The impact of consumers- purchasing habits on willingness to pay

Abstract

Human habits are an important determinant of consumers’ willingness to pay and purchase decisions. This thesis aims at investigating for which products consumers form purchasing habits, how habits influence willingness to pay and how consumers assess the influence of habits on their behavior. Two online surveys based on the Self Report Habit Index (SRHI) and a qualitative study were conducted. The results suggest that purchasing habits are primarily formed for consumable products, that habits are a stronger predictor of willingness to pay than self-reported product liking, and that consumers are unaware of their habits’ influence.