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Definition, Measurement and Determinants of the Consumer's Willingness to Pay: a Critical Synthesis and Directions for Further Research

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  • Marine Le Gall-Ely

    (ICI - Laboratoire Information, Coordination, Incitations - UEB - Université européenne de Bretagne - European University of Brittany - UBO - Université de Brest - Télécom Bretagne - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest)

Abstract

Differentiated prices, bundling, Web auctions : firms' pricing practices are evolving. When there is no market or for customised pricing, the willingness-to-pay concept seems to be interesting. This article aims at presenting a synthesis of the marketing research stream relative to willingness to pay. First, a definition of the concept is given and compared to other similar concepts, notably reference price and acceptable price. Then the methods of measurement are presented, compared to those used to measure elasticity and criticized. Furthermore, the research on external determinants of willingness to pay is commented. Finally, numerous directions for further research are proposed.

Suggested Citation

  • Marine Le Gall-Ely, 2009. "Definition, Measurement and Determinants of the Consumer's Willingness to Pay: a Critical Synthesis and Directions for Further Research," Post-Print hal-00522828, HAL.
    • Handle: RePEc:hal:journl:hal-00522828
    Note: View the original document on HAL open archive server: https://hal.science/hal-00522828
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    Cited by:

    1. Debora Bettiga & Lucio Lamberti & Emanuele Lettieri, 2020. "Individuals’ adoption of smart technologies for preventive health care: a structural equation modeling approach," Health Care Management Science, Springer, vol. 23(2), pages 203-214, June.
    2. Yawar Abbas Sandhu & Selvan a/l Perumal & Waida Irani Mohd Fauzi, 2019. "The Predictors and Consequences of Personal Norms in Context of Organic Food Among Pakistani Consumers," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 314-336, May.
    3. Chen, Chien-fei & Nelson, Hannah & Xu, Xiaojing & Bonilla, Gregory & Jones, Nicholas, 2021. "Beyond technology adoption: Examining home energy management systems, energy burdens and climate change perceptions during COVID-19 pandemic," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    4. Sebastian Lehmann, 2014. "Toward an Understanding of the BDM: Predictive Validity, Gambling Effects, and Risk Attitude," FEMM Working Papers 150001, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    5. Liljamo, Timo & Liimatainen, Heikki & Pöllänen, Markus & Utriainen, Roni, 2020. "People’s current mobility costs and willingness to pay for Mobility as a Service offerings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 99-119.
    6. Aleksandra Sus & Rafał Trzaska & Maciej Wilczyński & Joanna Hołub-Iwan, 2023. "Strategies of Energy Suppliers and Consumer Awareness in Green Energy Optics," Energies, MDPI, vol. 16(4), pages 1-23, February.
    7. Mahmoud Abdulai Mahmoud & Ernest Kafui Kwasi Tsetse & Ernest Edem Tulasi & Donne Komla Muddey, 2022. "Green Packaging, Environmental Awareness, Willingness to Pay and Consumers’ Purchase Decisions," Sustainability, MDPI, vol. 14(23), pages 1-14, December.
    8. Thomas M. Fojcik & Heike Proff, 2014. "Accelerating market diffusion of battery electric vehicles through alternative mobility concepts," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 14(3/4), pages 347-368.
    9. Punnaros Pisarn & Man-Keun Kim & Shang-Ho Yang, 2020. "A Potential Sustainable Pathway for Community-Supported Agriculture in Taiwan: The Consumer Perspective in a Farmers’ Market," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    10. Fenna Arnoldussen & Mark J. Koetse & Sander M. de Bruyn & Onno Kuik, 2022. "What Are People Willing to Pay for Social Sustainability? A Choice Experiment among Dutch Consumers," Sustainability, MDPI, vol. 14(21), pages 1-21, November.
    11. Agossadou, A.J. & Fiamohe, R. & Tossou, H. & Kinkpe, T., 2018. "Agribusiness opportunities for youth in Nigeria: Farmers perceptions and willingness to pay for mechanized harvesting equipment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277553, International Association of Agricultural Economists.
    12. Jaime Larumbe, 2021. "Measuring Customer Reservation Price for Maintenance, Repair and Operations of the Metro Public Transport System in Qatar," Sustainability, MDPI, vol. 13(19), pages 1-16, October.
    13. Artur Pawłowski & Paweł Rydzewski, 2023. "Challenges and Opportunities for the Energy Sector in the Face of Threats Such as Climate Change and the COVID-19 Pandemic—An International Perspective," Energies, MDPI, vol. 16(11), pages 1-21, May.
    14. Niranjan Devkota & Anish B. K & Nirash Paija & Udaya Raj Paudel & Udbodh Bhandari, 2022. "Mapping the industries’ willingness to pay for unrestricted electricity supply," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 666-682, January.
    15. Peng Ning & Sang-Ho Lee, 2019. "Estimating the Young Generation’s Willingness to Pay (WTP) for PM 2.5 Control in Daegu, Korea, and Beijing, China," Sustainability, MDPI, vol. 11(20), pages 1-20, October.
    16. Tsai-Chiao Wang & Ta-Wei Tang & Chia-Liang Tsai, 2022. "The Visual Attention and Psychological Responses from Older Customers to Wellness Service Pictures of Hotels," IJERPH, MDPI, vol. 19(3), pages 1-12, January.
    17. Ecker, Franz & Spada, Hans & Hahnel, Ulf J.J., 2018. "Independence without control: Autarky outperforms autonomy benefits in the adoption of private energy storage systems," Energy Policy, Elsevier, vol. 122(C), pages 214-228.

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