The uncertain value of uncertainty: When consumers are unwilling to pay for what they like

Alice Moon
Wednesday, December 14, 2016

Understanding how much consumers value products is crucial for marketers. Though past research has assumed that pricing measures (e.g., willingness-to-pay) and rating measures (e.g., enjoyment) make similar predictions for consumer valuation, across several studies, we find that these measures make opposite predictions under uncertainty. Namely, when considering pricing measures (e.g., willingness-to-pay), uncertain prospects are evaluated negatively, whereas when considering rating measures (e.g., enjoyment), uncertain prospects are evaluated positively. We empirically test possible explanations and discuss crucial implications for both theory and applications.