Higher Willingness To Pay Research Articles

Willingness-to-pay for a hypothetical Ebola vaccine in Indonesia: A cross-sectional study in Aceh.

Background: Some Ebola vaccines have been developed and tested in phase III clinical trials. However, assessment of whether public have willingness to purchase or not, especially in unaffected areas, is lacking. The aim of this study was to determine willingness to pay (WTP) for a hypothetical Ebola vaccine in Indonesia. Methods: A cross-sectional study was conducted from 1 August to 30 December 2015 in five cities in Aceh province of Indonesia. Patients' family members who visited outpatient departments were approached and interviewed about their sociodemographic characteristics, knowledge of Ebola, attitude towards vaccination practice and their WTP for a hypothetical Ebola vaccine. A multivariable linear regression model assessed the relationship between these explanatory variables and WTP. Results: During the study, 500 participants were approached and interviewed. There were 424 (84.8%) respondents who completed the interview and 74% (311/424) expressed their acceptance for an Ebola vaccine. There were 288 participants who were willing to pay for an Ebola vaccine (92.6% out of 311). The mean of WTP was US$2.08 (95% CI: 1.75-2.42). The final multivariable model indicated that young age, high educational attainment, working as a private employee, entrepreneur or civil servant (compared to farmers), being unmarried, and residing in a suburb (compared to a city) were associated with higher WTP. Conclusions: Although the proportion of the participants who would accept the Ebola vaccine was relatively high, the amount they were willing to pay for Ebola vaccine was very low. This finding would indicate the need of subsidies for Ebola vaccine in the country.

Awareness, acceptability, and willingness-to-pay for digital physiotherapy among patients in selected hospitals in a South-Western State of Nigeria

Background: Digital physiotherapy in line with global health coverage has become a salient field of physiotherapy practice where routine and innovative forms of information and communications technology are employed with the aim of facilitating effective delivery and access to physiotherapeutic services and resources. This study evaluated and determined the socio-demographic correlates of awareness, acceptability, and willingness-to-pay (WTP) for digital physiotherapy among patients. Materials and Methods: A total of 92 consenting patients who were 18 years and older responded in this cross-sectional study. An adapted tool on awareness, acceptability, and WTP for telemedicine services was adapted for use in this study. Data were analyzed using descriptive statistics of mean, standard deviation, and percentages; inferential statistics of Chi-square was used for test of association. Alpha level was set at P < 0.05. Results: The mean age of the respondents was 52.40 ± 15.62 years. There was a high rate of unawareness (91.3%), moderate-to-high acceptability (87.0%) and high WTP (88.0%) for digital physiotherapy, respectively. There was no significant association between the socio-demographic factors and each of acceptability and WTP for digital physiotherapy (P > 0.05). Conclusion: In spite of low awareness of digital physiotherapy, Nigerian patients attending physiotherapy clinics are willing to accept and pay for its use irrespective of socio-demographic variations.

When East meets West: Understanding residents’ home energy management system adoption intention and willingness to pay in Japan and the United States

A Home Energy Management System (HEMS) is a system for increasing energy efficiency and demand flexibility. Despite the steady advances in HEMS technology, there are still several barriers impeding its acceptance. This paper investigates the multifaceted factors influencing residents' willingness to adopt and pay for HEMS in New York (N.Y.) and Tokyo areas. Our findings suggest that perceived usefulness, a favorable attitude toward HEMS, and social norms are positively associated with adoption intention in both areas. While lacking perceived behavioral control is a barrier for adoption intention in Tokyo, privacy and cybersecurity concerns are barriers for N.Y. residents. The majority of residents indicate a strong or moderately strong adoption intention even when their cost concerns are great. Cost concerns, however, are associated with low willingness to pay (WTP) in both areas, as is perceived ease of use. Technology anxiety only negatively affects WTP in Tokyo. Positive attitudes, social norms, and perceived usefulness are positive predictors of WTP in both areas. Younger and higher-income were associated with higher WTP only in N.Y. Unexpectedly, trust in utilities is not a significant predictor of adoption intention or WTP. Finally, this study provides useful policy recommendations for promoting HEMS in two distinct cultures.

Assessing Consumer Demand for Georgia Lavender-Based Products

AbstractTo further improve the understanding of promoting locally grown lavender, we examine consumer willingness to pay (WTP) for three lavender-based products: lavender bundles, culinary lavender, and lavender oil. We evaluate an online sample located in the southeast using a double-bounded dichotomous choice contingent valuation survey. Lavender bundles have the highest WTP, followed by oil and culinary lavender. Certain marketing factors result in higher WTP, including product familiarity, familiarity with the Georgia Grown program, and shopping frequency at farmers’ markets. This study provides a better understanding of the opportunity for small-scale farmers to market specialty crops such as lavender.

Public preferences for setting up a biomass power plant to combat open-field burning of rice crop residues: A case study of district Sangrur, Punjab, India

Open field burning of rice crop residues in Punjab, India is a annual feature which is a serious environmental concern as thick smog engulfs the entire region, air quality index reaches to alarming levels and people struggle to breathe in the highly polluted air. The present study is an attempt to evaluate, in monetary terms, the willingness of people that a biomass based power plant be set up so that the practice of open field burning is halted. The willingness to pay (WTP) of people has been studied in Sangrur district, Punjab using Discrete Choice Experiments. Respondents representing the actual demographic of the district were randomly selected for the experiment. The study revealed that the highest WTP ( ₹ 187) was observed for the economic benefits of the power plant, that is, increase in revenue of the farmers and, employment and training opportunities for the locals. This was followed by the WTP for benefits that biomass based power plant would offer by reducing the health risks (₹ 165) associated with the burning of rice crop residues. The results of the study thus provide economic valuations of externalities associated with open field burning as well as underline the directions for bioenergy development in the state of Punjab, India.

Consumer Willingness to Pay for Food Safety Attributes in China: A Meta-Analysis

Food safety incidents in China have led to increased research into consumers’ willingness to pay (WTP) for food safety attributes. This paper employed meta-regression models to analyze the empirical results of WTP estimates for safety attributes through a thorough literature retrieval of relevant studies. The results showed that, to varying degrees of significance, consumer WTP varied across different study characteristics. Regarding types of food products, dairy products were found to be associated with the highest WTP, followed by pork and crop. In addition, WTP estimates of attributes directly related to health benefits were higher than those with mixed benefits. A significantly positive time effect was found on WTP, with an increasing trend of WTP after the San Lu powder scandal in 2008. Knowing that WTP estimates are sensitive to a number of characteristics, the study provides additional insights into understanding market response to food safety attributes in China.

Willingness to pay for a message: personalized licence plate auctions in Hong Kong

ABSTRACT We use a large sample of winning price data hand-collected from Hong Kong’s personalized licence plate auctions held from 2006 to 2018 to estimate hedonic price regressions that document the willingness to pay (WTP) for a message. A clear and concise message of emotion or humour tends to attract a high WTP. The estimated WTP effects of vanity, positive outlook and superstition are relatively small. These findings affirm that advertising messages should be clear and concise, preferably appealing to consumers’ emotion and humour.

IDENTIFYING AND ANALYZING FACTORS THAT AFFECT THE WILLINGNESS-TO-PAY OF TUITION OF A BOARDING HIGH SCHOOL IN A REMOTE AREA IN INDONESIA

Tuition is a critical consideration for families who plan to send their children for superior high school. In any purchase strategy, ability to pay (ATP) and willingness to pay (WTP) have a different understanding. ATP depends on any information related to families’ wealth while WTP is determined by how families’ perceived the value proposition provided. This study aims to measure WTP and identify the factors that influence the tuition of superior high school, so it can be use in determining marketing strategies and pricing strategies. This data was collected by questionnaire to 360 respondents obtained during student admission of SMA Unggul Del. The relationship of factors that influence the WTP is determined by multiple linear regression methods. Based on the analysis, the average WTP is Rp1.135.322,22, while the mode value is Rp1.000.000,00 per month. Factors influencing WTP are the age of parents, income level, and parent’s WTP ratio of the tuition of SMA Unggul Del with that of other favorite school. Based on these factors, to be able to target parents of students with higher WTP, an effective marketing strategy is targeting parents with higher income levels, younger, and perceive SMA Unggul Del more than other schools.

Pollution exposure and willingness to pay for clean air in urban China

Rapid industrialization and urbanization are often accompanied by deteriorating air quality that imposes substantial health and productivity costs on the local population. However, existing studies have generally found low marginal willingness to pay (WTP) for mitigating such damages. To understand the determinants and the extent of WTP for air quality improvements, we collected comprehensive socio-demographic and stated preference information from more than 3000 random respondents in three cities in China. Combining the survey data with air quality data from ground-level monitoring stations, we find that exposure to persistent air pollution is a significant determinant of the extent individuals are willing to pay for cleaner air. On average, urban residents are willing to pay 65 CNY (~10 USD) each year to improve air quality to World Health Organization standards. Males and individuals that are younger and more educated tend to have higher WTP. We also find that individuals with more knowledge of sustainability and who engage in more pro-environmental behaviors are willing to pay more. Compared to existing government monetary incentives to reduce air pollution, the public's total WTP for cleaner air is much higher. Overall, these results highlight the potential welfare gain for policymakers to implement more stringent air quality regulations to reduce pollution.

Sustainable water access and willingness of smallholder irrigators to pay for on-farm water storage systems in Tsavo sub-catchment, Kenya

On-farm surface water storage systems can supplement irrigation needs and relieve pressure on surface streams. Using choice experiments, this study assessed farmer’ preferences and willingness to pay (WTP) for the different attributes of on-farm water storage systems: all year water availability for irrigation, reduction of water resource conflicts and improved water quality. Results show that if smallholder irrigators could be assured of all year water availability, they would be willing to pay US$ 1459.90 per household per hectare. Similarly, a reduction in water resource conflicts attracted a marginal willingness to pay (MWTP) of US$ 1470.20 per household, while improved water quality for domestic use and ecosystems had a MWTP of US$ 870.20. High preferences and WTP for these attributes suggest that policies geared towards addressing water resource conflicts and uncertainty of irrigation water supply need to incorporate on-farm surface water storage systems.

Does financial literacy affect the value of financial advice? A contingent valuation approach

The paper examines the determinants of investors’ willingness to pay (WTP) for suitable advice. We use contingent valuation, a method frequently used to estimate the value of non-market goods and services, with a unique survey data to estimate WTP for suitable advice. We find that investors with a high level of financial literacy recognize the value of financial advice; therefore, they have a higher WTP. These investors are also less likely to consult with a financial adviser if the advisory fee exceeds investors’ maximum WTP. We also suggest the policy implications of our empirical results.

Ghana’s National Health Insurance Scheme: An Ordinal Probit Valuation of Willingness to Pay Higher Premiums for Improved Services

The importance of improved healthcare services under Ghana’s National Health Insurance Scheme (NHIS) is nationwide admitted. However, service improvement for insurance schemes comes with extra cost. To fill the funding gap, insurance schemes typically charge enhanced premiums. This requires clients’ approval and cooperation to implement. For this reason, this study was conducted to assess Ghana’s NHIS subscribers’ willingness to pay (WTP) enhanced premiums for improved services. Some socio-economic and demographic factors were used as covariates. WTP, being the dependent variable, was categorized into high WTP, moderate WTP, low WTP, and no WTP enhanced premiums. The likelihood of a client falling in a particular WTP category was examined using the Cumulative Ordinal Probit (COP) regression model. A likelihood ratio chi-square of 58.82 with p < 0.000 shows that the model was statistically significant, and fit for prediction. Results showed that age-groups 18-30, 30–45, unemployed, tertiary education, and level of income significantly influenced WTP. Predictions showed that for any average national health insurance user, the probability of being in high WTP, moderate WTP, low WTP and no WTP premium are respectively 0.51, 0.27, 0.11 and 0.12. Based on the results of this study, we recommend that Ghana’s NHIS should institute a progressive premium regime in order to cater for the different needs and financial abilities of clients, thus helping to fill the funding gap.

Tourists’ willingness to pay for nature-based tourism experiences.

This paper deals with willingness to pay (WTP) for nature as a public good. The study addresses the relationships between motivation for nature-based experiences, environmental engagement, involvement with nature experiences, relationship with nature, preferred degree of adaptation of nature and consumers’ WTP. The aim was to identify factors that influence WTP for nature-based tourist experiences. The study relies on quantitative survey data from 1634 respondents in Norway. The data were analyzed using SPSS. WTP varies according to factors such as escape, recognition, active achievement, esthetics, social and environmental concern, preference for adaptation and type of natural surroundings. Tourists who place importance on, for example, peer recognition and escape, have a higher WTP for nature that is not overcrowded and with little or no adaptation for tourism purposes. The article discusses practical issues such as how WTP should affect management decisions about the pricing of nature tourism, and presents the theoretical and practical implications of the results.

Guilt, Gender, and Work-Life Balance in Japan

The quantification of how aspects of a job are valued by employees sheds light on the potential for labor market reform in Japan. Using a nationwide sample of 1,046 working-age adults, we conduct a choice experiment that examines individuals’ willingness to trade wages against job characteristics such as the extent of overtime, job security, the possibility of work transfer and relocation. Our results suggest that: i) workers have high WTP (willingness to pay) to avoid extreme overtime and work transfer, ii) women have higher WTP than men, and iii) higher WTP for women are driven in part by feelings of guilt.

Nature affinity and willingness to pay for urban green spaces in a developing country

Urban green spaces (UGS) provide multiple ecosystem services to city residents and are often their only places to spend time in a natural environment. Rapid urbanisation poses difficult choices for city planners who frequently decide to prioritise built infrastructure over retaining or enhancing green spaces, not least because the value of green spaces is rarely recognised in policy and planning processes. This is particularly true in developing countries which face rapidly growing populations and trade-offs between the growing demand for built infrastructure and access to nature. We address the value of public UGS using both a monetary approach and a non-monetary approach. A Contingent Valuation (CV) survey was used to elicit householderś willingness-to-pay (WTP) for three different scenarios to enhance public UGS provision in Bishkek, Kyrgyzstan. Scenarios were based on ongoing public debates on how to address the degradation and loss of existing park areas and on current plans to build new parks. The same survey also employed the Nature Relatedness (NR) scale, which measures individual cognitive attachment to nature, as a non-monetary valuation approach. Our findings showed that a high attachment to nature does not necessarily lead to higher WTP for improved provision of public UGS as WTP is constrained by household characteristics such as income, education and household size. We concluded that monetary valuation techniques could potentially underestimate the value attached to UGS by some population groups (e.g. rural migrants and pensioners) that attach great importance to UGS but whose values are not reflected in a high WTP. Thus, we argue that the assessment of the value of UGS would benefit from combining monetary and non-monetary approaches under various institutional contexts; and that this would be particularly important for cities in developing countries.

Joy Of Giving Week Providing Stimulus to Customers and Triggering Response in Terms of Willingness To Pay Under Cause Related Marketing

Abstract We conducted a study using an experimental approach and made a comparison of customers’ Willingness To Pay (WTP) during two time frames; one highlighting an event – Joy Of Giving Week (JOGW) and the other; post JOGW (Non-Joy Of Giving Week) not specifically linked to giving. When a time frame highlighting an event is used, it provides a stimulus to the customers which triggers a response in terms of higher WTP. We posit that a time frame highlighting an event can have an impact on customers’ WTP for a product linked to a cause. We present a new facet of Facilitated Giving Form of Cause Related Marketing (CRM).This form offers benefits to three entities: the Non-Governmental Organization (NGO) in terms of increased availability of funds, customers experience a ‘feel good factor’ by purchasing a product of the NGO associated with a cause and, builds the image of the business unit.

Public Attitudes, Preferences and Willingness to Pay for River Ecosystem Services.

River basins are key sources of ecosystem services, with a wide range of social and economic benefits and many effects on human well-being. However, intensified land use and other dramatic variations in river ecosystems can alter ecosystem functions and services. In this study, we explored the public awareness, attitude and perception regarding environmental and water resource issues and assessed the willingness to pay (WTP) for improving selected attributes of the Wei River basin. Various rankings, Likert scales and random parameter logit (RPL) models were used to analyze data obtained from 900 surveyed respondents. Most respondents were more concerned about environmental and water resource management issues rather than socioeconomic attributes. From a policy perspective, 83.32% and 50.50% of the residents ranked “improvement in water quality” and “improving irrigation conditions,” respectively, as their main priorities regarding ecological restoration. Moreover, the results obtained using RPL models showed that the coefficients were significant for all ecological attributes and monetary attributes, as expected. The positive and significant coefficient for the alternative specific constant demonstrated that the respondents preferred restoration alternatives to the status quo. Furthermore, the highest WTP was found for water quality (91.99 RMB), followed by erosion intensity (23.59 RMB) and water quantity (11.79 RMB). Our results are relevant to policy development and they indicate that ecological restoration is the favored option.

Temporal Reliability of Willingness to Pay for Payments for Environmental Services: Lessons from Lombok, Indonesia

Willingness to pay (WTP) for payments for environmental services (PES) can be temporarily reliable if contingent valuation (CV) studies are embedded in an accurate survey population, yield low measurement errors, and are based on a correct assumption of no change in sociodemographic factors affecting buyer preferences. These pre-conditions are assumed in PES schemes applying temporal reliability of WTP. This study tests these conditions in CV-PES studies from 2001, 2003, and 2011 in Lombok, Indonesia, by comparing them with a new CV-PES study in 2015. Our results show that the CV-PES studies would not meet the pre-conditions due to inclusion of non-PES buyers, potential measurement errors implied by a lack of validating information and high WTP estimate, and/or failure to test the condition of no change of socio-economic factors. Results contribute to identifying pragmatic challenges and lessons for applying temporal reliability of WTP to PES implementation.

Transportation service bundling – For whose benefit? Consumer valuation of pure bundling in the passenger transportation market

Novel approaches to service bundling in the passenger transportation market are enabled by technology driven innovations and give rise to so called Mobility as a Service (MaaS) concepts. These approaches promise to increase the accessibility of existing public transportation services, possibly decrease car ownership rates and lower the environmental burden of the transportation system. However, the potential effects of comprehensive service bundles in the passenger transportation market are still largely unclear.In a competitive market, the potential success of MaaS bundles follows consumer valuation of the bundles as compared to valuation of stand-alone services. Thus, the difference between the bundle and sum-of-parts willingness to pay (WTP) is an indicator for the valuation of the bundling itself (which includes service integration valuation) and effects the competitiveness of the service bundles. In this study, several discrete choice experiments were conducted to indirectly estimate consumers' WTP for stand-alone transportation services and service bundles.The results indicate that public transportation, car sharing, and park and ride services are valuated significantly higher when offered in a bundle instead of as a stand-alone service. Bicycle-sharing, electrical bicycle (e-bike) sharing and taxi services are valuated lower. Potential consumers also exhibit a high WTP for a smartphone application that integrates the services and manages ticketing and payment.Consequently, subscription-based pure bundles for all transportation modes may not be the optimal strategy for mobility providers. Instead, it may be better to bundle public transportation with car sharing and park and ride to exploit the higher WTP and offer (electric) bicycle-sharing and taxi services on a pay-per-use basis. In this way, profitability of a public transportation system could be increased.

Willingness-to-pay for a hypothetical Ebola vaccine in Indonesia: A cross-sectional study in Aceh

Background: Some Ebola vaccines have been developed and tested in phase III clinical trials. However, assessment of whether public have willingness to purchase or not, especially in unaffected areas, is lacking. The aim of this study was to determine willingness to pay (WTP) for a hypothetical Ebola vaccine in Indonesia. Methods: A cross-sectional study was conducted from 1 August to 30 December 2015 in five cities in Aceh province of Indonesia. Patients’ family members who visited outpatient departments were approached and interviewed about their sociodemographic characteristics, knowledge of Ebola, attitude towards vaccination practice and their WTP for a hypothetical Ebola vaccine. A multivariable linear regression model assessed the relationship between these explanatory variables and WTP. Results: During the study, 500 participants were approached and interviewed. There were 424 (84.8%) respondents who completed the interview and 74% (311/424) expressed their acceptance for an Ebola vaccine. There were 288 participants who were willing to pay for an Ebola vaccine (92.6% out of 311). The mean of WTP was US$2.08 (95% CI: 1.75-2.42). The final multivariable model indicated that young age, high educational attainment, working as a private employee, entrepreneur or civil servant (compared to farmers), being unmarried, and residing in a suburb (compared to a city) were associated with higher WTP. Conclusions: Although the proportion of the participants who would accept the Ebola vaccine was relatively high, the amount they were willing to pay for Ebola vaccine was very low. This finding would indicate the need of subsidies for Ebola vaccine in the country.