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

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 custom...

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Main Authors: Sharma, Piyush, Roy, Rajat, Rabbanee, Fazlul
Format: Journal Article
Published: Elsevier 2019
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/77449
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author Sharma, Piyush
Roy, Rajat
Rabbanee, Fazlul
author_facet Sharma, Piyush
Roy, Rajat
Rabbanee, Fazlul
author_sort Sharma, Piyush
building Curtin Institutional Repository
collection Online Access
description 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 literature, these findings would help managers understand the direct and indirect effects of situational variables on customers' PWYW pricing decisions.
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institution Curtin University Malaysia
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publishDate 2019
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spelling curtin-20.500.11937-774492022-12-16T01:01:25Z Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing Sharma, Piyush Roy, Rajat Rabbanee, Fazlul 1505 - Marketing 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 literature, these findings would help managers understand the direct and indirect effects of situational variables on customers' PWYW pricing decisions. 2019 Journal Article http://hdl.handle.net/20.500.11937/77449 10.1016/j.jbusres.2019.11.078 http://creativecommons.org/licenses/by-nc-nd/4.0/ Elsevier fulltext
spellingShingle 1505 - Marketing
Sharma, Piyush
Roy, Rajat
Rabbanee, Fazlul
Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing
title Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing
title_full Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing
title_fullStr Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing
title_full_unstemmed Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing
title_short Interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (PWYW) pricing
title_sort interactive effects of situational and enduring involvement with perceived crowding and time pressure in pay-what-you-want (pwyw) pricing
topic 1505 - Marketing
url http://hdl.handle.net/20.500.11937/77449