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willingness to pay thesis

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In the second wave , market-oriented alternative trading organizations ATOs arose with the aim to stimulate beneficial trade models for producers in developing countries, for example by offering trade conditions without the control of middlemen who would inevitably squeeze prices at the beginning of the supply chain cf. However, the sales volume of FT products was rather small as they were sold mostly in catalogues and world shops during this period.

The third wave was characterized by promoting FT products to a larger consumer base. During the same period, FT also managed to attract attention at international political fora and established FT certification marks. The certification guaranteed that a labeled product meets basic environmental and labor standards, and simplified the interface between producers and customers. From that period onwards, moving into the fourth wave , FT hardened its growth in the mainstream. Over the last ten years, there has been a huge increase of FT sales internationally see Figure 1.

Global sales of FT products almost tripled between and Krier, The worldwide turnover exceeded 2. Nowadays, there are over 2, certified producer organizations and partner organization worldwide and FT products are sold in countries. Hence, FT is no longer a niche market Bauer et al. In Germany, FT products are sold in more than specialist shops so-called "world shops" as well as in conventional stores like Aldi, Tengelmann, or Rewe.

The price-premium represented over 3 million Euros. The growth of the overall sales volume in Germany is similar to the developmental trends observed worldwide. Figure 5 presents the sales volume of FT products in the last decade. The overall turnover of FT products increased over eight times since , and more and more certified products are being sold. Thus, as in other European countries, FT market continues to grow. However, FT certification and labeling are linked to enhanced costs e. Consequently, the prices are higher than those of free trade products Bauer et al.

The present thesis addresses the willingness to pay for FT products. As discussed above, FT products are often more expensive than similar conventional products. Hence, the question arises whether consumers are willing to pay the enhanced price and which highest amount of the price-premium they would accept.

It may be expected that this number significantly increased in the last decade due to the improvement of FT awareness and FT acceptance. The first purpose of the present thesis therefore is to analyze the WTP for FT products as estimated in the most current empirical research studies. However, there may be discrepancies between the claimed and the actual purchase behavior; some people might claim that they would be willing to pay a premium but they do not behave accordingly.

Nicholls and Lee indeed discuss that only a minority of consumers that describe themselves as willing to pay for FT products actually purchase those products. Therefore, the increased WTP as estimated in interviews and surveys need not predict an actual buying behavior.

On the other side, the discussed attitude-behavior gap seems to contradict the sales volume increase in the last years see the previous section. The turnover increase indicates that consumers are not only willing but also actually purchase FT products.

Perhaps the most evidence on actual behavior comes from related field experiments. For example, Prasad et al. The results showed that Similarly, Hiscox and Smyth carried out a field experiment in a major New York City retail store. They picked two brands of towels and two brands of candles that were labeled as being produced under good working conditions.

The researchers first recorded the weekly sales of the towels and candles without labeling any of them. These findings have been supported by the most current field experiment performed by Bauer et al.

Similarly to Hiscox and Smyth , Bauer et al. For example, Auger et al. Similarly, Basu and Hicks found that WTP exhibits an inverted U shape in the sense that people are willing to pay a premium, but only up to a critical price level. The second purpose of the present thesis therefore is to specify how much extra people are willing to pay for FT products. Why should some individuals be more concerned than others to purchase FT products?

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One method we use is a discount system. Your Points are accumulated on your Credit Balance. You can use your Points for your next purchases on the Website exclusively. Seal the deal by directly stating why this example is relevant. The first sentence — the topic sentence - of your body paragraphs needs to have a lot individual pieces to be truly effective. Not only should it open with a transition that signals the change from one idea to the next but also it should ideally also have a common thread which ties all of the body paragraphs together.

For example, if you used "first" in the first body paragraph then you should used "secondly" in the second or "on the one hand" and "on the other hand" accordingly. Examples should be relevant to the thesis and so should the explanatory details you provide for them. It can be hard to summarize the full richness of a given example in just a few lines so make them count.

If you are trying to explain why George Washington is a great example of a strong leader, for instance, his childhood adventure with the cherry tree though interesting in another essay should probably be skipped over. You may have noticed that, though the above paragraph aligns pretty closely with the provided outline, there is one large exception: These words are example of a transitional phrase — others include "furthermore," "moreover," but also "by contrast" and "on the other hand" — and are the hallmark of good writing.

Transitional phrases are useful for showing the reader where one section ends and another begins. It may be helpful to see them as the written equivalent of the kinds of spoken cues used in formal speeches that signal the end of one set of ideas and the beginning of another. In essence, they lead the reader from one section of the paragraph of another. Hopefully this example not only provides another example of an effective body paragraph but also illustrates how transitional phrases can be used to distinguish between them.

Although the conclusion paragraph comes at the end of your essay it should not be seen as an afterthought. As the final paragraph is represents your last chance to make your case and, as such, should follow an extremely rigid format. One way to think of the conclusion is, paradoxically, as a second introduction because it does in fact contain many of the same features. While it does not need to be too long — four well-crafted sentence should be enough — it can make or break and essay.

Effective conclusions open with a concluding transition "in conclusion," "in the end," etc. After that you should immediately provide a restatement of your thesis statement. This should be the fourth or fifth time you have repeated your thesis so while you should use a variety of word choice in the body paragraphs it is a acceptable idea to use some but not all of the original language you used in the introduction.

This echoing effect not only reinforces your argument but also ties it nicely to the second key element of the conclusion: Having done all of that, the final element — and final sentence in your essay — should be a "global statement" or "call to action" that gives the reader signals that the discussion has come to an end. The conclusion paragraph can be a difficult paragraph to write effectively but, as it is your last chance to convince or otherwise impress the reader, it is worth investing some time in.

Take this opportunity to restate your thesis with confidence; if you present your argument as "obvious" then the reader might just do the same.

Although you can reuse the same key words in the conclusion as you did in the introduction, try not to copy whole phrases word for word. Instead, try to use this last paragraph to really show your skills as a writer by being as artful in your rephrasing as possible.

Although it may seem like a waste of time — especially during exams where time is tight — it is almost always better to brainstorm a bit before beginning your essay.


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CONSUMERS’ WILLINGNESS TO PAY USING AN EXPERIMENTAL AUCTION METHODOLOGY: APPLICATIONS TO BRAND EQUITY. By. YAN-MING LI. A thesis submitted in partial fulfillment of.

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Generally, about half of the households surveyed are willing to pay for better drinking water. Most of them are HHs living in two major cities, Hanoi and Ho Chi Minh City. On average for all of the sampled households, the value of willingness-to-pay makes up small percentage of household income, just % of total household income. product perceptions either negatively or cooloload0c.gq addition, the willingness to pay (WTP) literature stipulates that WTP is determined by product attributes and individuals’ characteristics. This thesis therefore seeks to ascertain the factors affecting consumers’ preferences and WTP for.

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