. Marketing managers can apply the findings of this paper as guidelines to deal with the aversive effect of low consumer ratings. Originality/value This paper makes an initial attempt to examine situations where consumers would be less averse to products with low consumer ratings. It identifies the roles of two price promotions (i.e. price discount size and price bundling) and an important contextual factor (i.e. time-to-purchase) that influence consumers’ decision justifiability and, subsequently, alter consumers’ online purchase decisions for such products.

scholarly journals Investigating Consumer Demand and Willingness to Pay for Fresh, Local, Organic, and “On-the-Stalk” Edamame

2021 ◽  
Vol 5 ◽  
Author(s):  
Nick Lord ◽  
Bo Zhang ◽  
Clinton L. Neill
Keyword(s):  
Willingness To Pay ◽  
Environmental Attitudes ◽  
Consumer Demand ◽  
Price Discount ◽  
Explanatory Variables ◽  
Elicitation Format ◽  
Shopping Location

Introduction of locally adapted, commercially viable edamame varieties can allow it to be marketed as fresh, local, organic, or on the stalk. Here, we utilized a one-and-one-half bounded (OOHB) elicitation format to estimate mean willingness to pay (WTP) for these external attributes in relation to a vector of explanatory variables. Results showed 84-, 85-, and 28-cent premiums for fresh, local, and organic edamame (10 oz). Pro-environmental attitudes drove WTP for all three of these attributes, while shopping location significantly increased mean WTP for fresh and organic attributes. A 40-cent price discount was observed for the “on-the-stalk” attribute, suggesting that convenience also plays an important role in marketing edamame. The results suggest that more research regarding edamame demand is warranted.

The impact of price promotions on checkout donations

2017 ◽  
Vol 26 (7) ◽  
pp. 734-749 ◽  
Author(s):  
Lan Xia ◽  
Nada Nasr Bechwati
Keyword(s):  
Spillover Effect ◽  
Unit Price ◽  
Moderating Effects ◽  
Price Promotions ◽  
Specific Product ◽  
Content Type ◽  
Product Categories ◽  
Price Discounts ◽  
Proposed Model ◽  
The Impact

Purpose This paper aims to present a model linking price promotions to checkout donations. It is argued that price promotions evoke two perceptions/emotions, namely, feelings of gratitude and perceived sacrifice of purchase, which consequently, influence the likelihood to donate. Feelings of gratitude dominate when the discount is high, while feelings of sacrifice dominate when the discount is low. Compared to no-discount situations, high discounts enhance consumers’ intention to donate while low discounts reduce this intention. Design/methodology/approach A total of four studies using shopping scenarios are conducted. Study 1 examines the main effect and the mediating factors. Study 2 replicates the findings in different product categories and at different unit-price levels. Studies 3 and 4 test the moderating effects of customer effort and discount framing. Findings Findings of the four studies provide support for the proposed model. Compared to no-discount situations, high discounts enhance consumers’ intention to donate, while low discounts reduce this intention. The effects are mediated by feelings of gratitude and sacrifice and moderated by effort obtaining the discount and format of the discount. Research limitations/implications Theoretically, this research advances the understanding of consumers’ interpretations of price promotions. All studies are conducted in an online context. Practical implications This research informs retailers and charity institutions on the best timing for soliciting checkout donations and indicates specific tactics to enhance consumers’ donations. Originality/value This is the first study linking price discounts to the growing phenomenon of checkout donations. The research is different from cause marketing where the donation is included in the price of a specific product. The work also differs from studies examining the spillover effect where additional purchases benefit the consumers instead of a cause.

Subjective Time Preference and Willingness to Pay for an Energy-Saving Durable Good

2001 ◽  
Vol 32 (3) ◽  
pp. 133-141 ◽  
Author(s):  
Gerrit Antonides ◽  
Sophia R. Wunderink
Keyword(s):  
Willingness To Pay ◽  
Energy Saving ◽  
Subjective Time ◽  
Durable Good ◽  
Discount Function ◽  
Hyperbolic Discount ◽  
The One ◽  
Two Parameter ◽  
Difference Effect ◽  
Better Than

Summary: Different shapes of individual subjective discount functions were compared using real measures of willingness to accept future monetary outcomes in an experiment. The two-parameter hyperbolic discount function described the data better than three alternative one-parameter discount functions. However, the hyperbolic discount functions did not explain the common difference effect better than the classical discount function. Discount functions were also estimated from survey data of Dutch households who reported their willingness to postpone positive and negative amounts. Future positive amounts were discounted more than future negative amounts and smaller amounts were discounted more than larger amounts. Furthermore, younger people discounted more than older people. Finally, discount functions were used in explaining consumers' willingness to pay for an energy-saving durable good. In this case, the two-parameter discount model could not be estimated and the one-parameter models did not differ significantly in explaining the data.

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