KUBALOVÁ, Radka and Martin KLEPEK. JUDGEMENT BIAS AND CONSUMER WILLINGNESS TO PAY: EMPIRICAL STUDY. Acta academica karviniensia. Karviná: Obchodně podnikatelská fakulta v Karviné, 2022, vol. 22, No 1, p. 87-94. ISSN 2533-7610.
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Basic information
Original name JUDGEMENT BIAS AND CONSUMER WILLINGNESS TO PAY: EMPIRICAL STUDY
Authors KUBALOVÁ, Radka (203 Czech Republic, belonging to the institution) and Martin KLEPEK (203 Czech Republic, guarantor, belonging to the institution).
Edition Acta academica karviniensia, Karviná, Obchodně podnikatelská fakulta v Karviné, 2022, 2533-7610.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50204 Business and management
Country of publisher Czech Republic
Confidentiality degree is not subject to a state or trade secret
WWW URL
RIV identification code RIV/47813059:19520/22:A0000315
Organization unit School of Business Administration in Karvina
Keywords in English consumer behaviour; context; covid-19; insurance; irrationality; willingness to pay
Changed by Changed by: Miroslava Snopková, učo 43819. Changed: 11/4/2023 20:56.
Abstract
The recent COVID-19 pandemic brought the focus on the shift in the consumer habits, consumption and spending, as well as the new sides consumers‘ (ir)rationality, especially in the terms of the panic stock-up purchases and herd behaviour. In this paper, we use the COVID-19 crisis as an opportunity to empirically test the bias in the consumer judgments. Using a simple survey experiment among college students, the difference in their willingness to pay monthly for a life insurance under the COVID-19 frame and general, non-COVID-19 frame is examined. According to the obtained results, it was found out the subjects were willing to pay higher amount for the insurance when the question was framed by the COVID-19 context. This result generally supports the previously found empirical evidence on the influence of the judgment heuristics, importance of the context frame and the consumer irrationality. Practical implications for small and medium enterprises are discussed at the end of the paper.
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