Putting Your Money Where Your Mouth Is: The Value of Low Purchase Intention Consumers to Product Pricing

摘要: Hypothetical bias is a common research problem in measuring intentions. This study examines differences individuals' hypothetical and nonhypothetical willingness to pay (WTP) based on purchase intention level. The purpose of Study 1 see if affecting all groups individuals when segmented by contingent valuation method (CVM) was used assess intentions WTP for an environmentally friendly (EF) offering. Individuals then participated auction that required them bid the same offering, thus requiring actual monetary commitment. Through segmenting into three (high, moderate, low), biases were found be positively related stated High moderate intenders significantly overstated their WTP. However, low did not. Further, no significant existed between groups. price willing through CVM represented closely what they rest market practice. The 2 examine several reasons why higher may overstating WTP, with normative pressure social desirability taken consideration. indicated EF non-EF product, auction. again both products, whereas Results suggest contribute products carry dimension (EF products). Controlling these two factors eliminated For not have component (non-EF products), controlling gap amounts. A main implication from this universal phenomenon does operate equally intenders. Marketers want consider only using lower pricing estimates new especially those component. has received much criticism produced nearly exact intender group reliable