How consumers respond to social norms: an evidence from pay-what-you-want (PWYW) pricing

2019 ◽  
Vol 36 (4) ◽  
pp. 494-505 ◽  
Author(s):  
Preeti Narwal ◽  
Jogendra Kumar Nayak
Keyword(s):  
Social Norms ◽  
Consumer Behaviour ◽  
Critical Role ◽  
Price Fairness ◽  
Content Type ◽  
Consumer Responses ◽  
Norm Compliance ◽  
Perceived Price ◽  
Pay What You Want

PurposeThis paper aims to investigate consumer behaviour in response to social norms under pay-what-you-want (PWYW) pricing. Specifically, it explores the critical role of social norms such as norm priming and consumer prior trust in the retailer on consumers’ perceived price fairness, trust, willingness to pay, purchase intentions and intentions to spread negative word of mouth about the retailer.Design/methodology/approachData on dependent measures were collected through the scenario-based online experimental approach and assessed using MANOVA analysis.FindingsResults confirm the significance of norms by indicating the critical role of norm belief on consumer responses. Also, increasing the salience of norms by priming them usually intensifies negative behaviour, and pre-existing trust in the retailer serves as an imperfect cushion against consumer negative reactions to norm violation, but this effect is observed to be decreasing with increase in prior trust.Research limitations/implicationsFurther research should consider the contextual (time, place, media) influences and assumptions to increase the generalizability of the findings.Originality/valueTo the best of the authors’ knowledge, this is the first paper to explicitly examine the effects of social-norm compliance by sellers on consumer behaviour in the context of PWYW pricing.

How price fairness and fit affect customer tariff evaluations

2018 ◽  
Vol 29 (4) ◽  
pp. 735-764 ◽  
Author(s):  
Philipp Leinsle ◽  
Dirk Totzek ◽  
Jan Hendrik Schumann
Keyword(s):  
Experimental Studies ◽  
Price Fairness ◽  
Complex Interplay ◽  
Service Usage ◽  
Content Type ◽  
Perceived Price ◽  
Perceived Price Fairness ◽  
Consumption Goals ◽  
Tariff Choice

Purpose Promotional cues related to notions of fair prices or pricing designed to fit consumers’ needs are prevalent for many service offers. The purpose of this paper is to investigate how both customers’ price fairness and idiosyncratic fit perceptions shape their tariff evaluations. Design/methodology/approach Two experimental studies involving different tariff types and service contexts test the complex interplay of customers’ perceived price fairness and idiosyncratic fit with customer and context characteristics on their tariff evaluations. Findings Customers judge tariffs drawing on both the perceived price fairness and idiosyncratic fit, driven by the perceived price level of the tariff and the perceived pricing transparency of the firm. Customers’ service usage and consumption goals moderate these effects: heavy users and hedonic consumers indicate lower price sensitivity while focusing more on their transparency perception. The role of perceived price fairness and idiosyncratic fit for tariff choice depends on the tariff/service context; idiosyncratic fit is important when it is incidental (e.g. flat rates) rather than intentional (i.e. customized tariffs) and when customers lack the expertise or confidence to evaluate price fairness such as in the case of relatively new services. Originality/value Prior studies focused on either price fairness or idiosyncratic fit and thus cannot fully explain the complex interplay between both in the context of tariff choice. This paper explicates the conditions that affect the relative importance of both concepts and under which incidental offers are better received than premeditated ones.

scholarly journals Innovations for potential entrepreneurs in service quality and customer loyalty in the hospitality industry

2020 ◽  
Vol 14 (3) ◽  
pp. 317-328
Author(s):  
Zoya Wajid Satti ◽  
Samreen Fahim Babar ◽  
Shagufta Parveen ◽  
Kashif Abrar ◽  
Asma Shabbir
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Hospitality Industry ◽  
Moderated Mediation ◽  
Price Fairness ◽  
Content Type ◽  
Perceived Price ◽  
Perceived Price Fairness

Purpose This study aims to investigate the role of moderated mediation between innovation in service quality and customer loyalty in the hospitality industry for potential entrepreneurs in the hospitality industry. Design/methodology/approach The authors have collected data from customers of the hospitality industry of significant cities of Pakistan using 362 structured questionnaires. Structural equation modelling was used to find out moderated mediation between innovation in service quality and customer loyalty in the hospitality industry for potential entrepreneurs in the hospitality industry. Findings The results showed that the role of customer satisfaction as a mediator and the role of perceived price fairness as a moderator between service quality and customer loyalty is statistically significant. Customers are influenced by price, and it leads to their satisfaction in the hospitality industry. Research limitations/implications The results of this study can be used by managers of the restaurant industry to enhance customer loyalty by focusing on customer satisfaction and perceived price. Originality/value The evidence documented in this paper is first known to measure the role of a mediator and moderator between service quality and customer loyalty for potential entrepreneurs. This paper will add to the literature of service quality in the hospitality industry concerning the role of customer satisfaction and perceived price fairness for future and potential entrepreneurs.

Examining the impact of external reference prices on seller price image dimensions and purchase intentions in pay what you want (PWYW)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shivam Rai ◽  
Preeti Narwal
Keyword(s):  
Positive Impact ◽  
Purchase Intentions ◽  
Price Fairness ◽  
Content Type ◽  
External Reference ◽  
Posted Prices ◽  
Perceived Price ◽  
Pay What You Want ◽  
Price Image ◽  
The Impact

PurposePay what you want (PWYW) is a participative pricing mechanism that permits customers complete freedom to choose prices. PWYW literature reports the influence of external reference price (ERP) on customers' price decisions and payments. The current research examines the influence of ERP presence, salience and understanding at the seller level by analysing customers' perceptions of seller price image dimensions and purchase intentions.Design/methodology/approachStudy 1 tests the impact of ERP presence and salience in controlled lab settings while Study 2 takes this investigation further by including the moderating effect of ERP understanding on seller price image dimensions and purchase intentions in online settings.FindingsResults illustrate the positive impact of ERP presence on all seller price image dimensions excluding the perceived price level. Perceived price fairness mediates the impact of ERP presence on perceived value. ERP salience positively impacts price processability. ERP presence and salience attached to it positively impact customers' purchase intentions through seller price image dimensions.Originality/valueThis is possibly the first paper to investigate the ERP effect on seller price image dimensions in a PWYW context that lacks fixed posted prices.

How source of funds affects buyer’s judgments of price fairness and subsequent response

2016 ◽  
Vol 25 (7) ◽  
pp. 710-720 ◽  
Author(s):  
Adam Nguyen ◽  
Juan (Gloria) Meng
Keyword(s):  
Good Deal ◽  
Social Acceptability ◽  
Relative Role ◽  
Price Difference ◽  
Price Fairness ◽  
Content Type ◽  
Subsequent Response ◽  
Fairness Judgments ◽  
Perceived Price

Purpose This research aims to examine how source of funds (paying with company’s funds versus personal funds) affects buyer’s judgments of price fairness and via these judgments, buyer’s response to prices. Design/methodology/approach A scenario-based experiment is used (N = 200). To test the hypotheses, the authors run moderated mediation regression analyses with the help of the PROCESS macro. Findings Drawing on fairness heuristics theory, the authors hypothesize and find that relative to when paying with personal funds, when paying with company’s funds, the perceived price difference plays a less significant role, whereas the perceived social acceptability of the pricing practice underlying the price difference plays a more important role in shaping price fairness judgments and, via these judgments, buyer’s response to prices. Practical implications The findings generate advice for companies that serve both the business and personal segments (e.g. airlines and hotels). Buyers in the personal segment typically pay with their own money. To persuade these buyers that a price is fair, it is crucial to show that the price represents a good deal for them. Buyers in the business segment often pay with company’s fund. Companies have more flexibility in charging different prices, but they should make sure that the reasons for the price difference are socially acceptable. Originality/value This research shows how the relative role of price difference versus social acceptability in price fairness judgments varies as a function of source of funds and how an inconsistency between price difference and its economic impact affects price fairness judgments.

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.

What’s in it for me? Food packaging and consumer responses, a focus group study

2015 ◽  
Vol 117 (3) ◽  
pp. 1122-1135 ◽  
Author(s):  
Fredrik Fernqvist ◽  
Annika Olsson ◽  
Sara Spendrup
Keyword(s):  
Focus Group ◽  
Food Packaging ◽  
Quantitative Methods ◽  
Focus Group Study ◽  
Content Type ◽  
Consumer Responses ◽  
Advantages And Disadvantages ◽  
Consumer Benefits ◽  
Group Interviews

Purpose – The purpose of this paper is to explore consumer views on different aspects of packaging, exemplified by a common product in the fruit and vegetable category and to identify advantages and disadvantages perceived by consumers purchasing packaged or unpackaged products. Design/methodology/approach – Three focus group interviews were conducted. Thematic analysis based on theory was performed. The findings were categorised into nine themes. Findings – Consumer views on packaging aspects were revealed, covering: packaging material; pack size; protection and preservation; convenience; price; communication and information; ethical perspectives; novelty and innovation; and advantages and disadvantages of packaged and unpackaged products. Research limitations/implications – The study adds to present knowledge on the role of packaging in consumers’ food choices. The qualitative analysis identified areas for further research through quantitative methods. Practical implications – Challenges in communicating the consumer benefits of packaging and ways to improve the attractiveness of items in the fresh produce category were identified. The results can potentially assist in improving food packaging design practice to the mutual benefit of consumers and suppliers. Originality/value – Fruit and vegetables is generally a category with weak branding and low levels of packaging. This study examined the role of packaging in a category with substantial opportunities for differentiation and increasing consumer value. The results can be applied in immediate practice and/or serve as a basis for further research.

Understanding destination evangelism: a social media viewpoint

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Purvendu Sharma
Keyword(s):  
Social Media ◽  
Information Seeking ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Critical Role ◽  
Content Type ◽  
Mediating Role ◽  
Information Seeking Behaviors ◽  
Role Of Information

PurposeThe present research aims to introduce and understand the promising nature of destination evangelism in the context of social media-based tourism communities (SMTCs). Further, factors that influence evangelism and information-seeking behaviors on SMTCs are examined.Design/methodology/approachA conceptual model is developed that features an interplay of destination distinctiveness, destination evangelism, travel commitment and information-seeking engagement. Data were collected from 215 active users of SMTCs and analyzed using structural equation models.FindingsThe research findings indicate that destination distinctiveness and information-seeking positively lead to destination evangelism. Information-seeking is found to mediate the relationship between (1) destination evangelism and travel commitment and (2) destination evangelism and distinctiveness.Research limitations/implicationsThe research offers meaningful insights into exploring constituents of destination evangelism. The research also understands and highlights the critical role of information-seeking engagement about distinct destinations.Practical implicationsThis research highlights key areas to build, improve and inspire destination evangelism on SMTCs.Originality/valueThis study offers a fresh contribution to tourism literature by investigating destination evangelism and its drivers. This is explained by closely uniting vital research streams of evangelism, tourism and engagement. It further highlights the dual mediating role of information seeking, suggesting that these engagements are critical to evangelizing destinations.

Institutional effect on born global firms in China: the role of Sun Tzu’s The Art of War strategies

2016 ◽  
Vol 10 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Man Zhang ◽  
Qian Gao ◽  
Jane V. Wheeler ◽  
Jungsook Kwon
Keyword(s):  
Emerging Markets ◽  
Institutional Environment ◽  
Critical Role ◽  
Born Global ◽  
Internationalization Process ◽  
Content Type ◽  
International Performance ◽  
The Relationship ◽  
Born Global Firms

Purpose – This paper aims to investigate the role of Sun Tzu’s significant strategies on the relationship between the institutional environment and international performance of Chinese born global firms, a type of small- and medium-sized enterprise (SME) characterized by the company’s limited resources and its early efforts to internationalize. Design/methodology/approach – The methodology is based on a multi-case analysis of interviews conducted with four chosen born global firms, coupled with public database and Web site searches. Through the use of qualitative methods, propositions were developed. Findings – This paper provides insights regarding how the institutional environment, both formal and informal, has a strong positive relationship with born global firm’s international performance. Moreover, Sun Tzu’s significant strategies play a critical role in the internationalization process of born global firms in emerging markets. Originality/value – Although existing studies discuss the application of Eastern philosophical strategies adopted by firms in emerging markets, to the best of our knowledge, this is one of the earliest studies which evaluates the moderation effect of Sun Tzu’s significant strategies on the relationship between institutional environment and business performance. The paper contributes to scholarly discourse on the influencing factors of born global firm’s internationalization process. It also has practical relevance to international entrepreneurs and SMEs from emerging markets.

scholarly journals Using EEG to examine the role of attention, working memory, emotion, and imagination in narrative transportation

2018 ◽  
Vol 52 (1/2) ◽  
pp. 92-117 ◽  
Author(s):  
Ross Gordon ◽  
Joseph Ciorciari ◽  
Tom van Laer
Keyword(s):  
Working Memory ◽  
Energy Efficiency ◽  
Social Marketing ◽  
Emotional Responses ◽  
Brain Response ◽  
Content Type ◽  
Consumer Responses ◽  
Narrative Transportation ◽  
Practical Implications

Purpose This paper aims to present a study using encephalography (EEG) to investigate consumer responses to narrative videos in energy efficiency social marketing. The purpose is to assess the role of attention, working memory, emotion and imagination in narrative transportation, and how these stages of narrative transportation are ordered temporally. Design/methodology/approach Consumers took part in an EEG experiment during which they were shown four different narrative videos to identify brain response during specific video segments. Findings The study found that during the opening segment of the videos, attention, working memory and emotion were high before attenuating with some introspection at the end of this segment. During the story segment of the videos attention, working memory and emotion were also high, with attention decreasing later on but working memory, emotion and imagination being evident. Consumer responses to each of the four videos differed. Practical implications The study suggests that narratives can be a useful approach in energy efficiency social marketing. Specifically, marketers should attempt to gain focused attention and invoke emotional responses, working memory and imagination to help consumers become narratively transported. The fit between story object and story-receiver should also be considered when creating consumer narratives. Social implications Policymakers and organisations that wish to promote pro-social behaviours such as using energy efficiently or eating healthily should consider using narratives. Originality/value This research contributes to theory by identifying brain response relating to attention, working memory, emotion and imagination during specific stages of narrative transportation. The study considers the role of attention, emotion, working memory and imagination during reception of stories with different objects, and how these may relate to consumers’ narrative transportation.

When and whom should retailers offer price reductions in times of crisis?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haeyoung Jeong ◽  
Siddharth Bhatt ◽  
Hongjun Ye ◽  
Jintao Zhang ◽  
Rajneesh Suri
Keyword(s):  
Design Methodology ◽  
Longitudinal Design ◽  
Critical Role ◽  
Individual Characteristics ◽  
Pricing Strategies ◽  
Consumer Spending ◽  
Content Type ◽  
Turbulent Times ◽  
Offering Price

PurposeWith a decrease in consumer spending during the coronavirus disease 2019 (COVID-19) pandemic, many retailers are offering price reductions to stimulate demand. However, little is known about how consumers perceive such price reductions executed during turbulent times. The authors examine whether the timing of price reductions and individual differences impact consumers' evaluations of the retailers offering such reductions.Design/methodology/approachUsing a longitudinal design, the authors inquire into four retailers' motives that consumers may infer from a price decrease at two different times during the COVID-19 crisis.FindingsThe authors find that the timing of price reductions plays a key role in shaping consumers' inference of retailers' motives. The authors also uncover individual characteristics that affect consumers' inferences.Originality/valueThis research advances the literature by demonstrating the critical role of timing and individual characteristics in consumers' perceptions of price reductions during times of crisis. The authors findings also provide retailers with actionable insights for their pricing strategies. The findings may be generalizable to other types of crises that may arise in the future.

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