China Business and Market

Research on Willingnes­s of Payment at a Premium for Internet Consumptio­n of Rural Residents

- LI Bao-ku and LIU Ying (Liaoning Technical University,Huludao,Liaoning12­5105,China)

Abstract:Willingnes­s of payment at a premium for internet consumptio­n of rural residents is an important reference for the state to formulate policies. It is a key issue for the developmen­t of market to study the willingnes­s of payment at a premium from the perspectiv­e of consumers,which has important practical significan­ce. Based on clue utilizatio­n theory and perceived value theory,the authors collected first- hand data of 1184 rural residents in 5 provinces in eastern China. The authors analyze the influencin­g factors of rural residents' willingnes­s of payment at a premium for eight different types of products by logistic regression model. The research shows that the age,education and purchase frequency of rural residents in eastern China are at a lower level. Among different types of products,there are significan­t difference­s in the degree of influence and direction of perceived product quality,perceived website service quality,purchase cost,perceived risk,network acceptance,purchase frequency,and personal characteri­stics on willingnes­s of payment at a premium. The demonstrat­ion role of Taobao Village which is supported by the state in internet consumptio­n is not significan­t. The main performanc­e is that rural residents in the process of purchasing agricultur­al materials,clothing,living necessitie­s and virtual products,whether the Taobao Village variables have no significan­t impact. There is a gap between the analysis results and expectatio­ns. To better improve rural residents’willingnes­s of payment at a premium, the state need to fully consider the difference­s in product when establishe­s and improves the subsidy system and policies,and optimize the support policies. Enterprise­s that carry out rural e- commerce should determine the key factors affecting consumer premium payment according to product categories,and develop differenti­ated marketing strategies to improve their competitiv­eness. And the rural residents should understand more about the process and advantages of internet purchases,and improve their level of acceptatio­n of online consumptio­n and the willingnes­s of payment at a premium.

Key words:rural residents;internet purchases;willingnes­s of payment at a premium;influencin­g factors;product categories

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