Determination of Additional Willingness to Pay for Socially Responsible Technical Products Using Discrete Choice Analysis

Abstract

Previous studies examined additional willingness to pay for socially responsible primary goods. However, technical products have not been considered. Therefore, the purpose of this study is to estimate additional willingness to pay for socially responsible technical products. Within an overview of given methods for measuring willingness to pay, the discrete choice analysis was applied to this study. As technical products, computer mice were chosen exemplary, since there is a partially fair mouse available. It was found that two of three fair labeled mice have a negative willingness to pay. Only consumers of the fair produced and labeled mouse has a positive willingness to pay. The consumers pay perhaps more attention to the aspect of social responsibility, if presented brands are comparatively unknown. In this connection, consumers allocate a higher value to social responsibility.