IDEAS home Printed from https://ideas.repec.org/a/taf/ijecbs/v31y2024i3p239-253.html
   My bibliography  Save this article

UK Consumers’ Willingness to Pay for Auto-Renewal Contract Attributes

Author

Listed:
  • Eleanya Nduka
  • Frisk Zhang

Abstract

Firms and consumers widely utilize auto-renewal contracts (ARCs) due to their convenience. However, significant issues associated with ARCs indicate the need for policy intervention to reflect how consumers perceive the trade-offs involved in transitioning from one ARC to another. This study aims to enhance the existing literature by examining consumer preferences regarding alternative ARCs. To achieve this aim, we conducted a discrete choice experiment (DCE) to quantify the inherent trade-offs in ARCs. Our findings reveal several insights. Firstly, consumers prefer receiving auto-renewal reminders closer to the actual renewal date. This indicates they value timely notifications to help them make informed decisions about continuing or canceling their subscriptions. Furthermore, consumers expect traders to cancel inactive auto-renewal subscriptions within a shorter period of inactivity. This finding highlights the importance of addressing consumer concerns regarding on-going charges for services they no longer utilize.

Suggested Citation

  • Eleanya Nduka & Frisk Zhang, 2024. "UK Consumers’ Willingness to Pay for Auto-Renewal Contract Attributes," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 31(3), pages 239-253, September.
    • Handle: RePEc:taf:ijecbs:v:31:y:2024:i:3:p:239-253
    DOI: 10.1080/13571516.2024.2376420
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13571516.2024.2376420
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13571516.2024.2376420?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ijecbs:v:31:y:2024:i:3:p:239-253. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIJB20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.