FACTORS AFFECTING CONSUMER’S WILLINGNESS TO PAY FOR NANOTECHNOLOGY-BASED PRODUCT A CASE STUDY: NASHO

• Main Author: Raymond Edessias, Keany
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/48877
• Institution: Institut Teknologi Bandung

Nanotechnology has been popular in many countries for the last two decades because the implementation of nanotechnology can make the transformation of advanced manufacturing to make products better, cheaper, and greener. However, in Indonesia, the nanotechnology implementation is still limited due to a lack of skilled human resources and research funding. Therefore, nanotechnology-based products targeted for the end customer are still hard to find in Indonesia. This condition evokes the new upcoming business in this field requires additional effort to know the market preferences for their buying decision toward nanotechnology-based products that affect their willingness to pay. In this study, the researcher has objectives to analyze the consumer’s willingness to pay for nanotechnology-based products and to know what factors influence consumer’s willingness to pay for nanotechnology-based products; thus, the company can improve sales and profitability. The sample consists of 375 eyeglass users who domicile in Indonesia who have educational background diploma at minimum. In this research, the researcher uses variable price consciousness, price-quality inference, and product involvement as dependent variables, and the consumer’s willingness to pay is the independent variable. This research uses a quantitative method using a path regression model to test the hypothesis and contingent valuation method to determine the consumer's willingness to pay. Findings confirm that product involvement and price-quality inference has positive influence toward consumer’s willingness to pay and the consumer’s willingness to pay for nanotechnology-based eyeglasses cleaning product is Rp 38.604,99, or it is 10% higher from the current setting price.