Motivated Valuation: a Motivational Perspective on the Disparity Between Willingness-To-Accepted and Willingness-To-Pay

Francine Espinoza, ESMT Berlin, Germany
Joydeep Srivastava, R. H. Smith School of Business, University of Maryland, USA
We propose an alternative explanation for the disparity between willingness-to-accepted (WTA) and willingness-to-pay (WTP). We argue that sellers and buyers differ primarily in their intrinsic motivational orientation. Unlike the loss aversion explanation, which suggests that both sellers and buyers are concerned with what they are giving up, we propose that sellers are concerned with what they are getting whereas buyers are concerned with what they are giving up. Consequently, sellers are motivated to maximize what they are getting and buyers are motivated to minimize what they are giving up. Results of five studies are consistent with a motivated valuation explanation.
[ to cite ]:
Francine Espinoza and Joydeep Srivastava (2010) ,"Motivated Valuation: a Motivational Perspective on the Disparity Between Willingness-To-Accepted and Willingness-To-Pay", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 614-615 .