An innovative price-setting approach: a pay-what-you-want experiment

2020 ◽  
Vol 122 (8) ◽  
pp. 2481-2496
Author(s):  
Linda Bitsch ◽  
Jon Henrich Hanf ◽  
Jens Rüdiger
Keyword(s):  
Willingness To Pay ◽  
Strategic Decision ◽  
Price Setting ◽  
Target Groups ◽  
Content Type ◽  
Direct Sales ◽  
Gender And Age ◽  
Setting Approach ◽  
Pay What You Want ◽  
Agricultural Industries

PurposeDue to high competition in the agricultural industries and heterogeneous products, the setting of prices for direct sales to consumers is difficult. In recent years, pay-what-you-want (PWYW) is discussed as an innovative pricing strategy. This study analyses whether the implementation of a pay-what-you-want strategy can be successful and if there is a willingness to pay from the consumers for wine touristic offers. Furthermore, the study analyses, in general, how suitable experiments are as a research tool.Design/methodology/approachA PWYW mechanism creates a situation of strategic decision- making that can be modelled as a game. This can be transferred to an experimental setting. The results were analysed with a two-sided MWU test (Stata, ranksum) in order to determine whether the differences are statistically significant.FindingsParticipants pay positive prices, although theory predicts the opposite. PWYW is a good strategy to analyse the willingness-to-pay for heterogeneous and homogenous services or products. Information or reference prices have no clear influence on the willingness to pay, confirming results of other studies. There is no influence of gender and age on the payments.Practical implicationsIn general, consumers have a willingness to pay positive prices for wine- touristic offers. The willingness to pay is not different for people with or without wine knowledge. For the chosen variable information and reference price, wine producers do not have to address target groups differently.Originality/valueIt is the first study which analyses the pay-what-you-want mechanism as a tool for wine touristic activities. In addition, an experimental approach was used to analyse an innovative, consumer-based price-setting strategy.

Consumer-citizen willingness to pay for healthy eating messages

2019 ◽  
Vol 31 (2) ◽  
pp. 890-909 ◽  
Author(s):  
Yuxia Ouyang ◽  
Amit Sharma
Keyword(s):  
Willingness To Pay ◽  
Descriptive Analysis ◽  
Content Type ◽  
Health Warning ◽  
Warning Messages ◽  
Related Information ◽  
Warning Message ◽  
Home Context ◽  
Health Related ◽  
Amazon's Mechanical Turk

PurposeThe purpose of this study was to investigate the preference of health-warning message labeling in an eating-away-from-home context. The authors assessed individuals’ preference valuation of such messaging from a dual – consumer and citizen – perspective and with associated expected risk reduction (RR) level.Design/methodology/approachIn an online stated choice experiment on Amazon’s Mechanical Turk (N = 658), participants were asked to provide willingness to pay (WTP) preferences for health-warning messages and based on the expected RR from health-warning messages. Two types of multiple price list questions were used for consumer and citizen contexts. Interval regression and descriptive analysis methods were applied to analyze the data.FindingsThe study found that individuals placed a higher value (higher WTP) on health-warning message labeling when acting as citizens rather than as consumers. An RR expectation of 50 per cent was most effective in increasing participants’ WTP. Individuals who ate out frequently were more concerned about healthier food messages, and the influence of gender and age on WTP was conditional on individuals’ roles as consumers versus citizens.Originality/valueThis study extends the theory of consumer-citizen duality to the context of health-related information labeling, thus opening the discussion to extending such labeling from traditionally risky behavior such as alcohol and tobacco to also including food choice behavior. The authors also highlight implications on policy and industry practices to promote healthy food choices through such messages.

Antecedents and consequences of replacing international independent intermediaries

2014 ◽  
Vol 26 (3) ◽  
pp. 218-237
Author(s):  
Erik B. Nes
Keyword(s):  
Longitudinal Design ◽  
Operation Mode ◽  
Content Type ◽  
Performance Variables ◽  
Direct Sales ◽  
Home Based ◽  
Process Theories ◽  
Antecedents And Consequences ◽  
Communication Control ◽  
And Control

Purpose – What characterizes the relationships with intermediaries that are soon to be replaced, and are the replacements successful? The paper aims to discuss these issues. Design/methodology/approach – The study applies a longitudinal design. The paper conducted a survey among a sample of exporters concerning their relationships with independent intermediaries in terms of trust, commitment, communication, control and two performance variables; financial performance and strategic goal achievement. Five years thereafter the author contacted the same companies again and questioned which independent intermediaries had been replaced in the period. The author then compared the replaced intermediaries with the extended intermediaries before they were replaced and analysed changes in the evaluations of the relationships and of the performance after the replacement. Findings – The relationships with terminated intermediaries that were replaced by sales subsidiary or home-based direct sales were characterized having higher trust, communication and control than extended relationships before replacement. While it may be surprising that these quite successful relationships were terminated, this is in line with internationalization process theories. The replacements, both intermediaries that were replaced by other intermediaries and by sales subsidiary/home-based direct sales, were highly successful in terms of improvement in performance and behavioural relationship variables. Research limitations/implications – The empirical findings are limited by the sample and by data collection from the principal only in the dyadic relations. Practical implications – International independent intermediaries should analyse the likelihood of being replaced by the principal because the relationship or the performance is unsatisfactory, but also because of satisfactory evaluations. Terminations of satisfactory relationships tend to be accompanied by change in operation mode to internal organization. The independent intermediary should in such cases build a defence structure against unwanted termination and/or prepare for buyout. The success of the replacements suggests that international marketers benefit from being proactive in replacing intermediaries with new intermediaries or with a hierarchal entry mode. Originality/value – This is the first study that applies most of these variables from interorganizational relations theory in the study of international independent intermediary replacements. It is also the first to give insight into the consequences of intermediary terminations.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

Technology adoption and company performance

2018 ◽  
Vol 22 (2) ◽  
pp. 143-161
Author(s):  
Yeong-Wha Sawng ◽  
Yongjae Park ◽  
Seok-Hong Jo ◽  
Seung-Lak Park
Keyword(s):  
Performance Index ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Company Performance ◽  
Relative Importance ◽  
Smart Technology ◽  
Content Type ◽  
Internal Process ◽  
Smart Technologies ◽  
Interdisciplinary Study

Purpose The purpose of this paper is to provide useful implications for Korean export companies to adopt the smart technology to improve their performance in the era of industrial convergence with the interdisciplinary study between trade and technology management. Design/methodology/approach This study followed the five-stage procedure and methods. In the first stage, measurement items were developed in four performance factors: leaning and growth, internal process, customer and finance. In the second stage, data were collected by conducting two types of surveys: first, for Korean export companies that have adopted Radio frequency identification (RFID) to test the proposed model and analyze the performance and second, for RFID experts of industry-university R&D cooperation to measure the relative importance of factors and items. In the third stage, the model was verified with structural equation modeling. In the fourth stage, AHP was used to analyze the relative importance of factors and items. In the fifth stage, post-RFID adoption performance in Korean export companies was measured by a formula for the performance index. Through these five-stage procedure and methods, the final performance improvement strategies and practical implications are presented in the conclusion. Findings The framework finds that the total score of RFID post-adoption on company performance proved relatively low, which indicates that the effect of this technology on export companies’ performance is still unsatisfactory. And financial performance proved to be ‘top priority’ area, which requires the most urgent effort for improvement since its importance was higher than learning and growth, internal process and customer performance—but nonetheless its performance index was the lowest. This study finds that strategic decision making is required for adopting smart technology in the perspective of technology convergence to improve the performance of companies among heterogeneous industries. Research limitations/implications Despite the significant results of this study alone, it also has limitations. Therefore, the direction of the future study is as follows: future research should focus on finding specific impact factors enhancing post-adoption of smart technologies including RFID performance by conducting empirical studies that identify the factors affecting post adoption of smart technologies rate directly or indirectly. Originality/value In the current global market environment, not only technological convergence in the same kind of industry but also industrial convergence in the different kinds of industries are essential to manufacturing and service companies including to export companies with perspective of Innovation. This study has the value as an interdisciplinary study to actually measure the performance of a company by industrial convergence through the theme of adoption of smart technology in export companies.

Psychological influences on customer willingness to pay and choice in automated retail settings

2014 ◽  
Vol 29 (3/4) ◽  
pp. 237-260 ◽  
Author(s):  
Ashutosh Dixit ◽  
Kenneth D. Hall ◽  
Sujay Dutta
Keyword(s):  
Willingness To Pay ◽  
Dynamic Pricing ◽  
Price Change ◽  
Price Fairness ◽  
Content Type ◽  
Theoretical Contribution ◽  
Perceived Price ◽  
Quasi Experimental ◽  
Small Increments ◽  
Perceived Price Fairness

Purpose – The purpose of this paper is to investigate the influence of price attribute framing and factors such as urgency and perceived price fairness on customer willingness to pay (WTP) in automated retail settings. Design/methodology/approach – The authors conducted two sets of quasi-experimental scenarios surrounding vending-machine purchase decisions. The first set was analyzed with MANOVA, the second set with choice-based conjoint (CBC) analysis. Findings – When prices are framed positively (as a discount), customer WTP is higher at high published price levels than it is for unframed or negatively framed prices. The effect on WTP holds whether the reference price range is broad (few large increments) or narrow (numerous small increments). In the CBC scenarios, immediate availability of the product was most influential on choice, followed by price and brand effects. These findings held under conditions invoking both urgency and price fairness. Providing an explanation for higher prices increases perceived price fairness. Research limitations/implications – Further study might assess the presence or absence of interaction effects in the conjoint scenarios. Practical implications – Managers should consider transparency in dynamic pricing, particularly when the price change is outside the control of the firm. The conjoint scenario results also offer evidence that dynamic pricing will not impact other marketing-mix decisions for fast-moving consumer goods (FMCG) dramatically (availability at point of purchase and presence in the consumer consideration set remain strong influences on choice). Social implications – Understanding these effects on WTP could help managers manage perceptions of unfairness and optimize WTP. Originality/value – A theoretical contribution from this study is that the immediate loss/gain consideration under theories of decision making under uncertainty outweigh considerations such as scarcity urgency or perceived unfairness. Use of conjoint analysis in WTP research, study of dynamic pricing in FMCG setting.

scholarly journals Consumers’ willingness to pay for beef direct sales. A regional comparison across the Pyrenees

Appetite ◽  
2012 ◽  
Vol 58 (3) ◽  
pp. 1118-1127 ◽  
Author(s):  
Ana I. Sanjuán ◽  
Helena Resano ◽  
Gabriela Zeballos ◽  
Pierre Sans ◽  
Nuria Panella-Riera ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Regional Comparison ◽  
Direct Sales

Hijabista willingness to accept premium pricing: an analytical study of the effect of social and self-identity on hijab fashion brands satisfaction

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alshaimaa Bahgat Alanadoly ◽  
Suha Fouad Salem
Keyword(s):  
Willingness To Pay ◽  
Product Design ◽  
Consumer Satisfaction ◽  
Willingness To Accept ◽  
Fashion Industry ◽  
Content Type ◽  
Self Identity ◽  
Fashion Products ◽  
Practical Implications ◽  
Brand Satisfaction

Purpose This paper aims to study the predictors influencing hijabista satisfaction towards Hijab fashion brands and their willingness to pay premium pricing as fashion consumers. The effects of product design, product quality, social and self-identity have been studied in relation to product, and brand satisfaction is believed to have led to acceptance of premium pricing. Various factors have been studied and analysed to provide a better understanding of Hijab fashion consumer behaviour. Design/methodology/approach Data were collected by using online structured surveys distributed within the area of Shah Alam City in Malaysia. Convenience sampling was used in defining the 223 target respondents, and the collected data was analysed using Smart-PLS Software. Findings The results highlighted that product design has the largest influence on the willingness of hijabistas in paying premium prices, followed by products that reflect their social-identity while communicating their religious obligations and commitments. Communicating one’s self-identity was also found not to have a significant impact which relates to the importance of the religious and social commitments on hijabista purchasing choices rather than their own self-conceptual image. Practical implications This paper provides insights on the factors that affect hijabista satisfaction towards Hijab fashion products and brands. Conclusions provided are very relevant to the practices of the fashion industry, and in particular, for designers to understand the needs of this large and significant segment of the fashion market. Originality/value Hijab fashion is a growing segment in the fashion industry, and it has been gaining recent global attention. Designers need to be more aware of the requirements of this segment of the fashion market. This research focusses on Hijab consumer satisfaction and how this reflects their willingness to pay premium prices for chosen products and brands. Factors such as product design and quality, along with social and self-identity, were studied in connection with hijabista willingness to accept premium pricing. Such connections and terms have not been covered in previous literature.

Residents’ preferred measures and willingness-to-pay for improving urban air quality: A case study of Hanoi city, Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thanh Cong Nguyen ◽  
Hang Dieu Nguyen ◽  
Hoa Thu Le ◽  
Shinji Kaneko
Keyword(s):  
Air Pollution ◽  
Air Quality ◽  
Willingness To Pay ◽  
Public Transportation ◽  
Online Survey ◽  
Urban Air Quality ◽  
Multivariate Probit ◽  
Urban Air ◽  
Content Type ◽  
Public Opinions

PurposeThis purpose of this paper is to understand residents’ choice of preferred measures and their willingness-to-pay (WTP) for the measures to improve the air quality of Hanoi city.Design/methodology/approachQuestionnaire surveys were conducted to collect the opinions of 212 household representatives living in Hanoi City. The survey tools were tested and adjusted through an online survey with 191 responses. Multivariate probit and linear regression models were used to identify determinants of respondents’ choices of measures and their WTP.FindingsRespondents expressed their strong preferences for three measures for air quality improvements, including: (1) increase of green spaces; (2) use of less polluting fuels; (3) expansion of public transportation. The mean WTP for the implementation of those measures was estimated at about 148,000–282,000 Vietnamese dong, equivalent to 0.09–0.16% of household income. The respondents’ choices appear to be consistent with their characteristics and needs, such as financial affordability, time on roads and their perceived impacts of air pollution. The WTP estimates increase with perception of air pollution impacts, time on roads, education and income; but are lower for older people.Originality/valueTo gain a better understanding of public opinions, we applied multivariate probit models to check whether respondents’ choices were consistent with their characteristics and perceptions. This appears to be the first attempt to test the validity of public opinions on choices of measures for improving urban air quality in Vietnam. Our WTP estimates also contribute to the database on the values of improved air quality in the developing world.

(In)effective leadership? Exploring the interplay of challenges, goals and measures in the context of school improvement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susanne Böse ◽  
Stefan Brauckmann-Sajkiewicz
Keyword(s):  
School Improvement ◽  
School Effectiveness ◽  
School Quality ◽  
School Principals ◽  
School Context ◽  
Strategic Decision ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
The Government

PurposeThis study aims to explore the extent to which schools principals serving disadvantaged communities in Germany are able to set appropriate goals and choose suitable measures for improving their schools according to the specific challenges they face. The authors determine whether principals are able to identify their schools' challenges or whether they merely follow “universal recipes” of the school effectiveness research paradigm regardless of their particular school context. This effectiveness-driven accountability approach requires an in-depth evaluation of the school and its stakeholders and might lead to a new attitude toward failure that sees it as an essential part of developing effective school improvement plans.Design/methodology/approachThe authors conducted descriptive and correlative analyses as well as exploratory and confirmatory factor analyses using longitudinal data of 164 school principals. Through cross-sectional analyses, the authors investigated the connection among challenges, goals and measures and how they correlated with (self-reported) improvements.FindingsFrom a leadership perspective, priorities for school improvement should be aligned with the school-specific challenges they identify and the goals they set to address them.Research limitations/implicationsThe extent to which legislation concerning individual school quality development programs can translate into feasible and effective actions is unclear. Caution should be taken when interpreting the findings of this study, as they reflect school principals' self-selected evaluation measures and therefore might be biased.Practical implicationsIn future research, emphasis should be placed on school management processes, in particular, the development of strategic decision-making, structuring of target perspectives and derivation of steps in school improvement and instructional development. The authors recommend the government offer school principals appropriate and adequate training and support services to prevent them from overburdening their staff.Originality/valueThis paper contributes to a deeper understanding of processes concerning strategic leadership, as opposed to operative management, of schools by revealing context-sensitive considerations.

Financial performance assessment of branded and non-branded hotel companies. Analysis of the Portuguese case

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catarina Martins ◽  
Clara Bento Vaz ◽  
Jorge Manuel Afonso Alves
Keyword(s):  
Financial Performance ◽  
Group Performance ◽  
Value Added ◽  
Strategic Decision ◽  
Financial Ratios ◽  
Bivariate Analysis ◽  
Continuous Growth ◽  
Content Type ◽  
Dea Model ◽  
Brand Effect

Purpose Portugal has been experiencing a continuous growth in tourism activity, with hospitality industry as one of the main tourism sectors. Therefore, the assessment of hotel companies’ performance is very important to assist decision processes. The purpose of this paper is to assess the financial performance (FP) of 570 hotel companies operating hotel units in Portugal in 2017. To explore the question of brand affiliation, a comparison was made between hotel companies with similar stars rating and market orientation. In addition, this paper intends to fill a gap in literature studying the Portuguese reality on the subject of brand affiliation. Design/methodology/approach The present study uses a methodology based on data envelopment analysis (DEA) to assess the overall performance for each company, which further decomposed into the within-group performance and the technological gap. The performance of the hotel company is assessed through the aggregation of multiple financial indicators using the composite indicator (CI) derived from the DEA model. A bivariate analysis based on the Tobit regression to test the robustness of brand effect on FP of hotel companies (HC) was also included. Findings The empirical results show that branded companies, on average, have significantly better overall FP than non-branded companies. On the one hand, the brand effect tends to improve the within-group FP of HCs and the brand presents a statistically significant positive effect on the FP. On the other hand, the best practices are observed in both branded and non-branded companies. Practical implications The results of this study illustrate that, globally, the better FP of the branded companies is because of their individual relative companies’ performance and a better model of operation given by the brand effect. Brand affiliation will generally allow for a better FP and essentially a better profitability for invested equity, a higher return on sales and a higher value added per employee. Originality/value The study provides important theoretical and practical contributions that can assist the strategic decision of the HCs in choosing to operate independently or to adopt brand affiliation. Also, it is innovative because the FP of branded and non-branded HCs is measured not using a set of individual financial ratios but through a single CI that aggregates those financial ratios, using a DEA model.

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