Determinants of the magnitude of willingness to accept relative to willingness to pay

In this paper we test two hypotheses that stem from the work of Mellers, Chang, Birnbaum and Ordonez ( 1992 ). The first hypothesis is that in a binary gamble, the ratio of WTA to WTP is decreasing in the probability attached to a nonzero event. The second hypothesis is that this ratio is independent of the size of stakes. We find support for the first hypothesis, but mixed support for the second. The second hypothesis holds in the case of gains, but not in the case of losses. Copyright © 2001 John Wiley & Sons, Ltd.     

The role of internal reference prices in consumers' willingness to pay judgments: Thaler's Beer Pricing Task revisited

Alternative reference prices, either displayed in the environment (external) or recalled from memory (internal) are known to influence consumer judgments and decisions. In one line of previous research, internal reference prices have been defined in terms of general price expectations. However, Thaler (Marketing Science 4 (1985) 199; Journal of Behavioral Decision Making 12 (1999) 183) defined them as fair prices expected from specific types of seller. Using a Beer Pricing Task, he found that seller context had a substantial effect on willingness to pay, and concluded that this was due to specific internal reference prices evoked by specific contexts. In a think aloud study using the same task (N = 48), we found only a marginal effect of seller context. In a second study using the Beer Pricing Task and seven analogous ones (N = 144), general internal reference prices were estimated by asking people what they normally paid for various commodities. Both general internal reference prices and seller context influenced willingness to pay, although the effect of the latter was again rather small. We conclude that general internal reference prices have a greater impact in these scenarios than specific ones, because of the lower cognitive load involved in their storage and retrieval.     

Influence of affective meaning on memory for contextual information

In 4 experiments, the authors investigated the influence of the affective meaning of words on memory for 2 kinds of contextual features that differ in the amount of effortful processes they require to be encoded in memory (i.e., color and spatial location). The main results showed that memory for color, in which words were typed, was better for emotional than for neutral words, but only when color information was learned incidentally. In contrast, spatial location of the words was better remembered for emotional than for neutral words whatever the encoding conditions (intentional vs. incidental). It is suggested that the influence of affective meaning on context memory may involve an automatic attraction of attention to contextual features associated with emotional words.     

Influence of contextual information on observers' perceptions of actors' intentions to harm others

Previous examinations of perceptions of aggressive behaviors have used static stimulus presentations (e.g., photographs or slides). This investigation examined the impact of varying amounts of geographical and temporal contextual information on observers' perceptions of actors' intentions to physically and psychologically (intimidate) harm others. Participants (51 elite ice hockey players) were randomly assigned to view one of three video-taped presentations showing eight ice hockey behaviors in either a) a dynamic mode with contextual information, b) a dynamic mode with no context, or c) a static, “freeze-frame” mode. MANOVA results showed that non-aggressive stimuli were perceived as less aggressive, and aggressive stimuli were perceived as more aggressive in dynamic presentations with context than in static presentations. Based on these findings, it is suggested that future research focussing on perceptions of aggressive behavior utilize a dynamic stimulus presentation containing context material. © 1996 Wiley-Liss, Inc.     

A welfare economic approach to measure outcomes in stuttering: Comparing willingness to pay and quality adjusted life years

PurposeThe purpose of this study was to compare two welfare outcome measures, willingness to pay (WTP) and quality adjusted life years (QALYs) gained, to measure outcomes in stuttering.MethodSeventy-eight adult participants (74 nonstuttering and 4 persons with stuttering) completed one face-to-face structured interview regarding how much they would be willing to pay to alleviate severe stuttering in three interventions of varying impact. These data were compared with QALYs gained as calculated from time trade off (TTO) and standard gamble (SG) data.ResultsMean (median) WTP bids ranged from US$ 16,875 (8000), for an intervention resulting in improvement from severe stuttering to mild stuttering, to US$ 41,844 (10,000) for an intervention resulting in a cure of severe stuttering. These data were consistent with mean changes in QALYs for the same stuttering interventions ranging from 2.19 (using SG) to 18.42 (using TTO).ConclusionsThis study presents the first published WTP and QALY data for stuttering. Results were consistent with previous cost-of-illness data for stuttering. Both WTP and QALY measures were able to quantify the reduction in quality of life that occurs in stuttering, and both can be used to compare the gains that might be achieved by different interventions. It is widely believed that stuttering can cause reduced quality of life for some speakers; the introduction into this field of standardized metrics for measuring quality of life is a necessary step for transparently weighing the costs and consequences of stuttering interventions in economic analyses.Educational objectives: The reader will be able to (a) describe the underlying theoretical foundations for willingness to pay and quality adjusted life years, (b) describe the application of willingness to pay and quality adjusted life years for use in economic analyses, (c) compare and contrast the value of willingness to pay and quality adjusted life years in measuring the impact of stuttering treatment on quality of life, (d) interpret quality adjusted life years, and (e) interpret willingness to pay data.     

Status, race, and money: the impact of racial hierarchy on willingness to pay

A deeply entrenched status hierarchy in the United States classifies African Americans as lower status than Caucasians. Concurrently, African Americans face marketplace discrimination; they are treated as inferior and poor. Because having money and spending money signify status, we explored whether African Americans might elevate their willingness to pay for products in order to fulfill status needs. In Studies 1 and 2, explicit activation of the race concept led some African Americans to pay more than they would otherwise pay and also more than Caucasians. Individual differences in perceived status disadvantage and racial identification moderated this result. In Study 3, when race was salient, an overt status threat (inferior treatment in a purchasing context) similarly led African Americans, but not Caucasians, to pay more than they would otherwise pay. This research illustrates how African Americans whose status is threatened use spending as a way to assert status.     

An associative theory of estimating past dates and past prices

The theory—a location theory, in W. J. Friedman’s (1993) terminology—assumes that time information such as the date of an event is increasingly likely to become unavailable with passing time. The theory suggests that when people are asked to date events whose time is unknown, they find and supply time information for the most similar event and context for which it is available. Simulations of the dating process were compared with experimental results and produced similar patterns of error and bias. The theory is extended to explain errors and biases in how people estimate past prices.     

Influence of parent,child, and contextual factors on the quality of the home environment

The purpose of this study was to examine factors related to the quality of the home environments mothers provide for their infants. Data from the National Longitudinal Survey of Youth on 602 mothers with infants between 12 and 23 months of age were used for this study. Consistent with Belsky's model of the determinants of parenting, the quality of the home environment was influenced by maternal characteristics, child characteristics, and contextual factors. A positive linear relation was found between scores on a family risk index and the probability that infants were experiencing a relatively unsupportive home environment.     

Analyzing the returns of the first transaction satisfaction on intention to purchase and willingness to pay: Evidence for new food products

The present study sheds light on the kind of relationships that link first transaction consumer satisfaction (CS), purchase intention, and willingness to pay for new food products. The article presents a comparative evaluation of linear and nonlinear quadratic and cubic specifications used to assess the relationships involved. The study uses empirical evidence from three product‐testing field experiments with consumers in different natural settings such as at‐home and out‐of‐home. Statistical tests with structural equation modeling reveal that, for new food products, the CS–purchase intention relationship is characterized by a nonlinear functional form with increasing marginal returns, while the CS–willingness to pay relationship is defined by a linear functional form with constant marginal returns. The study contributes to the existing body of knowledge that so far has mainly described the relationship between cumulative CS and profit chain outcomes in the context of established products (brands). We discuss the implications for managers responsible for launching new food products and give hints on allocating resources to the most probable customers. Copyright © 2016 John Wiley & Sons, Ltd.     

Effects of stimulus and contextual information on the lexical decision process

Two experiments were conducted to investigate context effects on the lexical decision process. In both experiments, observers classified letter strings as words or nonwords following the presentation of context in the form of an incomplete sentence. In Experiment 1, the predictability of congruous word stimuli and their frequency of occurrence in printed English were varied. These two factors had independent and additive effects on decision latencies. Stimulus quality, word frequency, and semantic congruity (i.e., congruous vs. incongruous) between the context and the stimulus were varied in Experiment 2. The effects of semantic congruity and word frequency on decision latencies combined additively, as did the effects of semantic congruity and stimulus quality. Two complementary mechanisms were proposed within the framework of a modified version of Becker’s verification model to account for the differential effects of single-word and sentence context priming on the lexical decision process.     

Effects of rater conscientiousness on evaluations of task and contextual performance of older and younger co-workers

The possibility for age discrimination and stereotypes to affect performance evaluations is rising. Although careful evaluations might be expected from conscientious raters, little is known about whether they might show more or less bias towards certain age groups. Therefore, in our study using a time-lagged design, we investigated the effects of rater conscientiousness on the performance evaluations of younger and older actual co-worker (N = 242). We found that raters who were more conscientious provided higher ratings for older workers than for younger workers on task performance and organizational citizenship behaviours. Specifically, we tested the model of mediated moderation, in which the relation between rater conscientiousness and ratee age predicts ratee-perceived conscientiousness, which in turn predicts performance ratings. The model was significant for older ratees, but not for younger ratees. We discuss our results in terms of the “similar to me” effects and implications for organizational practices.     

Ghosts of the past and dreams of the future: the impact of temporal focus on responses to contextual ingroup devaluation

The authors investigated the impact of temporal focus on group members' responses to contextual ingroup devaluation. Four experimental studies demonstrated that following an induction of negative ingroup evaluation, participants primed with a past temporal focus reported behavioral intentions more consistent with this negative appraisal than participants primed with a future temporal focus. This effect was apparent only when a negative (but not a positive) evaluation was induced, and only among highly identified group members. Importantly, the interplay between temporal focus and group identification on relevant intentions was mediated by individual self-esteem, suggesting that focus on the future may be conducive to separating negative ingroup appraisals from individual self-evaluations. Taken together, the findings suggest that high identifiers' responses to ingroup evaluations may be predicated on their temporal focus: A focus on the past may lock such individuals within their group's history, whereas a vision of the future may open up opportunities for change.     

Signaling can increase consumers' willingness to pay for green products. Theoretical model and experimental evidence

Many green products are costlier than their nongreen counterparts, for a variety of reasons. This “green premium” is a key challenge marketers face when targeting consumers with these green products. A potential solution to this issue is provided by signaling theory. According to the theory, green products can have a signaling benefit. This benefit acts as an incentive for consumers to pay a premium for environmentally friendly products that can even out their price disadvantage (the green signaling hypothesis). Previous studies have tested the green signaling hypothesis with hypothetical buying decisions. The research at hand tests the green signaling hypothesis with incentive‐compatible purchase decisions in a laboratory setting with student subjects. As predicted, subjects exhibit a higher willingness to pay for green products when the product choice (a nongreen product vs. a costlier green counterpart) is public rather than private. The results also suggest that green signalers are treated more favorably in social interactions. The main result is that a signaling benefit can even out moderate green premiums. One implication of this is the idea that marketers should design green products that are costlier than their nongreen counterparts in a way that renders them clearly recognizable as green. At the same time, marketers should avoid marketing everyday green products with a high green premium.     

The effects of contextual information and gender on the prediction of hypnotic susceptibility

Council, Kirsch, and Hafner (1986) obtained empirical support for the hypothesis that significant correlations between questionnaire measures of absorption and hypnotic susceptibility are an artifact of subjects' beliefs about their own hypnotizability. We tested this hypothesis in a two-session experiment. During Session 1, subjects completed questionnaire measures of absorption, mystical experience, daydreaming frequency, and paranormal beliefs. During Session 2, subjects were tested for hypnotic susceptibility. Subjects were also exposed to one of three information manipulations: They were told about hypnotic testing either before or after filling out the questionnaires or were not told about hypnotic testing. The information manipulation moderated the prediction of susceptibility by the questionnaire measures for women, but not for men. For women, scores on the absorption questionnaire predicted susceptibility only when subjects were informed about hypnotic testing. In the told-after condition, this effect generalized to all of the remaining questionnaire measures. For men, none of the questionnaires was a reliable predictor of susceptibility.     

Use of contextual information in the formation of cognitive maps

To investigate the importance of context and presentation of serial order of information in the formation of cognitive maps, subjects were shown slides of pairwise relationships between items and then asked to construct a map. Two context conditions were used: a spatial condition in which the item pairs appeared in the same location on the screen as they would appear in a slide of the entire map and a nonspatial condition in which all item pairs appeared centered on the screen. Information order was either chain, in which new information could be immediately added to the representation, or nonchain, in which brief storage was required. The results indicated that both spatial context and chain order enhance performance. In addition, spatial information reduces the effect of serial order, perhaps by allowing subjects to relate new information to the context itself if they cannot relate it to previous information.     

Relative contributions of expressive behavior and contextual information to the judgment of the emotional state of another

This study used a technique for assessing the relative impact of facial-gestural expressions, as opposed to contextual information regarding the elicitor and situation, on the judgment of emotion. In Study 1, 28 undergraduates rated videotapes of spontaneous facial-gestural expressions and separately rated the emotionally loaded color slides that elicited those expressions. The source clarities of the expressions and slides were matched using correlation and distance measures, and 18 expressions and 9 slides were selected. In Study 2, 72 undergraduate receivers were shown systematic pairings of these expressions and slides and rated the emotional state of the expresser, who was supposedly watching that slide under public or private situational conditions. Expressions were found to be more important sources for all emotion judgments. For female receivers slides were relatively more important in the public than in the private situation.     

The effect of spatial and nonspatial contextual information on visual object memory

Recent research has found visual object memory can be stored as part of a larger scene representation rather than independently of scene context. The present study examined how spatial and nonspatial contextual information modulate visual object memory. Two experiments tested participants’ visual memory by using a change detection task in which a target object's orientation was either the same as it appeared during initial viewing or changed. In addition, we examined the effect of spatial and nonspatial contextual manipulations on change detection performance. The results revealed that visual object representations can be maintained reliably after viewing arrays of objects. Moreover, change detection performance was significantly higher when either spatial or nonspatial contextual information remained the same in the test image. We concluded that while processing complex visual stimuli such as object arrays, visual object memory can be stored as part of a comprehensive scene representation, and both spatial and nonspatial contextual changes modulate visual memory retrieval and comparison.     

Hemispheric sensitivities to lexical and contextual information: evidence from lexical ambiguity resolution

The present study examined the manner in which both hemispheres utilize prior semantic context and relative meaning frequency during the processing of homographs. Participants read sentences biased toward the dominant or the subordinate meaning of their final homograph, or unbiased neutral sentences, and performed a lexical decision task on lateralized targets presented 250ms after the onset of the sentence-final ambiguous prime. Targets were either related to the dominant or the subordinate meaning of the preceding homograph, or unrelated to it. Performance asymmetry was found in the absence of a biasing context: dominant-related targets were exclusively facilitated in the RVF/LH, whereas both dominant- and subordinate-related targets were facilitated in the LVF/RH. Performance symmetry was found in the presence of a biasing context: dominant-related targets were exclusively activated in dominant-biasing contexts, whereas both dominant- and subordinate-related targets were facilitated in subordinate-biasing contexts. The implications of the results for both general and hemispheric models of word processing are discussed.     

The relationship between attitudes toward suicide and willingness to pay for suicide prevention: a cross-sectional study in Japan

There are gaps in our knowledge of the role attitudes toward suicide play in determining people’s willingness to participate (WTP) for suicide prevention. We conducted a large nationwide cross-sectional study with the aim of clarifying the relationship between WTP for reducing suicide risk and attitudes toward suicide. Ordinal logistic regression analyses (n = 1771) showed that there were significant associations of WTP for suicide prevention with ‘Suicide as a right’ (β = ?.15, 95% CI: ?.25 to ?.04, p = .006), ‘Preventability/readiness to help’ (β = .81, 95% CI: .69–.94, p < .001) and ‘Common occurrence’ (β = .32, 95% CI: .19–.46, p < .001). ‘Incomprehensibility/unpredictability’ did not show an association with WTP. Taxpayer acceptance for suicide prevention is more likely to be achieved through provision of information that increases endorsement of ‘preventability/readiness to help’ and ‘common occurrence’ factors, and decreases ‘suicide as a right’ scores.