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It may be expected that this number significantly increased in the last decade due to the improvement of FT awareness and FT acceptance. The first purpose of the present thesis therefore is to analyze the WTP for FT products as estimated in the most current empirical research studies. However, there may be discrepancies between the claimed and the actual purchase behavior; some people might claim that they would be willing to pay a premium but they do not behave accordingly.

Nicholls and Lee indeed discuss that only a minority of consumers that describe themselves as willing to pay for FT products actually purchase those products.

Therefore, the increased WTP as estimated in interviews and surveys need not predict an actual buying behavior. On the other side, the discussed attitude-behavior gap seems to contradict the sales volume increase in the last years see the previous section.

The turnover increase indicates that consumers are not only willing but also actually purchase FT products. Perhaps the most evidence on actual behavior comes from related field experiments. For example, Prasad et al. The results showed that Similarly, Hiscox and Smyth carried out a field experiment in a major New York City retail store. They picked two brands of towels and two brands of candles that were labeled as being produced under good working conditions. The researchers first recorded the weekly sales of the towels and candles without labeling any of them.

These findings have been supported by the most current field experiment performed by Bauer et al. Similarly to Hiscox and Smyth , Bauer et al. For example, Auger et al. Similarly, Basu and Hicks found that WTP exhibits an inverted U shape in the sense that people are willing to pay a premium, but only up to a critical price level.

The second purpose of the present thesis therefore is to specify how much extra people are willing to pay for FT products. Why should some individuals be more concerned than others to purchase FT products? To allow identifying possible factors, two main theoretical approaches - economic approach and social psychological approach - will be discussed cf. Within the budget restriction, the consumer purchases the product alternative that brings the highest utility per cost unit.

Given that FT features for the consumer buying FT products are important, this person gain additional utility from these features and hence purchase the product. Consequently, product price and income should represent significant factors influencing WTP for FT products. The product price deserves mention. In general, the higher price the less WTP.

However, Bauer et al. Hence, it may be also expected that WTP for FT products is associated with the increased product price. Another potentially important factor is functionality of FT products.

However, ethical features did not compensate for weak functional attributes i. Hence, with regard to classical FT products such as chocolate and coffee, functionality e. Rather, they focus on the context in which purchase intentions are formed as well as on variables that moderate the development of those intentions.

Andorfer and Liebe discuss three crucial issues within social psychological approach: Politik - Internationale Politik - Thema: BWL - Unternehmensethik, Wirtschaftsethik. Business economics - Business Ethics, Corporate Ethics. Politik - Sonstige Themen. Economics - International Economic Relations. Sport - Sport Economics, Sport Management. Business economics - Trade and Distribution. Business economics - Economic Policy. GRIN Publishing, located in Munich, Germany, has specialized since its foundation in in the publication of academic ebooks and books.

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CONSUMERS’ WILLINGNESS TO PAY USING AN EXPERIMENTAL AUCTION METHODOLOGY: APPLICATIONS TO BRAND EQUITY. By. YAN-MING LI. A thesis submitted in partial fulfillment of. the requirements for the degree of. MASTER OF ARTS IN APPAREL, MERCHANDISING, AND TEXTILES.

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This thesis is generally accepted by economists • “any good for which there is a willingness to pay or accept count[s] as an willingness to pay thesis $divdiv Despite the fact that, as Shakespeare said, "the pen is mightier than the sword," the pen itself is not enough to make an effective writer/10().

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Generally, about half of the households surveyed are willing to pay for better drinking water. Most of them are HHs living in two major cities, Hanoi and Ho Chi Minh City. On average for all of the sampled households, the value of willingness-to-pay makes up small percentage of household income, just % of total household income. product perceptions either negatively or friendlyfigre.tk addition, the willingness to pay (WTP) literature stipulates that WTP is determined by product attributes and individuals’ characteristics. This thesis therefore seeks to ascertain the factors affecting consumers’ preferences and WTP for.

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