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Cultural Differences Affect Voluntary Payment Decisions

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Veröffentlicht am

Presentation from the Eight European Workshop on Cultural Applied Economics

Krakow, September 2017

Veröffentlicht in: Reisen
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Cultural Differences Affect Voluntary Payment Decisions

  1. 1. Cultural Differences Affect Voluntary Payment Decisions: Evidence from Guided Tours Anna Kukla-Gryz, Peter Szewczyk and Katarzyna Zagórska
  2. 2. Research question Which cultural values are significant determinants of the cross-country differences in the size of PWYW payments? 2 Hofstede's dimensions Schwartz's values World Values Survey PWYW payments for Free Tour
  3. 3. 3 Does it really matter? The Manchester’s Halle Orchestra Nottingham Playhouse The Guggenheim Museum, New York PWYW nights in the Dallas Theater Center  No investigation on cross-cultural differences on the magnitude of PWYW (Natter & Kaufman 2015)
  4. 4. Data Collecting – The Tour 4  Orange Umbrella Tours – Warsaw Old Town Tour  Voluntary donation system (payment at the end of the tour)  Summer 2016, weekdays @ 11 a.m. – 1 p.m.  Survey: 2 parts, anonymous,voluntary  Purpose of research not revealed  Incentive: ice cream coupon  Average tour size: 20.4 tourists
  5. 5. Sample – Tourists’ Profiles 5 478 tourists  404 before & after, 72 only after, 2 only before Mean payment: 21 PLN 50 different countries  UK (12%), Germany (11.7%), USA (10.4%) 80% had high or very high expectations 71% had previously attended a tour of same format Number of participants in a tour varied from 7 to 35 Mean age: 24
  6. 6. Hypotheses 6 Hofstede Schwartz WVS Power distance - Egalitarianism v. hierachy Leisure Masculinity + Harmony v. mastery Unselfishness Uncertainty avoidance - Intellectual/affective autonomy from conservatism Charity Indulgence + Fairness Satisfaction with one’s finances
  7. 7. Results, Hofstede’s cultural dimensions 7 Av. PWYW Power Distance Masculinity Uncertainty Avoidance Power Distance (n=45) -0.2771* Masculinity (n=45) -0.1337 0.2183 Uncertainty Avoidance (n=45) -0.3049** 0.2280 0.0660 Indulgence (n=48) 0.4629*** -0.2915* 0.0626 -0.1252
  8. 8. Results , World Value Survey values 9 Av. PWYW Leisure Unselfishness Charity Fairness Leisure (n=27) 0.4875*** Unselfishness (n=27) -0.0912 0.0525 Charity (n=27) 0.5243*** 0.3041 0.0992 Fairness (n=27) 0.4453** 0.3402* -0.2936 0.5769*** Finances (n=28) 0.6468*** 0.4677** 0.0624 0.5687*** 0.4902**
  9. 9. Results, Schwarz national values 10 From the Schwarz national values only the mastery/ harmony score is positively (and significantly) correlated with the size of the PWYW payments, suggesting that the decision about the size of the voluntary payment gives a consumer the possibility to display his or her material success.
  10. 10. Model 1, Multilevel Regression Model 11 𝑃𝑊𝑌𝑊𝑖,𝑗,𝑘 = 𝛽1 𝑀𝑎𝑖𝑛𝑂𝑟𝑇𝑖𝑝 𝑘 + 𝛽2 𝑇𝑜𝑢𝑟𝑆𝑖𝑧𝑒 𝑘 + 𝛽3 𝑂𝑣𝑒𝑟𝑎𝑙𝑙 + 𝛽4 𝑇𝑜𝑢𝑟𝑁𝑢𝑚𝑏𝑒𝑟𝑘 + 𝛽5 𝐴𝑔𝑒 𝑘 + 𝛽4 𝑆𝑒𝑥 𝑘 + 𝛽7 𝐺𝑢𝑖𝑑𝑒𝐺𝑒𝑛𝑑𝑒𝑟 + 𝜇𝑖 +𝜇𝑖𝑗 +𝑒𝑖𝑗𝑘
  11. 11. Results, Multilevel Regression Model 12 Fixed Effect Parameters Main Compensation or Tip 6.008** 6.058*** 5.888*** 5.847*** (2.535) (1.705) (1.686) (1.686) Tour Size -0.303 -0.114 -0.119 -0.143 (0.165) (0.123) (0.121) (0.112) Age 0.232*** 0.258*** 0.253*** 0.254*** (0.077) (0.056) (0.054) (0.054) Sex 0.740 -0.134 0.068 0.105 (2.069) (1.508) (1.487) (1.485) Guide’s Gender 2.653 -0.790 -0.919 (2.417) (1.730) (1.174) Overall 0.394 0.957 (1.458) (1.128) Previous Tour Number --0.084 (0,288) Constant 13.058 8.104 12.811** 12.723*** (8.053) (6.600) (4.654) (4.443) Random Effect Parameters 𝜇𝑖 0,000 3.759 4.355 4.264 𝜇𝑖𝑗 3.044 2.549 2.950 3.025 𝑒𝑖𝑗𝑘 15.689 15.112 15.006 15.005 Observations 243 418 423 423 Number of groups 4 4 4 4 Number of Countries 37 43 43 43
  12. 12. Conclusions (1) 13 Cultural factors affect voluntary payment decisions. The size of the PWYW payment are higher in a societies: - with lower acceptance that the power in a society is distributed unequally - with higher tolerance for unorthodox/ unusual behaviour and ideas - which are more willing to freely gratify themselves donate higher amounts. - with higher involvement in charity, perception of fairness and happiness with finances. The success of the implementation of the PWYW payment scheme may vary across the countries.
  13. 13. Conclusions (2) 14 - No evidence that an individual’s voluntary payment decreases over time, i.e. with the number of free tours previously taken. - No evidence that the magnitude of the individual voluntary payments decreases with the size of the tour group. If PWYW is introduced than the rules of service or good remuneration should be clearly explained, i.e. if the voluntary payment is the main form of compensation. BUT:
  14. 14. Thank you for your attention! More about our research on http://grape.org.pl Twitter: @GRAPE_ORG Facebook: /GRAPE.ORG

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