Measuring psychographics to assess purchase intention and willingness to pay

Abstract

PurposeMarketing managers routinely use purchase intentions data to make strategic decisions concerning both new and existing products and the marketing programs that support them. Yet, the indication from empirical investigations regarding the link between respondents' stated intentions and their actual behavior is not as clear. Predicting which consumer will purchase an environmentally friendly product, the research remains split, particularly when it comes to perceived “trade‐offs” between the environmental benefits, quality, and cost. In this regard, previous research has fallen short in examining consumers' actual purchase behavior versus self‐reported purchase intentions. This paper seeks to address these issues.Design/methodology/approachThis study measured consumer psychographics and expressed purchase intention to predict actual purchase behavior using an online survey and the Vickrey auction method.FindingsThe results show that respondents expressing a high intention to purchase environmentally friendly wines also reported strong attitudes and values toward the environment. However, the gap between stated willingness to pay and the actual price paid was wide.Research limitations/implicationsThe study was restricted to the investigation of one type of product. The model should be tested with a number of products that are purchased on a regular basis.Practical implicationsGiven the wide disparity between stated willingness to pay and actual price paid for those expressing high purchase intentions, marketing should use caution when assessing this targeted group for new product launches and potential price changes.Originality/valueThis study assessed the same cohort using a survey and auction experiment to relate consumer values and purchase intentions with actual behavior.

A Relationship Study on Marketing Strategy Management towards Customer Relationship Management and Perceived Value

“…Perceived value Barber et al (2012) mentioned that customer perceived value was derived from Transaction Utility Theory proposed by Thaler, who argued that a consumer would consider the purchase based on the perceived value, i.e. the choice of perceived benefit and the perceived sacrifice of a consumer paying for a product.…”

“…(3) Experiential value. Barber et al (2012) first proposed the customer value classification and regarded customer value as an experience not existing in the purchased products nor the selected brand or the possessed products, but completely from the consumption experience of a customer; a customer would acquire Rational Consumption Value and Experiential Consumption Value in the consumption process.…”

The Effect of Consumer Scepticism on the Perceived Value of a Sustainable Hotel Booking

“…All these factors can negatively influence value perceptions by consumers [6][7][8]. Several studies evaluated the perceived value of sustainable hotels modelling benefits and costs individually [9,10].…”

Willingness to Pay for Green Products vs Ecological Value System

“…Self-transcendence consists of an active concern for others and the desire to work for the good of society. It is a personal journey of selfdiscovery, where one strives for greater perfection, higher perspective, and moves beyond prior concepts of behavioral limitations, which goes beyond ego (Barber et al, 2012;Follows & Jobber, 2000;Schwartz, 1992Schwartz, , 1994. Self-enhancement reflects the extent to which individuals are motivated to enhance their own personal interests and how they see themselves.…”

“…Values are the abstract types that may be used for describing human behavior in accordance with the inner world: they are the basis for assessing behaviors and events (Barber et al, 2012;Follows & Jobber, 2000). Generally, they can be divided into: selftranscendence and self-enhancement.…”