The Importance of Branding for Organizations: Decision Mechanism on Willingness to Pay a Price Premium for Branded Audit Services in Emerging Markets

2021 ◽  
pp. 287-313
Author(s):  
Marwan Ghaleb ◽  
Burçin Kaplan
Keyword(s):  
Willingness To Pay ◽  
Emerging Markets ◽  
Price Premium ◽  
Decision Mechanism

scholarly journals The Effects of Consideration of Future and Immediate Consequences on Willingness to Pay for Eco-Friendly Plant Attributes

2014 ◽  
Vol 32 (2) ◽  
pp. 64-70
Author(s):  
Hayk Khachatryan ◽  
Chengyan Yue ◽  
Ben Campbell ◽  
Bridget Behe ◽  
Charlie Hall
Keyword(s):  
Willingness To Pay ◽  
Ornamental Plants ◽  
Production Method ◽  
Price Premium ◽  
Production Methods ◽  
Consideration Of Future Consequences ◽  
Plant Attributes ◽  
Using Data ◽  
Future Consequences ◽  
The U.S

We investigated how differences in the consideration of future consequences (CFC) influence consumers' willingness to pay for edible and ornamental plants using data from plant auction experiments conducted in the U.S. and Canada. Specifically, the study focused on individuals' preferences for plant attributes related to production method, container type, and product origin. Individuals assigning higher importance to future consequences of their current decisions were willing to pay a price premium for plants grown using sustainable (16.7 cents) and energy-saving (16.5 cents) production methods, non-conventional containers such as compostable (18.2 cents) and plantable (14.3 cents), and locally produced plants (15.3 cents), and they expected a discount (37.8 cents) to purchase imported plants (i.e., produced outside the U.S.). In contrast, individuals assigning higher importance to immediate outcomes of their decisions were not willing to pay a price premium for the above mentioned attributes, with the exception of water-saving and compostable ones. The results contribute to our understanding of the effects of temporal considerations on choice decision making by horticultural consumers, and provide horticultural marketers with an opportunity to effectively position products that provide long- or short-term benefits.

scholarly journals Analysis of Consumer’s WTP for Cowpea Varieties in Osun State, Nigeria: the Hedonic Pricing Approach

2018 ◽  
Vol 6 (9) ◽  
pp. 1120 ◽  
Author(s):  
Rabirou Kassali ◽  
Abayomi Yusuf Oyewale ◽  
Olufemi Adedotun Yesufu
Keyword(s):  
Willingness To Pay ◽  
Consumer Preferences ◽  
Sampling Technique ◽  
Hedonic Pricing ◽  
Primary Data ◽  
Price Premium ◽  
Price Variation ◽  
Cowpea Varieties ◽  
Breeding Programmes ◽  
Almost All

Analysis of consumer preferences for cowpea varieties in Osun State was carried out with a view to identifying attributes that determine price variation among cowpea varieties and the effect on consumer’s willingness to pay for those varieties. A multistage sampling technique was used to randomly select 240 respondents for the study, comprising 180 cowpea consumers and 60 retailers. Primary data were collected on cowpea varieties, their attributes and the consumer’s willingness to pay for cowpea varieties using well structured questionnaire. Data collected were analysed using both descriptive and inferential statistics. The results showed that out of thirteen varieties found in the area, only nine varieties of cowpea were common in the market. The quality of each variety differs which explained variation in their price. In terms of preference the Oloyin variety is preferred most by 78% of consumers. Weevil resistance had the highest rank among the cowpea attributes. Oloyin had the highest WTP followed by Milk and Drum with ₦303, ₦237 and ₦213 per kg, respectively. Hedonic pricing methods provide a statistical estimate of premiums and discounts for cowpea attributes. Results indicated that weevil resistance was the most important attribute to consumer. Cowpeas with weevil damage tolerance, brown colour, large grain size and short cooking time commanded price premium for almost all the varieties. The consumer discounted prices for insect damage, small size, white colour, smooth skin and grain colour mixed together. The study concludes on the need for breeders and research institutes to incorporate these cowpea attributes that attracted price premium into their cowpea breeding programmes.

scholarly journals Residential Consumers’ Willingness to Pay Price Premium for Renewable Heat in South Korea

2019 ◽  
Vol 11 (5) ◽  
pp. 1234 ◽  
Author(s):  
Hee-Hoon Kim ◽  
Seul-Ye Lim ◽  
Seung-Hoon Yoo
Keyword(s):  
Renewable Energy ◽  
South Korea ◽  
Willingness To Pay ◽  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Fossil Fuels ◽  
Price Premium ◽  
Gas Emissions ◽  
Residential Heating ◽  
The Cost

Heat accounts for about one-third of the final energy use and it is mostly produced using fossil fuels in South Korea. Thus, heat production is an important source of greenhouse gas emissions. However, using renewable heat that is directly produced from renewable energy, such as bioenergy, geothermal, or solar heat can save energy and reduce greenhouse gas emissions, rather than transforming conventional fuel into heat. Therefore, an energy policy for renewable heat urgently needs to be established. It is such situations that this paper attempts to assess the consumers’ additional willingness to pay (WTP) or the price premium for renewable heat over heat that is produced from fossil fuels for residential heating. To that end, a nationwide contingent valuation survey of 1000 households was conducted during August 2018. Employing the model allowing for zero WTP values, the mean of the additional WTP or premium for one Gcal of heat produced using renewable energy rather than fossil fuels was estimated to be KRW 3636 (USD 3.2), which is statistically meaningful at the 1% level. This value represents the price premium for renewable heat over heat that is based on fossil fuels. Given that the heat price for residential heating was approximately KRW 73,000 (USD 65.1) per Gcal at the time of the survey, the additional WTP or the price premium corresponds to about 5% of that. When considering that the cost of producing renewable heat is still significantly higher than the cost of producing fossil fuels-based heat, more efforts to lower the production costs of renewable heat as well as financial support of the government for producing and supplying renewable heat are needed to ensure residential consumers’ acceptance of renewable heat.

B2B services: linking service loyalty and brand equity

2009 ◽  
Vol 23 (3) ◽  
pp. 175-186 ◽  
Author(s):  
Papassapa Rauyruen ◽  
Kenneth E. Miller ◽  
Markus Groth
Keyword(s):  
Theoretical Model ◽  
Willingness To Pay ◽  
Brand Equity ◽  
Purchase Intentions ◽  
Price Premium ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
Service Loyalty ◽  
The Relationship ◽  
Business To Business

PurposeA significant way of achieving high profitability is to retain existing customers who contribute to the service provider's revenue by continuously purchasing and paying more for products and services and building brand equity to the provider. The main objective of this study is to empirically examine and extend the knowledge underlying the linkage between service loyalty and brand equity performance outcomes in the context of business‐to‐business markets. It aims to develop and empirically test a theoretical model examining the antecedents and the outcomes of service loyalty in a business‐to‐business context. The model also aims to examine the relationship between service loyalty and customer share of wallet and price premium, as well as the links between the proposed antecedents (habitual buying, trust in the service provider, and perceived service quality) and service loyalty.Design/methodology/approachThe theoretical model was empirically tested with a sample of 294 Australian small‐ to medium‐sized enterprises (SMEs), using online and paper‐and‐pencil surveys. Respondents were owners of SMEs, financial controllers, and managers who are decision‐makers in the selection and use of courier service providers for their businesses.FindingsFindings provide support for the theoretical model in linking drivers of service loyalty with two types of loyalty, purchase intentions (i.e. behavioural loyalty) and attitudinal loyalty. Furthermore, the two types of loyalty are differential predictors of brand equity outcomes in that customer share of wallet is mainly driven by purchase intentions, whereas willingness to pay a price premium is mainly driven by attitudinal loyalty.Originality/valueThe paper examines the relationship between service loyalty and willingness to pay a price premium as one key indicator of brand equity.

Brand image and customers' willingness to pay a price premium for food brands

2014 ◽  
Vol 23 (2) ◽  
pp. 90-102 ◽  
Author(s):  
Johan Anselmsson ◽  
Niklas Vestman Bondesson ◽  
Ulf Johansson
Keyword(s):  
Willingness To Pay ◽  
Price Competition ◽  
Main Tool ◽  
Price Premium ◽  
Social Image ◽  
Content Type ◽  
Grocery Retailing ◽  
Packaged Food ◽  
Corporate Social ◽  
Practical Implications

Purpose – The aim is to understand customers' willingness, or unwillingness, to pay a price premium in the market for consumer packaged food and what kind of images brands can use in order to achieve a price premium. Design/methodology/approach – The study is based on a quantitative survey of brand images found in food and branding literature and their impact on loyalty as well as customers' willingness to pay a price premium for consumer packaged food. Findings – The survey shows that quality is a significant determinant of price premium, but adding other image dimensions doubles the predictability and understanding about price premium. The strongest determinants of price premium are social image, uniqueness and home country origin. Other significant determinants are corporate social responsibility (CSR) and awareness. Practical implications – The results help brand managers to recognise the importance of incorporating price premium and to develop a better understanding of what drives price premium in addition to more traditional dimensions as quality and loyalty. Originality/value – In grocery retailing, the competition for customers, margins and price premiums between manufacturer and private labels is fierce. Traditionally, the literature on this competition has focused on quality and product improvements as the main tool for creating distance to low priced competition. This study looks into other more branding related dimensions to distance from price competition.

scholarly journals Determining Consumer Perceptions of and Willingness to Pay for Appalachian Grass-Fed Beef: An Experimental Economics Approach

2011 ◽  
Vol 40 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Jason R. Evans ◽  
Gerard E. D'Souza ◽  
Alan Collins ◽  
Brown Cheryl ◽  
Mark Sperow
Keyword(s):  
Willingness To Pay ◽  
Experimental Economics ◽  
Consumer Preferences ◽  
Consumer Perceptions ◽  
Market Potential ◽  
Price Premium ◽  
Nutritional Content ◽  
Appalachian Region ◽  
Experimental Auction ◽  
Auction Mechanism

The focus of the current study was on the market potential for grass-fed beef in the Appalachian region, given that these products embody observed, experiential, nutritional, and process attributes that may appeal to a large consumer base. An in-store variant of the Becker-DeGroot-Marschack experimental auction mechanism was employed in the region to determine consumer preferences and willingness to pay. A majority of respondents preferred the grass-fed product over conventional grain-fed samples and were willing to pay a price premium to obtain it. Preferences for grass-fed were rooted largely in the associated superior nutritional content and core observed attributes.

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