When, for whom and why expanding single-option offerings creates value: locomotion fit from choice between options

2021 ◽  
Vol 56 (1) ◽  
pp. 92-112
Author(s):  
Frank Mathmann ◽  
Mathew Chylinski
Keyword(s):  
Willingness To Pay ◽  
Active Control ◽  
Design Methodology ◽  
Content Type ◽  
Direct To Consumer ◽  
Expert Selection ◽  
Product Value ◽  
Practical Implications

Purpose Emerging direct-to-consumer brands offer a single option to consumers before expanding their assortment as the business grows. This provides a counterexample to commonly held beliefs concerning consumers’ aversion to single options. The purpose of this paper is to study when, for whom and why offering two product options (vs a single option) is valued by consumers. Design/methodology/approach Across six experiments, this research investigates consumers’ locomotion orientation (a motivation for controlling progress), which affects the valuation of choice (vs single options). Findings Consumers’ locomotion orientation determines perceived product value for products chosen from a two-option set (vs when considering a single option) because choice offers active control, which is engaging for high-locomotion consumers. Expanding the set to six options has no such effect. Research limitations/implications Studies 1, 4a and 4b are set in the context of expert-selected single options, while Studies 2, 3 and 5 do not involve expert selection. However, the authors does not contrast expert vs non-expert conditions directly. Practical implications Managers can increase consumers’ willingness to pay by using advertisements to induce locomotion or segmenting consumers based on locomotion orientations. Originality/value Research suggests that consumers value choice between options, yet many emerging brands succeed with a single option. The authors reconcile this by providing insights into motivations that determine when, for whom and why choice (vs a single option) is valued.

Willingness-to-pay for robot-delivered tourism and hospitality services – an exploratory study

2021 ◽  
Vol 33 (11) ◽  
pp. 3926-3955
Author(s):  
Stanislav Ivanov ◽  
Craig Webster
Keyword(s):  
Willingness To Pay ◽  
Design Methodology ◽  
Online Survey ◽  
Regression Analyses ◽  
Test Analysis ◽  
Content Type ◽  
Hypothetical Scenario ◽  
Tourism And Hospitality ◽  
Practical Implications ◽  
Marketing Messages

Purpose This paper aims to investigate potential consumers’ willingness to pay for robot-delivered services in travel, tourism and hospitality, and the factors that shape their willingness to pay. Design/methodology/approach An online survey yielded a sample of 1,573 respondents from 99 countries. Independent samples t-test, Analysis of variance (ANOVA), cluster, factor and regression analyses were used. Findings Respondents expected to pay less for robot-delivered services than human-delivered services. Two clusters were identified: one cluster willing to pay nearly the same price for robotic services as for human-delivered services, whilst the other expected deep discounts for robotic services. The willingness-to-pay was positively associated with the attitudes towards robots in tourism, robotic service experience expectations, men and household size. It was negatively associated to travel frequency, age and education. Research limitations/implications The paper’s main limitation is its exploratory nature and the use of a hypothetical scenario in measuring respondents’ willingness to pay. The data were gathered prior to the COVID-19 pandemic and do not reflect the potential changes in perceptions of robots due to the pandemic. Practical implications Practitioners need to focus on improving the attitudes towards robots in tourism because they are strongly and positively related to the willingness to pay. The marketing messages need to form positive expectations about robotic services. Originality/value This is one of the first papers to investigate consumers’ willingness to pay for robot-delivered services in travel, tourism and hospitality and factors that shape their willingness to pay.

Felix Oberholzer-Gee: The formula for keeping your strategy simple and focused

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Brian Leavy
Keyword(s):  
Willingness To Pay ◽  
Value Creation ◽  
Design Methodology ◽  
Business Leaders ◽  
Comprehensive Understanding ◽  
Value Drivers ◽  
Work Lives ◽  
Content Type ◽  
A Value ◽  
Practical Implications

Purpose In his new book Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance, Felix Oberholzer-Gee offers business leaders and strategists guidance on a basic idea: unless an initiative creates value for customers, employees or suppliers, it is a waste of time and resources. Design/methodology/approach In this interview with S&L contributing editor Brian Leavy, Prof. Felix Oberholzer-Gee explains: “All you need to ask is, ‘Can my organization create differentiated value, can we raise customer willingness-to-pay (WTP) or lower employee and supplier willingness-to-sell (WTS)?’”. Findings Value-based strategy is “back-to-basics” in the sense that the approach insists on value creation as the foundation for every activity in the business. Practical/implications A comprehensive understanding of employees’ work lives is likely to reveal many chances to create value. Originality/value The interview explains why and how firms should seek to exceed expectations where it counts, and sustain excellence by diverting resources from lower-ranked value drivers.

Simultaneous effects of multiple cues in restaurant reviews

2019 ◽  
Vol 33 (5) ◽  
pp. 521-531 ◽  
Author(s):  
Esther L. Kim ◽  
Sarah Tanford
Keyword(s):  
Willingness To Pay ◽  
Factorial Design ◽  
Design Methodology ◽  
Online Reviews ◽  
Interactive Effects ◽  
Content Type ◽  
Multiple Cues ◽  
Situational Cues ◽  
Restaurant Reviews ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate how consumers simultaneously process multiple cues for different dining occasions when making a restaurant decision. Design/methodology/approach This paper investigates the influence of priming (review prototype), effort (distance) and involvement (occasion) on restaurant evaluations, willingness to drive and willingness to pay for a restaurant meal. A 2 (prototype: negative, positive) × 2 (distance: close, far) × 2 (occasion: casual, special) between-subjects factorial design was used. Findings The paper finds that each variable influences a different outcome, whereby people rely on a review prototype for restaurant evaluation and choice, a distance cue for willingness to drive and a dining occasion for willingness to pay. Practical implications This paper suggests that restaurant marketers can highlight exemplary service through online reviews, increase profitability by promoting special occasions and geographically expand their market by attracting people to drive for a special dinner. Originality/value This paper evaluates the simultaneous interactive effects of multiple cues in service settings. It demonstrates that situational cues moderate the effect of primary cues in online reviews.

Drivers of consumers’ willingness to pay for halal logistics

2016 ◽  
Vol 118 (2) ◽  
pp. 464-479 ◽  
Author(s):  
Elahe Fathi ◽  
Suhaiza Zailani ◽  
Mohammad Iranmanesh ◽  
Kanagi Kanapathy
Keyword(s):  
Willingness To Pay ◽  
Least Squares ◽  
Partial Least Squares ◽  
Media Coverage ◽  
Design Methodology ◽  
Positive Relationship ◽  
Policy Makers ◽  
Content Type ◽  
Halal Food ◽  
Practical Implications

Purpose – The purpose of this paper is to investigate the factors that motivate the consumers in Malaysia to pay for halal logistics and its consequences on their demand for halal logistics certification. Design/methodology/approach – Data were collected through a survey responded 313 randomly selected consumers. Partial least squares technique was employed in the analysis. Findings – Results showed that consumers’ perception on halal logistics, their concern about halal, and media coverage have positive and significant effects on consumers’ willingness to pay for halal logistics. Furthermore, positive relationship exists between willingness to pay and the extent of demand for the halal logistics certification. Practical implications – The findings of the study will be useful for the policy makers and managers of halal food companies because they can guide them in increasing the demand for the halal logistics. Originality/value – Although halal logistics play a key role in supporting the halal status of any given halal foods, the demand for this service is low. Thus, this study contributes to the advancement of knowledge on the drivers of consumers’ willingness to pay for halal logistics.

Organic consumers’ price knowledge, willingness-to-pay and purchase decision

2016 ◽  
Vol 118 (11) ◽  
pp. 2732-2743 ◽  
Author(s):  
Manika Rödiger ◽  
Sabine Plaßmann ◽  
Ulrich Hamm
Keyword(s):  
Willingness To Pay ◽  
Design Methodology ◽  
Great Majority ◽  
Price Sensitivity ◽  
Purchase Decision ◽  
Content Type ◽  
Shopping List ◽  
Price Differentiation ◽  
Innovative Method ◽  
Practical Implications

Purpose The purpose of this paper is to gain insights into organic consumers’ price sensitivity by investigating price knowledge, willingness-to-pay and real purchase decision. Design/methodology/approach Organic food consumers’ price knowledge, willingness-to-pay and real purchase decision were examined in a comprehensive field study with 642 respondents. An innovative method was used to collect data for products that were truly relevant to the respondents: before entering the shop, respondents were asked about the items on their shopping list, the prices they expected to find and the maximum prices they were willing to pay. If respondents stated a willingness-to-pay value below the actual store price, they were approached again after shopping to verify their purchase decision. Findings The great majority of respondents failed to estimate the correct store price. The deviation between the estimated price and the actual store price was on average 19.9 per cent. The respondents were willing to pay on average 52.7 per cent above store prices. It was revealed that in 67.0 per cent of the cases, respondents bought a product even though the store price was higher than the willingness-to-pay they stated upon entering the store. Practical implications Category-specific insights into price knowledge and willingness-to-pay of organic consumers might be used for price differentiation strategies. Originality/value To the authors’ knowledge, this is the first study to investigate organic consumers’ item- and store-specific price knowledge, willingness-to-pay and real purchase decision in a single-source approach.

scholarly journals Satisfaction and attitudinal responses: indirect effects of involvement and reputation

2019 ◽  
Vol 55 (1) ◽  
pp. 70-85
Author(s):  
Aleixo Fernandes ◽  
Marcelo Moll Brandao ◽  
Evandro Luiz Lopes ◽  
Filipe Quevedo-Silva
Keyword(s):  
Willingness To Pay ◽  
Business Performance ◽  
Design Methodology ◽  
Linear Regression Analysis ◽  
Consumer Involvement ◽  
Content Type ◽  
Brand Reputation ◽  
Dependent Variables ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to identify the influence of the company’s reputation and individual consumer involvement in the relationship between satisfaction, loyalty and willingness to pay more for a product. Design/methodology/approach The method used is quantitative, by means of a survey with real consumers of automotive services of two vehicle dealerships, whose data were analyzed through linear regression analysis and conditional analysis of moderation. Findings The authors have identified that the relationship between satisfaction and loyalty and between loyalty and willingness to pay more for a product is entirely moderated by the (high) reputation of the brand and the (high) individual involvement of the consumer. Practical implications The study contributes to marketing managers as it demonstrates effect of brand reputation and involvement. Therefore, it is understood that these variables need to be considered in satisfaction surveys, as it has been proven that satisfaction alone cannot explain the variables of business performance (loyalty and willingness to pay). Originality/value The greatest innovation of this study is the identification of the total moderation between stated satisfaction and loyalty and between satisfaction and willingness to pay more. It has been demonstrated that high levels of brand reputation coupled with high levels of consumer involvement account for the fully dependent variables.

scholarly journals QSR customer sustainable behaviors and brand practice perceptions on willingness to pay a premium

2019 ◽  
Vol 33 (2) ◽  
pp. 106-125
Author(s):  
Michael C. Ottenbacher ◽  
Graciela Kuechle ◽  
Robert James Harrington ◽  
Woo-Hyuk Kim
Keyword(s):  
Willingness To Pay ◽  
Design Methodology ◽  
Common Factor ◽  
Sustainable Practices ◽  
Content Type ◽  
Strong Point ◽  
Different Dimensions ◽  
Sustainability Practices ◽  
Quick Service ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the effect of consumer sustainability attitudes and quick service restaurants (QSRs) practices along with the willingness of consumers to pay a premium for sustainability efforts. Design/methodology/approach A random sample of QSR customers in Germany resulted in 428 completed surveys. First, common factor analysis was conducted to assess the summated scales related to the sustainable behavior of customers, the importance attached by them to the different dimensions of sustainability and the extent to which customers perceive that QSR implement such practices. Second, the effect of these summated scales on the willingness to pay a premium (WTPP) for sustainability practices were assessed by means of a logistic regression. Findings The findings indicated that WTPP for sustainability efforts is primarily driven by internal beliefs and behaviors of consumers themselves rather than actions by QSR firms. Furthermore, when comparing five major QSRs, QSR brands did not appear to create a strong point of differentiation in their sustainability practices in the minds of frequent QSR consumers in the context of this study. Practical implications Implications of these results suggest that a growing number of consumers place high importance on sustainability and engage in personal sustainability practices that impact behaviors such as QSR selection and a WTPP for QSR brands and products that are perceived as implementing sustainable practices. Originality/value This paper addresses a gap by assessing drivers of willingness of QSR customers to pay a premium for sustainable practices and if QSR brands sustainability practices differ in the minds of consumers.

scholarly journals Do consumers really recognise a distinct quality hierarchy amongst PDO sparkling wines? The answer from experimental auctions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luigi Galletto ◽  
Francesco Caracciolo ◽  
Vasco Boatto ◽  
Luigino Barisan ◽  
Deborah Franceschi ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Significant Role ◽  
Design Methodology ◽  
Northern Italy ◽  
Geographical Indications ◽  
Experimental Auctions ◽  
Content Type ◽  
Additional Information ◽  
Practical Implications ◽  
Selection Of

PurposeConsumer likeability and willingness to pay (WTP) for two Italian sparkling wines, (Conegliano Valdobbiadene Prosecco DOCG and Prosecco DOC) are evaluated through a non-hypothetical Becker-DeGroot-Marschak (BDM) auction during a wine-tasting experiment. The purpose of this paper is to estimate individual WTP and relate it to likeability for both wines, with and without supplying additional information on their features.Design/methodology/approachData were collected in May–June 2019 from a sample of 99 consumers in Northern Italy. A non-hypothetical BDM auction in a wine-tasting experiment was implemented.FindingsThe results show that the additional information plays a significant role in widening the WTP gap between the two geographical indications (GIs), while the blind tasting narrows this gap. The “superiority” of the Conegliano Valdobbiadene Prosecco DOCG is confirmed but relies more on its better reputation than its better taste.Research limitations/implicationsThe authors are aware of two main limitations in the study. The first is the territorial composition of the consumer sample. The second is the selection of the Prosecco bottles used in the experiment. The results are considered pioneering and need to be verified by additional experiments with different consumer and bottle samples.Practical implicationsPromotional suggestions for the Tutelary Consortia of the two GIs stem from the results. The Prosecco DOC should primarily stress its likeability, while the Conegliano Valdobbiadene Prosecco DOCG should primarily emphasise the reasons for its “superiority”.Originality/valueTo the best of the authors' knowledge, no previous study has related likeability and WTP for similar GI wines produced in contiguous areas. Moreover, the current research has applied a non-hypothetical BDM auction in a wine-tasting experiment.

Wine consumers in British Columbia, Canada

2020 ◽  
Vol 32 (3) ◽  
pp. 441-455
Author(s):  
Svan Lembke ◽  
Lee Cartier
Keyword(s):  
British Columbia ◽  
Design Methodology ◽  
Significant Risk ◽  
Marketing Strategies ◽  
Next Generation ◽  
Content Type ◽  
Direct To Consumer ◽  
New Consumer ◽  
Practical Implications ◽  
Better Than

Purpose The purpose of this study is to redirect wine producer marketing strategies in British Columbia (BC) to better market their wine to the next generation of local consumers and compete against foreign imports. Design/methodology/approach This study was conducted using representative data collected from BC wine consumers through a survey of 500 participants and subsequent focus groups to better understand and interpret the findings. Findings The findings confirm that the growth of wine sales in BC is driven by the Millennial generation. This generation shows some different wine purchasing and consumption behaviours than previous generations. BC wine producers compete against foreign imports by using their direct-to-consumer sales channel (s) and could also use their superior understanding for the next generation of wine consumers to better sell their local wines across multiple channels. Practical implications To onboard the next generation of Millennial consumers to BC wines, BC wine producers are advised to use the tasting room environment to learn more about their local consumers and also sell via other channels. Some gaps in consumer needs across generations are identified and BC producers are advised to further target this new consumer and meet the needs of the local Millennials better than the competition. Originality/value The study is unique in its location. BC wine producers have often used US research or anecdotal data from their own tasting rooms to inform marketing decisions. The researchers argue that this carries significant risk, especially as the next generation of BC wine consumers displays different purchasing behaviours than those reported in US research.

Customers compelled to purchase

2015 ◽  
Vol 31 (5) ◽  
pp. 4-6
Keyword(s):  
Willingness To Pay ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Social Benefits ◽  
Brand Trust ◽  
Content Type ◽  
Brand Switching ◽  
Pertinent Information ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – The findings reveal several interesting differences between compulsive buyers and non-compulsive buyers. The latter seem to appreciate and focus mainly on functional benefits of branded products and avoid buying unbranded products, whereas compulsive buyers value emotional and social benefits but often decide to buy “more and cheaper” items to achieve variety in their purchases. Non-compulsive buyers develop brand trust in, attachment to and higher willingness to pay for their favorite brand than for other brands, whereas compulsive buyers even struggle to name a favorite brand. Furthermore, compulsive buyers engage in more brand switching than non-compulsive buyers. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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