Homebuyers’ preferences concerning installed photovoltaic systems

2018 ◽  
Vol 11 (1) ◽  
pp. 102-124 ◽  
Author(s):  
Brano Glumac ◽  
Thomas P. Wissink
Keyword(s):  
Willingness To Pay ◽  
Housing Market ◽  
Choice Model ◽  
Stated Preference ◽  
Photovoltaic System ◽  
Photovoltaic Systems ◽  
Choice Data ◽  
Content Type ◽  
The Impact ◽  
General Preferences

Purpose This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is relatively unknown. Considering that expected lifespan of photovoltaic systems is at least 25 years, it is likely that many dwellings with a photovoltaic system will enter the housing market. Design/methodology/approach Few houses with installed photovoltaic systems have been sold in the market to date. Lack of real market data imposes a method based on the stated preference data. Therefore, the general preferences toward photovoltaic systems are determined by a discrete choice model based on responses of 227 homebuyers in the Eindhoven region, The Netherlands. Further, the model estimates were used to assess the indirect willingness to pay for home photovoltaic systems. This initial willingness to pay is further reassessed with the direct willingness to pay collected in an open-ended questionnaire format. Findings Results of the model show that the homebuyers’ preferences for home photovoltaic systems are large and significant. In addition to general preferences, this article reports on the taste heterogeneity carried out by separating observations based on the respondents’ characteristics. For example, photovoltaic systems are more appealing to homebuyers in more urban or central neighbourhoods. Further, the results of the direct survey lead to the conclusion that people are probably willing to pay close to the replacement value of the system and only 22 per cent of all respondents did not want to pay anything for the installed photovoltaic system. Research limitations/implications These findings are exploratory and they raise a number of questions for further investigations, such as those regarding the real estate value of the installed photovoltaic systems. The reported findings must be regarded as local, thus further research is necessary to understand the impact on European housing markets. Practical implications Preferences and willingness to pay for home photovoltaic systems can provide a variety of economic, social and political recommendations to different interested parties such as homeowners, buyers, realtors, retailers, energy companies and governments. For instance, a homeowner would like to know what would be the effect of a photovoltaic system on the housing market. Originality/value As per the knowledge of authors, this is the first paper to estimate the impact of an installed photovoltaic system on housing choice, measured by stated choice data in the local housing market. It expands the existing body of knowledge for increasingly important issues of valuing and measuring preferences for photovoltaic systems installed on dwellings.

scholarly journals Airline choice model for an international round-trip flight considering outbound and return flight schedules

2020 ◽  
Vol 54 (2) ◽  
pp. 75-93 ◽  
Author(s):  
Claudia Munoz ◽  
Henry Laniado ◽  
Jorge Córdoba
Keyword(s):  
Travel Time ◽  
Choice Model ◽  
Stated Preference ◽  
Mixed Logit ◽  
Choice Data ◽  
Round Trip ◽  
Flight Schedules ◽  
Trade Offs ◽  
International Round ◽  
The Impact

This paper quantified the impact of outbound and return flight schedule preferences on airline choice for international trips. Several studies have used airline choice data to identify preferences and trade-offs of different air carrier service attributes, such as travel time, fare and flight schedule. However, estimation of the effect return flight schedules have on airline choice for an international round-trip flight has not yet been studied in detail. Therefore, this study introduces attributes related to return flight characteristics and round-trip flight schedule interaction into the airline choice models, which have not previously been reported in the literature. We developed a stated preference survey that includes round-trip fares based on flight schedule combinations and the number of days prior to departure fares was purchased. We applied modelling techniques using a set of stated preference data. A mixed logit model was tested for the presence of heterogeneity in passengers' preferences. Our results indicated that models with attributes related to return flight and its interaction with outbound flight attributes have a superior fit compared with models only based on attributes reported in the literature review. The model found shows that airfare, travel time, arrival preference schedule in the outward journey, departure preference in the return journey and the schedule combination of round-trip flight are significantly affecting passenger choice behaviour in international round-trip flights. Sensitivity analysis of airline service characteristics and their marketing implications are conducted. The analysis reports seven policies with the greatest impact on each airline choice probabilities. It shows that by reducing travel time and airfare and by adopting an afternoon and night schedule preference for outbound and return flight, respectively, the highest probability on airline choice would be reached. This research contributes to the current literature by enhancing the understanding of how passengers choose airlines, considering both outbound and inbound journey characteristics. Thus, this study provides an analytical tool designed to provide a better understanding of international round-trip flight demand determinants and support carrier decisions.

scholarly journals Do millennials value travel time differently because of productive multitasking? A revealed-preference study of Northern California commuters

2021 ◽  
Author(s):  
Aliaksandr Malokin ◽  
Giovanni Circella ◽  
Patricia L. Mokhtarian
Keyword(s):  
Older Adults ◽  
Young Adults ◽  
Willingness To Pay ◽  
Travel Time ◽  
Choice Model ◽  
Mode Choice ◽  
Revealed Preference ◽  
Northern California ◽  
Factors Affecting ◽  
The Impact

AbstractMillennials, the demographic cohort born in the last two decades of the twentieth century, are reported to adopt information and communication technologies (ICTs) in their everyday lives, including travel, to a greater extent than older generations. As ICT-driven travel-based multitasking influences travelers’ experience and satisfaction in various ways, millennials are expected to be affected at a greater scale. Still, to our knowledge, no previous studies have specifically focused on the impact of travel multitasking on travel behavior and the value of travel time (VOTT) of young adults. To address this gap, we use an original dataset collected among Northern California commuters (N = 2216) to analyze the magnitude and significance of individual and household-level factors affecting commute mode choice. We estimate a revealed-preference mode choice model and investigate the differences between millennials and older adults in the sample. Additionally, we conduct a sensitivity analysis to explore how incorporation of explanatory factors such as attitudes and propensity to multitask while traveling in mode choice models affects coefficient estimates, VOTT, and willingness to pay to use a laptop on the commute. Compared to non-millennials, the mode choice of millennials is found to be less affected by socio-economic characteristics and more strongly influenced by the activities performed while traveling. Young adults are found to have lower VOTT than older adults for both in-vehicle (15.0% less) and out-of-vehicle travel time (15.7% less), and higher willingness to pay (in time or money) to use a laptop, even after controlling for demographic traits, personal attitudes, and the propensity to multitask. This study contributes to better understanding the commuting behavior of millennials, and the factors affecting it, a topic of interest to transportation researchers, planners, and practitioners.

The impact of hedonic dining experiences on word of mouth, switching intentions and willingness to pay

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anupama Sukhu ◽  
Anil Bilgihan
Keyword(s):  
Willingness To Pay ◽  
Word Of Mouth ◽  
Internal Validity ◽  
Service Encounters ◽  
Student Sample ◽  
Content Type ◽  
Hedonic Value ◽  
Restaurant Managers ◽  
Positive Word Of Mouth ◽  
The Impact

PurposeWhen customers decide to dine out, they choose a restaurant for both physiological and psychological reasons. The psychological reasons include the hedonic/enjoyment goal of the consumer. The purpose of this paper is to investigate whether dining experiences that provide a positive or negative hedonic value will influence positive word of mouth (PWOM), switching intentions (SI) and willingness to pay (WTP).Design/methodology/approachTwo survey-based experiments using student (N = 112) and general restaurant consumer samples (N = 270) were conducted to test the proposed theoretical model. The student sample provided internal validity, whereas the general consumer sample provided external validity for the study. Two types of manipulations were used to manipulate positive and negative restaurant service encounters. The second study randomly assigned participants into positive or negative scenarios.FindingsThe results suggest that positive (negative) service encounters lead to higher (lower) hedonic value. Higher hedonic value leads to PWOM, WTP and reduced SI. The findings of this study would assist restaurant managers and service scholars by bridging the gap between experiential and relationship marketing.Originality/valueThe current research investigates the dining out experience with a holistic lens.

Quantifying the Impact of the COVID-19 Pandemic on Passenger Vehicle Drivers’ Willingness to Pay for Travel Time Savings and Reliability

2021 ◽  
pp. 036119812110388
Author(s):  
Tristan Cherry ◽  
Mark Fowler ◽  
Claire Goldhammer ◽  
Jeong Yun Kweun ◽  
Thomas Sherman ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Travel Time ◽  
Travel Behavior ◽  
Local Governments ◽  
Consumer Preferences ◽  
Stated Preference ◽  
Travel Time Reliability ◽  
Travel Time Savings ◽  
Time Savings ◽  
The Impact

The COVID-19 pandemic has fundamentally disrupted travel behavior and consumer preferences. To slow the spread of the virus, public health officials and state and local governments issued stay-at-home orders and, among other actions, closed nonessential businesses and educational facilities. The resulting recessionary effects have been particularly acute for U.S. toll roads, with an observed year-over-year decline in traffic and revenue of 50% to 90% in April and May 2020. These disruptions have also led to changes in the types of trip that travelers make and their frequency, their choice of travel mode, and their willingness to pay tolls for travel time savings and travel time reliability. This paper describes the results of travel behavior research conducted on behalf of the Virginia Department of Transportation before and during the COVID-19 pandemic in the National Capital Region of Washington, D.C., Maryland, and Northern Virginia. The research included a stated preference survey to estimate travelers’ willingness to pay for travel time savings and travel time reliability, to support forecasts of traffic and revenue for existing and proposed toll corridors. The survey collected data between December 2019 and June 2020. A comparison of the data collected before and during the pandemic shows widespread changes in travel behavior and a reduction in willingness to pay for travel time savings and travel time reliability across all traveler types, particularly for drivers making trips to or from work. These findings have significant implications for the return of travelers to toll corridors in the region and future forecasts of traffic and revenue.

The role of elaboration likelihood routes in relationships between user-generated content and willingness to pay more

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bekir Bora Dedeoğlu ◽  
Anil Bilgihan ◽  
Ben Haobin Ye ◽  
Yajun Wang ◽  
Fevzi Okumus
Keyword(s):  
Decision Making ◽  
Social Media ◽  
Willingness To Pay ◽  
Structural Equation ◽  
Group Analysis ◽  
Equation Modeling ◽  
Moderating Effects ◽  
Content Type ◽  
Central Route ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of social media sharing on tourists’ willingness to pay more (WPM) at destinations. The moderating effects of tourists’ preferred route in decision-making or obtaining information (i.e. central or peripheral routes) were also examined. Design/methodology/approach A theoretical model was developed and tested using partial least squares structural equation modeling (PLS-SEM). Moderating effects of central and peripheral routes were tested using PLS multi-group analysis. Data were collected from 478 tourists in Antalya, Turkey, a sea, sun and sand tourist destination. Findings Findings indicate that importance attached to participant sharing (IPS) and importance attached to non-participant sharing (INPS) are significant antecedents of tourists’ WPM intentions. Moderating effects of tourists’ preferred route in decision-making reveal that the effect of IPS on WPM intention is more influential for those with high central route preferences than those with low central route preferences. While the effects of INPS and IPS on WPM intention is more determinative for those with higher peripheral route preferences. Practical implications Although it is known by the practitioners that consumer-generated contents are important, this research suggests and supports that these contents trigger tourists to pay higher prices. Originality/value How WPM is motivated by others’ social media sharing was not very clear in the literature. Therefore, this research gap was addressed in part by examining the social media sharing structure in terms of whether others posted on organization-related sites or on personal sites.

The impact of setting on wine tasting experiments

2019 ◽  
Vol 31 (4) ◽  
pp. 578-590
Author(s):  
Geoffrey Lewis ◽  
Steve Charters ◽  
Benoît Lecat ◽  
Tatiana Zalan ◽  
Marianna McGarry Wolf
Keyword(s):  
Willingness To Pay ◽  
Design Methodology ◽  
Subjective Assessment ◽  
Social Setting ◽  
Content Type ◽  
Wine Consumption ◽  
The Past ◽  
The Social ◽  
The Impact ◽  
The Relationship

Purpose Tasting experiments involving willingness to pay (WTP) have grown over the past few years; however, most of them occur in formal wine-tasting conditions, removed from real-world experience. This study aims to conduct experiments on wine appreciation and willingness to pay in both settings, to allow a comparison of how tasters reached conclusions in different situations. Design/methodology/approach The authors conducted two sets of experiments in Dijon, France, with knowledgeable wine drinkers, in 2014 and in 2016, to explore the relationship between wine ratings, WTP and objective characteristics (appellation, labelling and price). The first was in a formal wine-tasting setting (n = 58), and the second in the social setting of a restaurant (n = 52). The experiments involved deception: the tasters were presented with five wines, but in fact only three wines were involved, two of the wines being presented twice. Findings The results from the 2014 study showed that even with a group of experienced tasters, objective characteristics overwhelmed subjective assessment (taste, sensory perception) of the wine. Ratings and WTP were driven by the appellation or brand, labelling and price of the wines. The authors replicated the experiment in a social setting in 2016 which, contrary to their expectations, produced very similar results. In neither experiment did the experienced tasters detect the deception. Research limitations/implications The social setting was a lunch in a restaurant with a group of students who were graduating together. The tasting was conducted by some of their professors, which may have influenced the results and raises questions about whether the setting was truly ‘social’. The sample size for the experiments was comparatively small and further research, including novice and expert tasters, might contradict these findings, or at least add nuances to them. Originality/value The study finds that, contrary to expectations, in the social wine consumption setting of a restaurant meal enjoyed with colleagues, objective wine characteristics over-rode subjective appreciation of the wine.

What drives consumer demand for rice fragrance? Evidence from South and Southeast Asia

2020 ◽  
Vol 122 (11) ◽  
pp. 3473-3498 ◽  
Author(s):  
Subir Bairagi ◽  
Matty Demont ◽  
Marie Claire Custodio ◽  
Jhoanne Ynion
Keyword(s):  
Southeast Asia ◽  
Gender Equity ◽  
Consumer Preferences ◽  
Stated Preference ◽  
The Philippines ◽  
Choice Data ◽  
Content Type ◽  
South And Southeast Asia ◽  
Asian Consumers

PurposeThe purpose of this paper is to analyze geographic heterogeneity of consumer preferences for intrinsic quality attributes of rice in South and Southeast Asia and the drivers of demand for these attributes, with a particular focus on rice fragrance and the role of gender.Design/methodology/approachStated-preference surveys were conducted with 4,231 urban and rural consumers in 37 cities across seven countries (Bangladesh, India, Cambodia, Indonesia, the Philippines, Thailand, and Vietnam) during 2013–2014 and analyzed through a rank-ordered logistic regression with incomplete ranking choice data.FindingsPreferences for rice attributes are found to be significantly heterogeneous among consumers in South and Southeast Asia. Urban Thai consumers tend to prioritize appearance and cooking characteristics over taste and nutritional benefits, relative to all other surveyed consumers. In contrast with South Asian consumers, Southeast Asian consumers have largely adopted Thai preferences for rice texture and fragrance, a trend that was earlier coined “Jasminization.” We find that demand for rice fragrance is mainly driven by women, educated consumers, large families, families spending a lower share of their food expenditures on rice, and consumers in Southeast Asia (particularly the Philippines and Cambodia).Originality/valueLittle is known about geographic heterogeneity, drivers, and the role of gender in demand for rice fragrance. This paper fills these knowledge gaps. Our findings suggest that the more women are empowered in grocery decision-making, the more demand for aromatic rice is expected to rise. These insights can assist market-driven and gender-responsive rice breeding programs in simultaneously enhancing rice farmers' livelihoods and gender equity.

Blissed ignorance?

2014 ◽  
Vol 44 (4) ◽  
pp. 345-362 ◽  
Author(s):  
Gianluca Stefani ◽  
Alessio Cavicchi ◽  
Donato Romano
Keyword(s):  
Willingness To Pay ◽  
Raw Materials ◽  
Production Method ◽  
Negative Influence ◽  
Communication Strategy ◽  
Experimental Auctions ◽  
Content Type ◽  
Production Methods ◽  
The Impact ◽  
First Time

Purpose – The purpose of this study was to explore the impact of information on origin, “typicalness”, production method and flavour on the willingness to pay and the sensorial appreciation of Tuscan sanguinaccio (Italian Salami). Design/methodology/approach – The goal of the study was to explore how differences between willingness to pay and sensorial appreciation (measured using a hedonic score) for the three types are influenced by the nature of the sensorial and non-sensorial information available to the consumer. To evaluate reaction to sensorial information, typical information regimes used in works on degree of disconfirmation (Schifferstein, 2001) were adopted, that is, visual examination of the product with indication of the name and tasting of the labelled product. Findings – Analysis of the results of the experiments indicates that Mallegato and Biroldo have particular characteristics that make it critical to promote them to a vast public. The information on the production methods and ingredients seemed to interact negatively with the sensorial perception of the product after tasting, probably because of the presence of blood and other problematic components (for example, components of the pig head in Biroldo) among the ingredients. Research limitations/implications – Limited size of the sample and a gastronomic niche product analyzed. Practical implications – The negative influence of the processed information has to be considered to efficiently communicate the typicalness of these salami products. In fact, whilst for other traditional products, different kinds of information related to process, raw materials, recipes and, more generally, tradition can be jointly used to increase the arousal and the expectation on products quality characteristics, in this case, the communication strategy has to carefully consider the limit of these product components. Originality/value – For the first time the use of experimental auctions investigate the role of problematic information, such as the presence of blood, on consumers’ preference towards a typical gastronomic product.

scholarly journals The Impact of Perception toward the Built Environment in Airport Access Mode Choice Using Hybrid Choice Modeling

2017 ◽  
Vol 2017 ◽  
pp. 1-13 ◽  
Author(s):  
Mahdi Yazdanpanah ◽  
Mansour Hadji Hosseinlou
Keyword(s):  
Built Environment ◽  
Latent Variable ◽  
Choice Model ◽  
Stated Preference ◽  
Mode Choice ◽  
Residential Areas ◽  
Education Experience ◽  
Access Mode ◽  
Airport Access ◽  
The Impact

Built environment (BE), as an objective variable, plays a substantial role in urban residents’ behavior. However, the perception toward a BE, as a subjective variable, varies among people. To identify the role of perception toward BE, we used a stated preference (SP) survey conducted in January–February 2015 at the Imam Khomeini International Airport (IKIA), Tehran, Iran. The data was drawn from 641 individuals; 359 of them were residents of Tehran. For the estimation of the model, a hybrid discrete choice model was used to capture the latent variable, in addition to mode attributes and trip conditions, with 1795 SP observations. Psychometric questions concerned the perception of ease in access to main streets or highways and good traffic conditions within their residential areas. The results showed that the latent variable (positive perception toward built environment or PBE) had a significant positive effect on people’s willingness to park at the airport. Moreover, the gender, age, marital status, level of education, experience living in a foreign country, and income level also influenced the formation of perception toward the BE and airport transportation mode choice.

Market response to land auction events: a transaction volume approach

2015 ◽  
Vol 8 (1) ◽  
pp. 4-26
Author(s):  
Shuk Man Chiu ◽  
Kwong Wing Chau ◽  
Yung Yau
Keyword(s):  
Housing Market ◽  
Small Body ◽  
Spot Market ◽  
Content Type ◽  
Study Approach ◽  
Short Sale ◽  
Trading Activities ◽  
Secondary Housing Market ◽  
Stock Transaction ◽  
The Impact

Purpose – The purpose of this paper is to investigate the response of transaction volume in Hong Kong’s housing market to public land auctions. Design/methodology/approach – An event study approach with the use of regression analyses was adopted for the empirical study. Findings – Fewer pre-event transactions in the secondary housing spot market come with greater dispersion in the pre-event forecasts of land auction outcomes. Unexpected auction outcomes were also found to minify the post-event transaction volume in the secondary housing spot market, with negative unexpected outcomes exerting a stronger downward force. Research limitations/implications – These findings are contrary to the empirical evidence commonly found in most financial literature on stock transaction volume around corporate earnings announcements with an assumption of negligible transaction costs. Imperfect market structure, differences in sellers’ and buyers’ characteristics and short-sale restriction may explain the disparity. Practical implications – Price in the secondary housing market is more sensitive to negative unexpected land auction outcomes. The analysis results of the current study attest that the impact exerted by the negative unexpected auction outcomes on transaction volume in the housing spot market is stronger than that of positive unexpected auction outcomes. Originality/value – Unlike price and return, transaction volume has not received substantial academic attention in property research. In particular, within the existing small body of transaction volume research, the impact of information events on trading activities has been largely ignored.

Sign in / Sign up

Export Citation Format

Share Document