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Individual differences and moral disengagement in Pay-What-You-Want pricing

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  • Narwal, Preeti
  • Rai, Shivam

Abstract

The present research explores the role of psychological reactance, individual precursors and moral disengagement in explicating customer behaviour in Pay-what-you-want (PWYW). Psychological reactance is examined with individual factors i.e., empathy, positive reciprocity beliefs, consumer cynicism, self-enhancement and moral disengagement in PWYW. Mediating impact of moral disengagement on customers’ distinct psychological differences and willingness-to-pay is also explored. Study 1 operationalised complete freedom to choose the prices (no price suggestion) with the student population to arouse a lower level of reactance. Study 2 triggered a higher level of reactance by restricted freedom to choose the prices (price suggestions) with a non-student sample and two moderators i.e., perceived threat to freedom and proneness to psychological reactance. Empathy and positive reciprocity beliefs significantly impact moral disengagement. Individuals with higher cynicism and self-enhancement traits are more likely to disengage from moral concerns. Individuals with higher moral disengagement tendencies are likely to exhibit lower payment intentions.

Suggested Citation

  • Narwal, Preeti & Rai, Shivam, 2022. "Individual differences and moral disengagement in Pay-What-You-Want pricing," Journal of Business Research, Elsevier, vol. 149(C), pages 528-547.
    • Handle: RePEc:eee:jbrese:v:149:y:2022:i:c:p:528-547
    DOI: 10.1016/j.jbusres.2022.05.029
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