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Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing

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  • Sharma, Piyush
  • Roy, Rajat
  • Rabbanee, Fazlul K.

Abstract

This paper explores the differences in the interactive effects of situational and enduring involvement with perceived crowding and time pressure on customers’ PWYW pricing decisions. Two empirical studies, an online experiment about a hair salon using PWYW pricing and a field-survey with customers of a real-life PWYW restaurant, are used to test all the hypotheses. In study one, situational involvement has significant direct and indirect effects on the customers’ allocation of internal reference prices to their PWYW prices (RATIO), whereas enduring involvement has a positive (negative) effect under low (high) situational involvement. In study two, both enduring and situational involvement have no significant direct effects on RATIO but situational involvement has a significant negative (positive) effect for participants with low (high) enduring involvement. Besides extending both PWYW and involvement literatures, these findings would help managers understand the direct and indirect effects of situational variables on customers’ PWYW pricing decisions.

Suggested Citation

  • Sharma, Piyush & Roy, Rajat & Rabbanee, Fazlul K., 2020. "Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing," Journal of Business Research, Elsevier, vol. 109(C), pages 88-100.
    • Handle: RePEc:eee:jbrese:v:109:y:2020:i:c:p:88-100
    DOI: 10.1016/j.jbusres.2019.11.078
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    3. Wang, Cindy Xin & Yuan, Hong & Beck, Joshua T., 2022. "Too tired for a good deal: How customer fatigue shapes the performance of Pay-What-You-Want pricing," Journal of Business Research, Elsevier, vol. 144(C), pages 987-996.
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    6. Roy, Rajat & Das, Gopal, 2022. "The role of contextual factors in increasing Pay-What-You-Want payments: Evidence from field experiments," Journal of Business Research, Elsevier, vol. 139(C), pages 1540-1552.
    7. Shahid Nawaz & Yun Jiang & Muhammad Zahid Nawaz & Syeda Farzana Manzoor & Ruixue Zhang, 2021. "Mindful Consumption, Ego-Involvement, and Social Norms Impact on Buying SHC: Role of Platform Trust and Impulsive Buying Tendency," SAGE Open, , vol. 11(4), pages 21582440211, November.
    8. Ma, Xuejing & Wang, Zetao & Liu, Hongju, 2022. "Do long-life customers pay more in pay-what-you-want pricing? Evidence from live streaming," Journal of Business Research, Elsevier, vol. 142(C), pages 998-1009.
    9. Ningyan Cao & Normalisa Md Isa & Selvan Perumal, 2023. "Effects of Risk Attitude and Time Pressure on the Perceived Risk and Avoidance of Mobile App Advertising among Chinese Generation Z Consumers," Sustainability, MDPI, vol. 15(15), pages 1-18, July.
    10. Zhang, Yundi & Zhang, Tingting & Yan, Xiangbin, 2024. "Understanding impulse buying in short video live E-commerce: The perspective of consumer vulnerability and product type," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    11. Huang, Rui & Huang, Minxue & Zhao, Jing & Liu, Yuan, 2024. "Absence makes the heart grow fonder: The interactive effect of crowding information and spatial distance on consumers’ patronage intention," Journal of Business Research, Elsevier, vol. 176(C).

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