Trading Between Effort and Money: Consumer Participation and Service Pricing

Lan Xia, Bentley University, USA
Rajneesh Suri, Drexel University, USA
Research in co-production suggests that businesses can treat consumers as partial employees and boost productivity. While some consumers are motivated to do the work by the higher perceived control and convenience, co-production does require consumer effort (i.e., non-monetary input). Little research has examined the process how consumers trade off their effort (i.e., work) with price. In this research we examine factors influencing consumers’ tradeoff between work and money. Using 4 experiments, we showed that for the same work, consumers want to save more but pay less. Further, this main effect is moderated by both consumer and service characteristics.
[ to cite ]:
Lan Xia and Rajneesh Suri (2010) ,"Trading Between Effort and Money: Consumer Participation and Service Pricing", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 934-934 .