Influence of contextual information and past prices on the willingness to pay and expected quality evaluations

This study conducted two experiments to assess consumers' willingness to pay or the expected quality in response to different levels of contradictory contextual information (regarding price and quality) and the presence of anchors in the form of past price paid. First, the results show that the contextual information was decisive in the formation of reference prices that affect the willingness to pay. Second, the anchors did not influence the evaluation of the willingness to pay and the expected quality. And third, it was observed that the coherence of the contextual information (price–quality correlation) performs a moderating role in the relation between reference prices and expected quality. These results suggest that anchors are less important than contextual information in the evaluation process of the willingness to pay and the expected quality, and that therefore neither an adjustment nor a priming mechanism is activated. We found that the coherence of the contextual information influences how individuals evaluate a service. Copyright © 2016 John Wiley & Sons, Ltd.     

引入中立方参照：对禀赋效应的再探讨

在以往禀赋效应研究的基础上, 本研究引入中立方估价值作为参照, 在时间维度上探讨了禀赋效应的变化趋势, 并尝试延伸禀赋效应的定义。研究发现, 随着卖方拥有物品的时间延长, 买卖双方的估价呈下降趋势, 卖方的估价总是显著高于买方, 但买卖双方的估价之差不随卖方拥有物品的时间延长发生变化; 以中立方的估价为参照, 在较短的时间内卖方的估价倾向于理性, 在较长的时间内买方的估价倾向于理性; 卖方的估价在时间水平上相对于中立价格呈递增性, 而买方的估价相对于中立价格呈递减性。引入中立方再探讨禀赋效应并没有否定它的存在, 而且能够更好地解释生活中的非理性行为。     

Reserve price and competing bids: Reference points for product evaluations in online auctions?

With an increasing number of products sold in online auctions, the effect of reference points on consumers' product valuations has received much attention in the literature. Two potentially relevant factors affecting bidders' preferences are the sellers' reserve price and the competing bids by other bidders. The current evidence regarding these reference points is mixed. We argue that a focus on studying bids prevents a clear identification of reference point effects. Directly observing product valuations, in two experiments, we find that willingness to pay in online auctions is affected by both reserve prices and competing bids, supporting the constructed values paradigm. Copyright © 2015 John Wiley & Sons, Ltd.     

Overbidding in Value Elicitation: When Consumers Report Inflated Reservation Prices,and What to Do About It

A common goal of value elicitation is to determine consumers’ reservation prices (i.e., maximum willingness to pay) for goods and services. Because the results of such studies are often used as inputs in decision making, it is important to understand when reservation prices estimated in value elicitation studies are likely to be biased, and how to correct for such biases. Experiment 1 of this study investigated attributes of the context in which consumers’ values are elicited that may lead to consumers overbidding their true reservation prices. The results demonstrate that the likelihood of overbidding is high when consumers perceive that they will not have to pay their stated reservation price, and particularly high when they also perceive that stating a high reservation price will increase the likelihood of subsequently receiving a good. Experiment 2 demonstrated that priming budget considerations prior to value elicitation produced value estimates closer to the actual price of a good compared to a condition in which budget was not primed. Implications for the practice of value elicitation and the use of estimates provided by such studies in decision making are discussed.     

禀赋效应对产品更换决策的影响

以禀赋效应理论为研究基础, 通过两个情景实验对产品更换过程中买卖双方的决策心理进行了研究。实验1表明, 在以旧换新活动中新产品的买方对旧产品的价格有高估的倾向, 对新产品的价格有低估的倾向; 相反, 新产品的卖方对旧产品的价格有低估的倾向, 而对于新产品的价格有高估的倾向, 这说明产品更换决策中存在着双重的禀赋效应。实验2表明, 新产品的买方对旧产品的属性评价显著高于新产品的卖方, 对新产品的属性评价显著低于新产品的卖方, 说明属性评价也存在禀赋效应的特征。双重禀赋效应的存在从消费者行为的角度解释了为什么消费者会出现创新抵制行为。     

The Role of Brand Familiarity in Internal Reference Price Formation: An Accessibility-Diagnosticity Perspective

Very little research focused on the process by which internal reference prices are formed and used by consumers making price judgments. The accessibility-diagnosticity model is proposed as a parsimonious theoretical framework that resolves some conflicts in prior research and provides a foundation for future research on internal reference prices. This model is used to evaluate the role of brand familiarity and involvement on the formation and use of internal reference price standards. Empirical results show that (1) involvement is a better predictor of confidence in internal reference prices than brand familiarity, and (2) in forming internal reference price estimates, the offering price is discounted more for unfamiliar brands than familiar brands, but only when involvement is low. When involvement is high, the effect of brand familiarity on reference price estimates disappears. Implications for future research on internal reference price effects and for promotion practice are discussed.     

Are you willing to pay the price? The impact of corporate social (ir)responsibility on consumer behavior towards national and foreign brands

This research examines how the country of origin (national vs. foreign) affects the relation between corporate social responsibility (CSR) and consumers' willingness to pay and purchase intention. In the study, we adopted a first‐price sealed bid auction approach, using money in a “real‐world” setting. The results showed that CSR/corporate social irresponsibility (CSIR) affects consumer behavior and, particularly, consumers' willingness to pay and purchase intention. The study supports both the moderation hypothesis of country of origin in the relationship between CSR/CSIR and willingness to pay and between CSR/CSIR and purchase intention. In the globalization context, these results have important implications for brands' communication and marketing strategy and can stimulate important insights in organizations. Future research directions and limitations are also discussed. Copyright © 2016 John Wiley & Sons, Ltd.     

The role of affect in the WTA/WTP disparity

Four studies demonstrated robust within‐ and between‐subject differences in willingness‐to‐pay (WTP) and willingness‐to‐accept (WTA) measures of the value of lottery tickets. Buyers and sellers attended to different numerical cues and interpreted the same numbers differently when setting these two kinds of monetary values. Affective influences appeared to guide the valuation process. Buyers with stronger positive feelings about owning a ticket were willing to pay more for a ticket; sellers with stronger negative feelings about no longer having a ticket required a greater minimum payment in exchange for their ticket. In addition, the WTA/WTP disparity tended to be greater for more affectively‐laden lottery tickets. The results suggest that WTA and WTP prices are constructed using salient numerical cues and affective feelings. Copyright © 2003 John Wiley & Sons, Ltd.     

Willingness to Pay for Local Public Goods: Some Evidence From the Nonprofit Theatre Sector

It is clearly the case that many people may derive option benefits from the embodiment of creativity in cultural products. This article describes a method that can be used to offer more support for a local public good—namely local theatre. This is the application of willingness to pay (WTP) pricing. Survey evidence from two nonprofit regional theatres in the UK were used to examine determinants of the WTP function for local theatre. A WTP equation was estimated and showed the following: Female respondents offered much lower prices; there was a positive influence of income on willingness to pay with a small elasticity; loyalty to the theatre contributed to higher price offers and perceived characteristics poverty of the theatre productions was so strong that it would cancel this out where a person has such feelings. The price terms show that the offered price is linked positively to perceptions of the normal price at the theatre and reasonable prices for other events.     

On the nonautomaticity of visual word processing: electrophysiological evidence that word processing requires central attention

The present study used event-related potentials (ERPs) to determine the degree to which people can process words while devoting central attention to another task. Experiments 1-4 measured the N400 effect, which is sensitive to the degree of mismatch between a word and the current semantic context. Experiment 5 measured the P3 difference between low- and high-frequency words. Because these effects can occur only if a word has been identified, both ERP components index word processing. The authors found that the N400 effect (Experiments 1, 3, and 4) and the P3 difference (Experiment 5) were strongly attenuated for Task 2 words presented nearly simultaneously with Task 1. No such attenuation was found when the Task 1 stimulus was presented but required no response (Experiment 2). Strong attenuation was also evident when the Task 2 word was presented before the Task 1 stimulus (Experiment 4), suggesting that central resources are not allocated to stimuli first-come, first-served but rather are strategically locked to Task 1. The authors conclude that visual word processing is not fully automatic but rather requires access to limited central attentional resources.     

时间分配的执行功能:双重效价联合任务的证据

采用内隐联想测验的修订版本双重效价联合任务范式,利用ERP技术探究不同时间分配倾向个体在执行冲突和转换任务时的执行功能,以揭示不同时间分配倾向个体在相容和不相容任务过程中脑内时程的动态变化。研究结果发现,多重组个体显示出更快的反应时;ERP结果表明,相比于多重组,单一组在不相容任务中比在相容任务中诱发了更大的N170,说明多重组个体可能更善于同时执行多项任务,而单一组执行冲突任务可能需要投入更多的注意资源。同时在认知加工的晚期阶段单一组比多重组诱发了更大的LPP,提示单一组需要更强的认知控制加工。     

Salesperson time perspectives and customer willingness to pay more: roles of intraorganizational employee navigation,customer satisfaction,and firm innovation climate

This research aims to fill a critical gap in the sales literature by proposing a relationship-based model of customer willingness to pay more, involving salesperson time perspectives (i.e., long-term perspective and short-term perspective), intraorganizational employee navigation, and customer satisfaction with the salesperson. We also examine the moderating role of firm innovation climate. Multisource survey data were collected from 204 salespeople in a business-to-business sales context along with external ratings from customers of these salespeople three months later. The findings indicate that both long- and short-term perspectives have positive effects on intraorganizational employee navigation and customer satisfaction, which, in turn, positively affect customer willingness to pay more. In addition, short-term perspective has a stronger impact than long-term perspective on intraorganizational employee navigation. Further, the effect of long-term perspective on customer satisfaction is strengthened by the innovation climate of the firm, whereas the effect of short-term perspective on customer satisfaction is weakened by it.     

Tactile contact and evaluation of the toucher

The authors investigated the effect of touch on a person's evaluation of the toucher in a field setting. In the context of selling a 2nd-hand car, the authors instructed a male seller to slightly touch (or not touch) a man who was interested in the car. After the participant left the seller, a female confederate solicited him, asking him to evaluate the car seller on various dimensions. The results showed that for each dimension that the participants evaluated, the touch condition was associated with statistically higher positive evaluations of the toucher than the no-touch control condition.     

Are we all in this together?: co-victimization,inclusive social identity and collective action in solidarity with the disadvantaged

Common experience of injustice can be a potent motivator of collective action and efforts to achieve social change - and of such efforts becoming more widespread. In this research, we propose that the effects of co-victimization on collective action are a function of inclusive social identity. Experiment 1 (N= 61) demonstrated that while presence (compared to absence) of co-victimization positively predicted consumer (i.e., participants) willingness to act collectively in solidarity with sweatshop workers, this effect was mediated by inclusive social identity. In Experiment 2 (N= 120), the salience of inclusive social identity was experimentally manipulated and interacted with co-victimization to predict collective action. When inclusive social identity was salient, co-victimization enhanced collective action, including willingness to pay extra for products made ethically and in support of fair wages for workers. In contrast, collective action was attenuated when co-victimization took place in the absence of inclusive social identity. Implications for understanding when co-victimization is transformed into common fate and political solidarity with the disadvantaged are discussed.     

Antiunion and prounion attitudes as predictors of college students' willingness to join a union

The authors proposed a model of antiunion attitudes and prounion attitudes as predictors of American college students' willingness to join a union (N = 1,245). Structural equation modeling results indicated that antiunion and prounion attitudes are moderately related and both show similar strength in predicting willingness to join. In addition, a general antiunion factor is shown to underlie specific antiunion attitudes, whereas items related to prounion attitudes are shown to reflect a general prounion factor. The utility of the model was supported based on initial and cross-validation samples (ns = 623 and 622, respectively). Implications for measuring union attitudes and recruiting union members among college-educated workers are discussed.     

When underadditivity of factor effects in the Psychological Refractory Period paradigm implies a bottleneck: Evidence from psycholinguistics

The Psychological Refractory Period (PRP) paradigm is a dual-task procedure that can be used to examine the resource demands of specific cognitive processes. Inferences about the underlying processes are typically based on performance in the second of two speeded tasks. If the effect of a factor manipulated in Task 2 decreases as the stimulus onset asynchrony (SOA) between tasks decreases (underadditivity), the normative inference is that the effect of this factor occurs prior to a limited-capacity central processing mechanism. In contrast, if the effect of a factor is additive with SOA then the inference is that this indexes a process that either uses a limited-capacity central processing mechanism or occurs after some process that uses this mechanism. A heretofore unidentified exception to this logic arises when Task 2 involves two separate processes that operate in parallel, but compete. Interference with one process in Task 2 because of work on Task 1 will eliminate or reduce competition within Task 2 and is hence manifest as an underadditive interaction with decreasing SOA. This is illustrated here by reference to a PRP experiment in which the ubiquitous effect of spelling-to-sound regularity on reading aloud time is eliminated at a short SOA and by consideration of three converging lines of investigation in the PRP paradigm when Task 2 involves reading aloud.     

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.     

A contingent view of reactions to objective pay conditions: interdependence among pay structure characteristics and pay relative to internal and external referents

The authors studied the general proposition that because social comparisons are so central to how people react to pay, the effect of an important pay condition likely depends on a social pay comparison that is relevant to that condition. To investigate this, the authors used actual pay data on more than 2,000 public school teachers across more than 400 school districts and tested whether pay equity perceptions resulted from interactions among objective measures of structural (pay dispersion, entry-level pay, pay range maximum, external competitiveness) and individual (pay relative to internal referents, pay relative to external referents) pay conditions. Cross-level interactions indicated that pay relative to internal referents moderated how pay structure conditions related to pay equity perceptions. Additionally, within-level interactions indicated that the effect of employee standing in the external pay hierarchy depended on where one stood in the internal pay hierarchy; this dynamic emerged both for individual-level measures of current standing and for organization-level measures that suggested future standing.     

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.     

Representation is representation of similarities

Advanced perceptual systems are faced with the problem of securing a principled (ideally, veridical) relationship between the world and its internal representation. I propose a unified approach to visual representation, addressing the need for superordinate and basic-level categorization and for the identification of specific instances of familiar categories. According to the proposed theory, a shape is represented internally by the responses of a small number of tuned modules, each broadly selective for some reference shape, whose similarity to the stimulus it measures. This amounts to embedding the stimulus in a low-dimensional proximal shape space spanned by the outputs of the active modules. This shape space supports representations of distal shape similarities that are veridical as Shepard's (1968) second-order isomorphisms (i.e., correspondence between distal and proximal similarities among shapes, rather than between distal shapes and their proximal representations). Representation in terms of similarities to reference shapes supports processing (e.g., discrimination) of shapes that are radically different from the reference ones, without the need for the computationally problematic decomposition into parts required by other theories. Furthermore, a general expression for similarity between two stimuli, based on comparisons to reference shapes, can be used to derive models of perceived similarity ranging from continuous, symmetric, and hierarchical ones, as in multidimensional scaling (Shepard 1980), to discrete and nonhierarchical ones, as in the general contrast models (Shepard & Arabie 1979; Tversky 1977).