Abstract
Pay What You Want (PWYW) is a type of participative pricing mechanism where the buyer can offer any price including a price of zero; and the seller has to accept the price without withdrawing the product offer. Although existing research identified several variables such as altruism, price consciousness, reference price, income, and perceived fairness of the price paid to influence consumers’ willingness to pay (WTP) under PWYW context; however, many of these variables may act in complex interactive ways. To the best of our knowledge, no study tested the interaction among these variables in a PWYW context. This research examined the direct and interactive impact of product involvement, price consciousness and internal reference price on consumers’ WTP under PWYW context. It confirmed that consumers pay a significantly higher price than zero under PWYW condition. The findings of the study revealed that product involvement had a direct impact on consumers’ WTP. Further, the effect of product involvement on consumers’ WTP was found to be moderated by price consciousness. This moderation, however, took place for consumers with high internal reference price but not for consumers with low internal reference price. Managerial implications of the findings were discussed.
Chapter PDF
Similar content being viewed by others
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Academy of Marketing Science
About this paper
Cite this paper
Roy, R., Rabbanee, F.K. (2016). Factors Influencing Consumers’ Willingness to Pay Under Pay What You Want Context. In: Campbell, C., Ma, J. (eds) Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-24184-5_216
Download citation
DOI: https://doi.org/10.1007/978-3-319-24184-5_216
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-24182-1
Online ISBN: 978-3-319-24184-5
eBook Packages: Business and ManagementBusiness and Management (R0)