Less Willing to Pay But More Willing to Buy: Preference Reversals For Freebie and Non-Freebie Bundles

Zoe Lu, University of Wisconsin - Madison, USA
Christopher Hsee, University of Chicago, USA
Five experiments demonstrate that when preferences are elicited in the form of WTP, consumers favor the non-freebie bundle over the freebie bundle, whereas when preferences are elicited in the form of WTB, consumers favor the freebie bundle over the non-freebie bundle. We propose a inference-based account for such preference reversal.
[ to cite ]:
Zoe Lu and Christopher Hsee (2016) ,"Less Willing to Pay But More Willing to Buy: Preference Reversals For Freebie and Non-Freebie Bundles", in NA - Advances in Consumer Research Volume 44, eds. Page Moreau and Stefano Puntoni, Duluth, MN : Association for Consumer Research, Pages: 541-542.