Consumers' willingness to pay using an experimental auction methodology: applications to brand equity

2014 ◽  
Vol 38 (4) ◽  
pp. 435-440 ◽  
Author(s):  
Yan Ming Li ◽  
Joan L. Ellis
Keyword(s):  
Willingness To Pay ◽  
Brand Equity ◽  
Experimental Auction

scholarly journals Managing transportation externalities in the Pyrenees region: Measuring the willingness-to-pay for road freight noise reduction using an experimental auction mechanism

2018 ◽  
Vol 202 ◽  
pp. 631-641 ◽  
Author(s):  
Laurent Denant-Boemont ◽  
Javier Faulin ◽  
Sabrina Hammiche ◽  
Adrian Serrano-Hernandez
Keyword(s):  
Willingness To Pay ◽  
Noise Reduction ◽  
Experimental Auction ◽  
Auction Mechanism ◽  
Transportation Externalities ◽  
Road Freight

U.S. consumer preference and willingness-to-pay for domestic corn-fed beef versus international grass-fed beef measured through an experimental auction

Agribusiness ◽  
2002 ◽  
Vol 18 (4) ◽  
pp. 491-504 ◽  
Author(s):  
Wendy J. Umberger ◽  
Dillon M. Feuz ◽  
Chris R. Calkins ◽  
Karen Killinger-Mann
Keyword(s):  
Willingness To Pay ◽  
Consumer Preference ◽  
Experimental Auction

B2B services: linking service loyalty and brand equity

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

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

Consumers’ willingness to pay for light, organic and PDO cheese

2016 ◽  
Vol 118 (3) ◽  
pp. 560-571 ◽  
Author(s):  
Tiziana de-Magistris ◽  
Azucena Gracia
Keyword(s):  
Willingness To Pay ◽  
Personal Characteristics ◽  
Consumer Preference ◽  
Experimental Auction ◽  
Content Type ◽  
Market Simulation ◽  
Sheep Milk ◽  
Health Related ◽  
University Level ◽  
Real Market

Purpose – The purpose of this paper is to assess consumers’ willingness to pay (WTP) for three different food claims on semi-cured, pasteurized sheep milk cheese. In particular, the authors used a health-related claim (the nutritional claim indicating a reduced fat content: “light”), a regional claim (“designation of origin – PDO”) and an organic claim (the European organic logo). Moreover, the authors investigated whether consumers’ personal characteristics could influence their WTP for those types of cheese. Design/methodology/approach – A home-grown experimental auction was applied in Spain during Spring 2012. The authors opted to use the nth random price with repeated rounds and without price feedback. Findings – The results show that consumers were willing to pay more for PDO cheese, followed by organic and light cheese. Moreover, respondents who were female, older and with a university-level education showed some environmental concerns, influencing their WTP for different cheeses. Originality/value – Empirical evidence on consumers’ preferences for PDO, organic and nutritional claims, evaluated jointly, is lacking in Spain. Moreover, the home-grown auction has several merits in terms of real market simulation and consumer preference application.

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

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

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

European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets: Reply

2005 ◽  
Vol 87 (1) ◽  
pp. 258-260
Author(s):  
Frode Alfnes ◽  
Kyrre Rickertsen
Keyword(s):  
Willingness To Pay ◽  
Experimental Auction ◽  
Auction Markets

scholarly journals Consumer Perception of Skinning Injury in Sweetpotatoes and Implications for Marketability: An Experimental Auction

2019 ◽  
Vol 29 (4) ◽  
pp. 468-475
Author(s):  
Alba J. Collart ◽  
Stephen L. Meyers ◽  
Jason K. Ward
Keyword(s):  
Image Analysis ◽  
Willingness To Pay ◽  
Ipomoea Batatas ◽  
Consumer Perception ◽  
Experimental Auction ◽  
Storage Roots ◽  
Incentive Compatible ◽  
Price Premiums

Skinning of sweetpotato (Ipomoea batatas) storage roots is one of the greatest concerns of sweetpotato producers. Although skinning injury is very common, the severity of the injury can vary widely. At an undefined threshold, sweetpotatoes with skinning injury are no longer sold for fresh consumption. The objectives of this study were to examine how skinning injury influences consumers’ willingness-to-pay (WTP) for sweetpotatoes and to identify differences in valuations when the extent of skinning injury is labeled. Image analysis was used to quantify skinning injury and then an incentive-compatible, nonhypothetical laboratory experimental auction was conducted to collect data on consumers’ WTP for five categories of sweetpotatoes: 0% to <1% skinning injury, 1.0% to 3.0%, 3.1% to 5.0%, 5.1% to 7.5%, and 7.6% to 10.0%. On average, consumers were willing to pay the most for sweetpotatoes with 0% to <1% skinning injury (up to $1.51/lb to $1.67/lb) and the least for sweetpotatoes with 7.6% to 10% (up to $0.76/lb to $0.85/lb), yet mean WTP values were nonzero for all skinning levels. Moreover, when the extent of skinning was labeled (relative to when they bid blindly), consumers were willing to pay price premiums for sweetpotatoes with low skinning injury levels (0% to 5%) and discounted sweetpotatoes with the highest skinning injury level (7.6% to 10.0%), suggesting that skinning levels of 7.6% and above may not be acceptable by consumers.

scholarly journals INVESTIGATION OF CONSUMER ATTITUDES FROM THE PERSPECTIVE OF CONSUMER BASED BRAND EQUITY ON TRACKSUIT BRANDS

2017 ◽  
Vol 2 (105) ◽  
pp. 65-70
Author(s):  
Yavuz Yıldız ◽  
Alper Kinden
Keyword(s):  
Willingness To Pay ◽  
Brand Equity ◽  
Sampling Method ◽  
Positive Impact ◽  
Brand Name ◽  
Business Outcomes ◽  
Real Value ◽  
Del Rio ◽  
High Level ◽  
Selection Of

Background. Brand equity has a positive impact on consumers’ selection of products and services, their perception, purchasing intentions, their willingness to pay more for brands. Brand equity is designed to reflect the real value from the perspective of consumer that a brand name holds for the products and services. Measuring brand equity is important because brands are believed to be strong influencers of business outcomes, such as sales and market share. The aim of this study was to describe the brand equity of tracksuits and investigate the purchasing behaviours of the tracksuit consumers. Methods. The research sample consisted of 250 athletes who were selected via random sampling method. “Consumer-Based Brand Equity Scale”, developed by Vazquez, del Rio, and Iglesias (2002), was implemented in order to measure consumer-based brand equity with regard to tracksuit brands. Results. Results of the study showed that the consumer based brand equity did not differ by gender, age, tracksuit usage purpose, tracksuit buying timing. However, it was found that the consumer based brand equity was significantly different in the number of tracksuits owned and the amount of payment. Conclusion. High brand equity brings the willingness to pay more for that brand. Consequently, it can be suggested that high level of consumer based brand equity enhances the amount of purchases and willingness to pay more. Although there are many studies on the brand equity in sports, such as shoes and teams, we have found no research on tracksuits. This research focuses on tracksuits’ brand equity. The results of this research contribute to sports marketing literature.

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