Travellers’ willingness to pay and perceived value of time in ride-sharing: an experiment on China

Abstract

Rapid development of the ride-sharing economy has led to a rising need to better understand travellers' decision making regarding their travel time and cost. The present study conducted a travel choice experiment using smartphone applications, based on data collected from 532 respondents and 2128 stated-preference surveys in China. Based on prospect theory, the experiment utilized a coupon reward policy to analyze how much ride-sharing platforms might influence travellers' choices in both work and leisure contexts. The results of an ordered logit model revealed that older residents were likely to pay more to reduce waiting time. It was further found that tourists had significantly higher probabilities to take expensive alternatives with shorter queueing time. The tourists' value of time was higher than that of residents, while the reward policy employed was found to increase the residents' value of time. Specific theoretical and managerial implications of the findings are discussed. Highlights. It conducted stated-preference surveys regarding travellers' ridesharing choices in China. The choice experiment employed four scenarios: rewarded residents, non-rewarded residents, rewarded tourists, and non-rewarded tourists. The logit model revealed older residents were likely to pay more to reduce waiting time. The tourists' value of time was higher than that of residents. The reward policy increased the residents' value of time, but not that of the tourists ARTICLE HISTORY

Can communication messages affect promotion of international air travel in preparation for the post COVID-19 pandemic era?

“…Interestingly, although this study was carried out under special conditions -- a disastrous pandemic -- the analysis of respondent reactions to the message contents showed consistency in patterns of relationships. The findings also support the utility and prospective theories in that participant preferences for the given message options led to rational decision making to reduce the risks associated with wrong choices and to maximize latent utility ( Chen et al, 2020 ; Karl, 2018 ). From the perspective of adaption level theory ( Helson, 1964 ), the findings helped ascertain the comparative magnitude of the stimuli in different message contents and between “gain” and “loss” messages.…”

“…Theoretically, the results can be explained using prospect theory: the pain from losing a certain amount is larger than the pleasure sought from gains ( Tversky & Kahneman, 1992 ). That is, the results stem from an asymmetric perception of risk aversion between potential loss and gain options ( Chen, de Groote, Petrick, Lu, & Nijkamp, 2020 ). Interestingly, “loss” framing to obtain a monetary benefit by taking a flight enhanced the strength of the stimulus more than a “gain” message in increasing behavioral intention to take a flight.…”

To Dine, or Not to Dine on a Cruise Ship in the Time of the COVID-19 Pandemic: The Tripartite Approach towards an Understanding of Behavioral Intentions among Female Passengers

“…The strength of the prospect theory is that it relates to actual choices rather than the most favorable decisions [45]. The dominance of the prospect theory in describing behavioral intentions under risk and uncertainty is well supported by recent studies on the risk evaluation of halal products/services in tourism [46], travelers' ride-sharing choices [47] and the medical tourism destination selection process [48].…”

Foundations of consumption and production in the sharing economy

“…The qualitative method is applied to gain non-numerical insights (e.g., narratives and voices) of consumers and producers in the sharing economy [16]. The quantitative method is employed to acquire numerical or statistical insights of the sharing economy, wherein such insights may manifest in the form of associations (e.g., positive or negative significant or non-significant relationships) [10] or in the form of causality (i.e., control and manipulated conditions to establish causes and effects) [12]. Finally, the review method is used to consolidate insights, locate gaps and emerging trends, and present ways forward for the sharing economy [26].…”