An empirical investigation of the influence of cost information on willingness to pay for public aerobics classes

Abstract

This study considers the way in which the consumer forms willingness‐to‐pay levels for a specific recreation service. An information processing perspective provides a framework within which social judgment and adaptation level theories are used to assess consumer response to questions regarding such willingness. The context under which valuation is made may influence this response and subsequent maximum willingness‐to‐pay levels.

An experiment is reported in which contextual information relating to the cost of providing a public aerobics program was offered. Maximum willingness‐to‐pay levels of subjects who received cost information were 27% higher than those who received only program information.

Levels of involvement and participation were found to influence subjects’ response to the cost‐related contextual cues. Subjects who had both a high level of emotional commitment toward aerobics and had participated in an aerobics program within the last year displayed a 55% increase, whereas nonparticipants’ levels were increased by 20%.

Keywords:

• Experiment
• contextual cues
• willingness to pay
• cost and program information
• involvement
• participant