Description: Willingness to pay refers to the maximum amount a customer is willing to spend on a product or service. This concept is fundamental in marketing and economics, as it allows companies to understand the value consumers assign to their offerings. Willingness to pay is influenced not only by the product’s price but also by factors such as perceived quality, competition, consumer need, and economic situation. Understanding willingness to pay helps companies set strategic prices, segment markets, and maximize their revenue. Additionally, it is a key indicator in decision-making regarding product development and marketing strategies. In an increasingly competitive business environment, knowing customers’ willingness to pay becomes a crucial advantage for the sustainability and growth of organizations.
