Price Acceptance Research Articles

The Effect of Prestige Sensitivity on Price Acceptance in Vietnam’s Mobile Phone Market

The purpose of this study is to examine the effect of prestige sensitivity on mobile phone customer’s price acceptance in Vietnam and the mediating role of product knowledge and price mavenism on this relationship. We used the convenience sampling method for data collection via questionnaires with a sample of 605 consumers who purchased mobile phones. The collected data was analysed by applying a structural equation modelling method. The result indicates that prestige sensitivity has both direct and indirect effects on price acceptance via product knowledge and price mavenism. The findings suggest that prestige sensitivity can be used as a market segmentation criterion for mobile phones when making price decisions and providing customers with adequate information could improve price acceptance.

Price Acceptance for Organic Milk in Beijing, China

ABSTRACTThis study examines Chinese consumers’ acceptance and price willingness to pay for organic fluid milk. We used questionnaire data gathered in 2014 to analyze the impact of price and milk knowledge, as well as consumer age, gender, education and income on organic milk choice. The results indicate that: 1) young females with a strong educational background have shown the strongest consumption desire for organic milk; 2) those who shop for the family tend to support organic milk and are willing to pay more for the milk; 3) shoppers with more disposable income are willing to pay a premium price for organic milk.

Strategic benchmarking of service pricing based on the value added

Purpose– The purpose of this paper is to investigate opportunities to move benchmarking studies toward a strategic level. The authors benchmarked how service prices are defined based on the value added for the customer.Design/methodology/approach– A multi-case research investigated how manufacturers can increase their service revenues; how corporate reputation can be analyzed to enhance financial and market performance; how customer satisfaction and price acceptance are related; and how benchmark studies can move to a more strategic level based on a conjoint analysis of value and price.Findings– Price’s benchmarking studies must combine the customers’ value demands; the customer expectations associated to each value demand; the competitor prices; and the revenue alternatives that a supplier can explore (e.g. sale of new goods, services for new goods, services for non-new goods, and repair parts). The combination of these elements reveals several opportunities for revenue generation. This combination may also help to explain the existence of different prices for similar goods and services. The authors referred to this as a flexible pricing policy. Flexible pricing may help manufacturers maximize revenues, and win and maintain customers.Research limitations/implications– The following research questions are suggested for future studies: What other elements should be considered in strategic benchmarking studies? What other elements can influence a flexible pricing policy for goods, spare parts, and services? In what contexts can a flexible pricing policy be applied? How should flexible pricing practices be benchmarked?Practical implications– A strategic benchmarking study must first identify the customers’ value demands. It is then necessary to analyze customer expectations associated to each value demand. As shown, customers may have different expectations for the same product or service. Similar expectations must be grouped together in order to allow a well-structured benchmark.Originality/value– The authors’ findings suggest interesting points to be observed by the manufacturers who supply integrated solutions with a long life cycle.

Hysteresis, Price Acceptance, and Reference Prices

AbstractThe existence of price thresholds in grocery retailing is well‐documented. Most authors explain the existence of price thresholds using Assimilation‐Contrast Theory, Adaptation Level Theory, or Prospect Theory. However, each of these theories is untenable if consumers are believed to behave rationally. We offer a theoretical explanation grounded in Real Options Theory (ROT) and economic hysteresis. We test the ROT hypothesis against three plausible alternatives using a maximum likelihood friction model that we augment for unobserved heterogeneity. Our findings support the ROT hypothesis, and suggest that the existence of price thresholds in aggregate data are driven by a common recognition of real option values, which do not disappear with the inclusion of consumer heterogeneity.

Effect of knowledge on decision making in the context of organic cotton clothing

AbstractThis research was designed to study whether consumer knowledge on organic cotton and relevant issues influences attitude toward and price acceptance of organic cotton clothing. The effect of consumer knowledge was also studied on the way consumers use product label information in purchasing organic cotton clothing. An online survey was developed to measure the variables including experimental choice‐based conjoint models for mandatory and auxiliary label specifications. Four hundred ninety‐eight people completed the survey. The results indicated that moderately and highly knowledgeable participants were more willing to buy organic cotton clothing at higher price points and they had more positive attitudes toward organic cotton clothing than low knowledgeable participants. The results suggest that differentially knowledgeable consumers may attend to different types of information provided on product labels to evaluate organic cotton apparel products. Providing product‐related information on product labels is essential; however, providing additional information on the benefits of using organic cotton and socially responsible business practices may improve consumers’ knowledge and acceptability of organic cotton apparel products.

An Integrated Model of Service Experience, Emotions, Satisfaction, and Price Acceptance: An Empirical Analysis in the Chinese Hospitality Industry

This study investigated the relationships between service experience, emotions, satisfaction, and price acceptance in Chinese resort hotels. A self-administered survey was used to collect the data from respondents. A total of 500 questionnaires were distributed to customers at resort hotels in three cities of China; 170 were returned representing a response rate of 34%. The results of this study show a significant relationship between service experience and emotions, jointly influencing customer satisfaction, which influences price acceptance of customers. These results indicate that management of resort hotels need to consider how the physical environment, interaction with employees, and other customers within resort hotels can be managed in order to satisfy the customers emotionally, which will lead them to accept premium prices charged by resort hotels. This study would enable resort hotels to have a better understanding of how a great experience and positive emotions influences customer satisfaction and price acceptance.

From Price Fairness to Price Acceptance: The Study of Low-Cost Carrier Airlines in Indonesia

This study is conducted to investigate the relationship between price fairness, customer satisfaction, loyalty, and price acceptance in Indonesia’s low-cost carrier market. The study is using a combined method of a quantitative study with paper-based questionnaires and a qualitative study by means of a focus group discussion, to LCC customers in Jakarta. Convenience sampling collects 200 usable respondents. The data is analyzed using the regression method in SPSS. The empirical result shows that in the low cost carrier market, price fairness has an impact on customer satisfaction, loyalty, and price acceptance. Customer satisfaction affects price acceptance and loyalty positively. However, loyalty has shown no effect on price acceptance. This study suggests that customer satisfaction is the main factor to build price acceptance in the low-cost airlines industry. Some managerial implications relevant to the findings are provided.

The effect of perceived price fairness through satisfaction and loyalty on international tourists’ price acceptance of Islamic-Iranian art products

Purpose– The purpose of this paper is to investigate the effect of perceived price fairness through satisfaction and loyalty on price acceptance. The antecedents of price fairness, including price perception and tourist vulnerability, will also be examined.Design/methodology/approach– The authors collected 674 questionnaires from international tourists who purchased Islamic-Iranian art products and analyzed simultaneous relations with a structural equation modeling.Findings– The results indicate that perceived price awareness and perceived vulnerability positively and significantly affect perceived price fairness. Additionally, perceived price fairness has a significant influence on customer satisfaction and loyalty. Moreover, customer satisfaction and loyalty were found to have a positive impact on price acceptance.Practical implications– Based on the findings, the results are expected to create a useful perspective for the researchers so they can present a broader model in future studies. The results of this research can help managers develop better pricing strategies and effective pricing mechanism design and, through recognition of factors influencing customer perception of the price, instigate better pricing.Originality/value– Although prior research focused on the relationships among the variables of perception of price, perceived vulnerability, perceived price fairness, satisfaction and loyalty and price acceptance, the current study considers the effect of these variables as a general compound model and in the context of Islamic-Iranian art tourism products.

The Efects of Corporate Social Responsibility Initiatives and Price Premiums on Polish Consumers' Responses: An Experimental Study

Abstract This article explores whether, how and which forms of corporate social responsibility (CSR) initiatives influence consumer perceptions of the value of and intention to buy responsibly manufactured yogurt, and identifies the impact of the price rise effect on consumer responses. An experimental study was conducted using scenarios with a sample of 421 university students. The results indicate that information about positive corporate behavior evokes higher perceived value and buying intention than information about negative corporate behavior; that responses differ significantly depending on whether or not the CSR initiative relates to the firm's core business; and that there is a level of consumer sensitivity to the price premium for a responsibly made yogurt. This study expands existing knowledge beyond previous areas of focus by demonstrating that a CSR initiative related to a firm's core business generates higher perceived value and buying intention than a non-related initiative, and by showing that there exists a trade-of between functional and social attributes. The findings of this study may be of interest to companies by showing the level of premium price acceptance and by demonstrating that CSR initiatives detached from basic business activity may bring negative consequences in terms of sales volume.

Consumer behavior and the anticipation of a total stockout for a food product: proposing and validating a theoretical model

This paper investigates a new context which has not been studied by previous research, the product total stockout. This research can interest the distributor (or the seller) as well as the manufacturer of products. It helps in avoiding the causes of a total stockout and trying to satisfy consumers by adapting their marketing actions to consumer reactions toward food total stockout. This research proposes and validates a model explaining consumer behavior when anticipating a total stockout for a food product. An exploratory study developed the theoretical model. The quantitative validation of this model is achieved with a sample of 380 consumers, using the Structural Equation Model. Results show that total stockout anticipation is influenced by word-of-mouth and the perceived range assortment of the product. Consumer reactions in the case of a total stockout partially differ from those identified by past research on simple stockouts. For example, product stockpiling and product price acceptance appear as important reactions to a total stockout for a product. However, product substitution intention does not represent a consequence of this anticipation. This research is focused on one product (milk). This affects the possibility of generalizing results for other food product categories. It does not investigate moderating factors, which can be the object of future research.

Technological and ethical antecedents of e-book piracy and price acceptance

Purpose– The purpose of this paper is to analyse the driving factors of e-books’ illegal downloading and price acceptance from a theoretical perspective that embraces ethical and technological aspects. The diffusion of e-readers and tablets has led to a spate of pirated copies of books.Design/methodology/approach– The proposed model holds that normative and value consciousness, as well as the self-efficacy, the usefulness and the use of the new technology, are determinants of the trend towards free downloads and the maximum acceptable price for e-books. Data are collected from a sample of 227 users of e-book reader devices.Findings– The results provide evidence that individuals are inclined towards piracy when they use and control the technology, whereas value consciousness mitigates illegal downloading and is basic to the individuals’ acceptance of a higher price.Implications– Bearing in mind that the spread of electronic devices has led to an increase in downloads, raising awareness of the norms among individuals is essential if piracy is to be curtailed. In addition, actions aimed at endowing electronic books with value would encourage consumers to pay a higher price for them.Originality/value– Few attempts have been made to apply ethics theories and the technology acceptance model to the context of e-books’ piracy, and even less effort has been devoted to analyse consumers’ price acceptance in the e-book industry.

PRM160 A New Value-Based Pricing Framework for the Optimal Pricing of Pharmaceutical Assets

Three common methods of estimating optimal prices for pharmaceutical assets are willingness-to-pay, health economic price appraisal, and reference price benchmarking. Each method has significant drawbacks. Willingness-to-pay, assessed through primary research, can be limited by lack of knowledge of product list prices and the disconnect between respondent answers and real-life price acceptance. Health economic appraisals, utilizing cost-of-treatment models to estimate the price at which new products are cost-effective, are subject to error, interpretation, and are rarely accepted by stakeholders who drive price decisions. Reference price benchmarking, using market analogues to gauge price points for new products, does not take into account unique differences, perceived or real, of assets. None of these methods are able to quantify market intangibles such as unmet need and strength of competition. To address these weaknesses, the authors have developed a mathematical framework using all three pricing methodologies to triangulate on a price range. The Value-Based Pricing Framework equation is a collection of activities that allows for the economic quantification of an asset's attributes, critical to determining an asset's overall value-based price. These activities include: 1) Willingness-to-pay Assessment: utilizes qualitative and quantitative feedback from decision makers to understand price expectations and thresholds vis-à-vis current competitors and comparators; 2) Reference Price Benchmarking: Assesses pricing structure of comparators to predict performance; and 3) Health Economic Analysis: Estimates product pricing as a function of health economic differentiation and determines cost-savings that can be offset in price. Value-Based Pricing is a structured way of estimating asset price based on its perceived value by various stakeholders. This flexible and adaptable framework can be applied to any therapeutic area and used to evaluate any number of varying product profiles. It involves understanding how stakeholders value asset attributes and how their willingness-to-pay helps quantify each individual attributes' contribution to a price.

Hubungan Kepantasan Harga, Kepuasan Pelanggan DAN Loyalitas SERTA Harga yang Dapat Diterima

The vast number of restaurant entrepeneur incite such an intense competitiveness whichleads to diversity in practising marketing strategy, One factor that needs to be brought into attention is pricing, which has become a sensitive subject in the time of global crisis.When something is overpriced, consumer will easily walk away, and when it is low-priced,a doubt about quality will aries. Price of a product or a service will, more often than not,affect consumer’s buying decision. Thus it is important for a company to be able to place anacceptable price. Yet, so far only few researche evaluated “price acceptance” as consequenceof customer satisfaction. This research aims to assess the relationship between price fairness,customer satisfaction, loyalty, and price acceptance in a service company. Questionnaireswere distributed to respondents by the self-administered questionnaire method and a total of187 completed questionnaires were used in the analysis. The data was then analzed usingstructural equation modeling. Three of five hypotheses were supported, and two others werenot supported. This paper alson provides the implications for theoritical and managerial andoffers directions for future research.Keywords : Price fairness, Customer Satisfaction, Loyalty, Price Acceptance

An integrated model of price, satisfaction and loyalty: an empirical analysis in the service sector

PurposeThe purpose of this paper is to investigate the effects of customer satisfaction both directly and indirectly (through loyalty) on price acceptance. In addition, price fairness is considered as an antecedent of customer satisfaction and loyalty.Design/methodology/approachBased on a theoretical discussion regarding the relationship among price fairness, customer satisfaction, loyalty, and price acceptance, empirical research was conducted to test the proposed relationships. Multiple‐item indicators from previous studies were employed to measure the constructs.FindingsThe results from the study provide empirical support, suggesting that perceived price fairness influences customer satisfaction and loyalty. The analysis also suggests that customer satisfaction and loyalty are two important antecedents of price acceptance.Research limitations/implicationsThe study ponders the relationship between customer satisfaction and loyalty and price acceptance, while other factors that have an influence on price acceptance are not considered.Practical implicationsThe research results suggest that perceived price fairness in service industries can be viewed as a threshold factor in order to maintain satisfied and loyal customers. Additionally, managers should consider that price acceptance depends on the level of satisfaction and loyalty.Originality/valueThe present study provides useful information on the relationship among price fairness, customer satisfaction, loyalty, and price acceptance in service industries.

Customer satisfaction and price acceptance in the case of electricity supply

The paper reports empirical research exploring the relationship between satisfaction and price acceptance in the case of a basic utility. The research is based on a face-to-face questionnaire survey of a representative sample of randomly selected 1384 residential consumers in Hungary. The respondents were asked about their satisfaction with electricity supply and at the same time they were requested to evaluate the prices compared to the perceived value of the service they received. The statistical model developed for the analysis of this relationship proved to be reliable and significant. It proved the existence of the basic hypothesis that satisfied customers have higher price acceptance.

스포츠시설 소비자의 가격수용과 서비스지각에 따른 고객만족 방안

스포츠시설 소비자의 가격수용과 서비스지각에 따른 고객만족 방안

Kundenzufriedenheit und Preisbereitschaft — Empirische Erkenntnisse aus der Hotelbranche

It is very often argued that customer satisfaction is a driver of price acceptance. However, only Anderson and Wricke provide some empirical evidence. In this paper the relationship between customer satisfaction and price acceptance is analysed and actually measured in the hotel industry. In order to calculate the relation between the two variables, two studies one on customer satisfaction and another one on price acceptance were carried out; each participate responded in both studies. The analysis was carried out by a conjoint and regression analysis. It can be shown that there is an inverted S-type-relationship between the two variables. So the effect of an increase in satisfaction on price acceptance depends on the actual level of satisfaction.

Customer satisfaction as an antecedent of price acceptance: results of an empirical study

The goal of this current study is to extend customer satisfaction research in two important ways. First, it attempts to demonstrate the relationship between customer satisfaction and price acceptance. Second, as Voss, Parasuraman and Grewal claim that only a small proportion of the existant satisfaction research focuses on services, we empirically analyze the relationship between customer satisfaction and price acceptance in the hotel industry. Finally, the implications of the study’s findings for research into purchasing patterns and pricing policy are discussed.

An Empirical Analysis of Latitude of Price Acceptance in Consumer Package Goods

Scanner panel data analyses for sweetened and unsweetened drink categories (with four brands in each) support the presence of a region of price insensitivity around a reference price. The analyses also suggest that consumers with higher average reference price have a wider latitude of price acceptance. Consumers with a higher frequency of purchase (i.e., shorter average interpurchase time interval) are found to have a narrower latitude of price acceptance, because they are more aware of the range of price distributions. Finally, consumers with a higher average brand loyalty have a wider latitude of price acceptance, demonstrating greater tolerance of price fluctuations.

Correlates of Price Acceptability

The cognitive tradeoff between price and product quality is used as a basis for hypothesizing interrelationships between two individual difference variables and two price-related responses. Results of a correlational study support the hypothesis of an inverse relationship between price consciousness and product involvement and the hypotheses that price consciousness and product involvement have opposite implications for several price-related constructs. Results also indicate a positive relationship between price acceptability level and the width of the latitude of price acceptance.