Willingness to Pay a Price Premium Scale

WTPREMConsumer readiness to pay more for a specific brand or product than for available alternatives, combining a direct premium willingness indicator, a relative price comparison, and purchase likelihood
3 items 2014 α 0.82 Free Newman, G. E., & Dhar, R.

What it measures

Three nine-point items capture the degree to which a consumer is willing to pay a price premium for a focal product or brand. The first item directly asks whether the consumer would pay a premium, the second assesses how much they would pay relative to the average competing product, and the third measures purchase likelihood. The composite scale blends economic willingness-to-pay with purchase intent, making it a behaviorally grounded measure of brand valuation. Each item uses blanks that should be filled with the name or description of the focal product and, for item 2, the alternative product category.

Scale items

Full scale items shown. Always cite the original source when using this scale in research.

Usage notes & scoring

The source of the scale was not identified by Newman and Dhar (2014). The scale was used in Experiment 1 in the context of Levi's jeans, with the phrase 'this particular pair of jeans' filling the blanks for the focal product. The second blank in item 2 should describe the comparison product (e.g., 'the average pair of jeans'). Each item has a distinct set of verbal anchors -- would not pay a premium / would pay a premium (item 1), substantially less / substantially more (item 2), and not at all / very likely (item 3) -- so items are not scale-equivalent in their wording and format. Item 3 is a purchase likelihood item rather than a pure WTP measure; the composite assumes that purchase intent and willingness to pay load onto the same underlying valuation dimension. Researchers requiring a pure WTP measure may prefer to use items 1 and 2 only, though this would require re-validation. Validity was not formally assessed.

Citation

Newman, G. E., & Dhar, R. (2014). Authenticity is contagious: Brand essence and the original source of production. Journal of Marketing Research, 51(3), 371-386.

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Keywords

#willingnesstopay#pricepremium#brandvaluation#purchaseintention#authenticity#brandequity
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