Utilizing the Framework of Construal Level Theory: An Empirical Study on the Connection between Psychological Distance and Individuals' Willingness to Pay

The goal of this study was to investigate whether the willingness to pay (WTP) depends on the construal level and on the four psychological distances (temporal, spatial, hypothetical and social). Due to the fact that an abstract (global, detached) mind set is activated with greater distance, it is assumed that WTP increases concurrently. An online survey with N = 202 participants was carried out, including a total of 24 closed questions. In line with the assumption, test subjects showed a higher WTP with an increase in spatial, hypothetical and social distance. Only the results with respect to temporal distance showed the opposite. With regard to the combination of two psychological distances, no major effect on the WTP was shown as well as no influence of income on the level of WTP was found. Only in near temporal and spatial context the results did indicate a difference in WTP due to the income of the subjects.