Production enjoyment asymmetrically impacts buyers’ willingness to pay and sellers’ willingness to charge
Paley,Anna Smith,Robert Teeny,Jacob Zane,Daniel
Paley,Anna
Smith,Robert
Teeny,Jacob
Zane,Daniel
Abstract
With the rise of social media and the peer-to-peer economy, sellers can easily tell potential buyers about themselves and their process of producing products and services. This research investigates the influence of a central aspect of the production process that sellers can communicate—their production enjoyment. Buyers are willing to pay a higher price, are more likely to click on ads, and are more likely to choose a product or service when the seller signals that they enjoy producing it. In contrast, sellers are willing to accept lower prices, and actually charge less, for products and services they enjoy producing. Both buyers and sellers make the inference that production enjoyment leads to higher quality products/services, but only buyers rely on this inference when forming their pricing judgments relative to sellers. Nine studies illustrate these effects across a wide variety of products and services, participant samples, and operationalizations of production enjoyment. They show that signals of production enjoyment can influence buyers more than other established signals (e.g., effort) and demonstrate contexts where these effects are more and less likely to occur. These findings offer practical recommendations for both buyers and sellers as well as a variety of theoretical contributions.
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Publisher Copyright: © The Author(s) 2024.
Date
2024-11
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Paley, A, Smith, R, Teeny, J & Zane, D 2024, 'Production enjoyment asymmetrically impacts buyers’ willingness to pay and sellers’ willingness to charge', Journal of Marketing, vol. 88, no. 6, pp. 85-102. https://doi.org/10.1177/00222429241257913