Will They Buy It: Variables That Influence Willingness To Pay
Poster Number
4
Format
Poster Presentation
Faculty Mentor Name
Michelle Amaral
Faculty Mentor Department
Economics
Abstract/Artist Statement
Dan Ariely (2004) demonstrated that people’s willingness to pay (WTP) for an item was malleable, and thus modifiable by external variables. Further, he found that when individuals were provided with an arbitrary number, their WTP was subsequently influenced. Ariely (2006) also found that external variables (e.g. information) influenced drink preference in participants. The current study examined which variables influenced student’s WTP for two categorically different drinks (i.e. decaffeinated coffee vs. decaffeinated coffee mixed with Rockstar Energy Drink ®). Participants in this study were randomly assigned to one of three groups; each group received different information about the two products. Prior to trying the drinks, participants were asked to convert the last three digits of their student ID number into a monetary quantity (e.g. 625 to $6.25). In the control group, participants tried both blends of coffee without knowledge that Rockstar was mixed with coffee. In group two, participants were told the ingredients in both drinks, prior to tasting either. In group three,participants tried both drinks and were then told that Rockstar was in the second coffee before deciding which drink they preferred. A regression analysis was used to analyze which variables had an impact on participants’ WTP. The results suggested that a higher ID number lead to a higher WTP for coffee mixed with Rockstar (p ≤ .01). Further, having friends in the group (p ≤ .05) and being told that Rockstar was in the second coffee before participants decided on which coffee was preferred (p ≤ .05) influenced WTP.
Location
Tiger Lounge
Start Date
21-4-2012 10:00 AM
End Date
21-4-2012 12:00 PM
Will They Buy It: Variables That Influence Willingness To Pay
Tiger Lounge
Dan Ariely (2004) demonstrated that people’s willingness to pay (WTP) for an item was malleable, and thus modifiable by external variables. Further, he found that when individuals were provided with an arbitrary number, their WTP was subsequently influenced. Ariely (2006) also found that external variables (e.g. information) influenced drink preference in participants. The current study examined which variables influenced student’s WTP for two categorically different drinks (i.e. decaffeinated coffee vs. decaffeinated coffee mixed with Rockstar Energy Drink ®). Participants in this study were randomly assigned to one of three groups; each group received different information about the two products. Prior to trying the drinks, participants were asked to convert the last three digits of their student ID number into a monetary quantity (e.g. 625 to $6.25). In the control group, participants tried both blends of coffee without knowledge that Rockstar was mixed with coffee. In group two, participants were told the ingredients in both drinks, prior to tasting either. In group three,participants tried both drinks and were then told that Rockstar was in the second coffee before deciding which drink they preferred. A regression analysis was used to analyze which variables had an impact on participants’ WTP. The results suggested that a higher ID number lead to a higher WTP for coffee mixed with Rockstar (p ≤ .01). Further, having friends in the group (p ≤ .05) and being told that Rockstar was in the second coffee before participants decided on which coffee was preferred (p ≤ .05) influenced WTP.