Are Teens Willing to Pay More for Their Preferred Goods?
(1) The Neighborhood Academy, Pittsburgh, Pennsylvaniahttps://doi.org/10.59720/19-038
Past research has suggested that brand-loyal adults are willing to pay more for their preferred brand. This study investigated if African American teens are willing to pay more for their preferred brand of honey bun and if, in a real store scenario, a price predetermined by a survey of brand-loyal customers will generate the highest profit. By using a survey of customers who prefer a name-brand honey bun, we found that brand-loyal customers reported they were willing on average to pay $1.26, while non-brand-loyal customers were willing to pay only $1.08. The surveyed price was used in a real store scenario by setting three prices: one lower than the surveyed price, one at the surveyed price, and one higher than the surveyed price. Customers shopped at the store regularly without instruction during the three weeks of price changes. We found the surveyed price produced the most profit. Our findings suggest that not just brand-loyal adults, but also brand-loyal African American teens are willing to pay more for a preferred brand of food product. Additionally, our study shows that surveying customers is an effective way to identify brand-loyal consumers and determine the ideal price to maximize profit for a particular product.