Do consumers with high need for uniqueness pay more a study of the relationship between consumer need for uniqueness (CNFU) and willingness to pay (WTP)

Abstract

Purpose- The main objective of this study is to understand the impact of Consumer Need for Uniqueness (CNfU) on purchasing behavior. This impact is examined from a Willingness to Pay (WTP) perspective and it is aimed to understand whether and how CNfU is related with creating a consumer surplus for the brands. Methodology- The paper uses survey-based data and a combination of statistical techniques, such as Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM). 376 participants responded to the survey shared online. Their behavior was measured by their past purchase behavior, which is, choosing a Vespa scooter or choosing a Honda scooter showing their willingness to pay more for a scooter. Findings- It is revealed that creative choice counter conformity has positive influence on willingness to pay more for a prestigious motorcycle brand (buying a Vespa scooter instead of a Honda scooter, in this case). On the other hand, unpopular choice counter conformity and avoidance of similarity has no effect on choosing between a prestigious and a conventional budget motorcycle. Conclusion- Possible conclusions might be that; 1) Creative choice has a positive connotation to it compared to unpopular choice and avoidance of similarity 2) avoidance of similarity and unpopular choice counter conformity tendencies may not have been activated by this specific type of product 3) unconventional choice is not exclusively dependent on CNfU but some other factors such as sensation-seeking and risk-taking. Lastly, the findings can definitely not be generalized to other products and services. Keywords: Consumer need for uniqueness, customer behavior, willingness to pay, CNfU, NfU. JEL Codes: M30, M31, L11