How much more are consumers willing to pay for a higher level of service? A preliminary survey

Abstract

A survey was conducted using conjoint analysis to determine how consumers perceived the relative importance of price vs. quality of service in the selection of restaurants. The use of conjoint analysis enables one to mimic the trade‐off situation in a consumer’s choice process. The results showed that price was a more important factor than quality of service. Estimates are also made regarding how much more respondents are willing to pay for a higher level of service.

Consumer behavior in choice of minimally processed vegetables and implications for marketing strategies

“…Price premiums, the excess prices paid over and above the "fair" price that is justified by the "true" value of the product, may be indicators of consumers' demand for that product (Tse, 2001). WTP for Eco-labelled food products can be a good predictor of these food products demand.…”

“…A large body of research regarding consumers' willingness to pay (WTP) for environmental friendliness and/or quality/safety in food production (Ballestrazzi et al, 2011;Husted, Russo, Meza, & Tilleman, 2014;Nassivera & Sillani, 2015;Rosa & Nassivera, 2013), as well as for non-food products (Laroche, Bergeron, & Barbaro-Forleo, 2001;Sexton & Sexton, 2014;Vlosky, Ozanna, & Fontenot, 1999) or services (Johnston, Schultz, Segerson, Besedin, & Ramachandran, 2013;Tse, 2001) can be found. Price premiums, the excess prices paid over and above the "fair" price that is justified by the "true" value of the product, may be indicators of consumers' demand for that product (Tse, 2001).…”

Descriptive Evidence on the Role of Corporate Brands in Marketing Higher Education Services

“…Tse (2001), for example, empirically demonstrated that service quality affects the consumer selection process. Zeithaml (1991) made the same argument from a conceptual perspective.…”

4A marketing mix impacts on organic food purchase intention

“…So, if the consumer perceives that organic food has value (e.g. egocentric values, such as health or pleasure) (Zanoli & Naspetti, 2002) and benefits, they might be willing to pay a higher price (Tse, 2001;Shaharudin et al, 2010). Organic food purchases are largely connected to consumers' environmental concerns, concerns about food quality, and/or safety.…”