Reaction Time as a Psychophysiological Predictor of Willingness-to-Pay

The aim of the study is to find a psychophysiological correlate of the optimal price for a product in a naturalistic market context. Under optimal price we understand the maximum price at which there is a willingness to buy a product. Previous studies indicate a relationship between the speed of reaction time (RT) to the question of willingness to buy a product and its price. We tested this hypothesis and using a regression model found out the optimal price for a given product, which was subsequently compared with the market price. We conducted a behavioral study with 30 participants who were randomly presented with product images and prices ranging from RUB 1 to RUB 160. The study was conducted using the Pavlovia online platform, which measures the response time between a stimulus and a pressing button. After data processing, we found a relationship between the reaction rate and the price R ^ 2 = 0.338. To establish the maximum price, we built a regression cubic polynomial model, which describes this dependence most successfully in comparison with others. Using this model, we got the optimal price for the product (in our case, B.Yu. Aleksandrov's cheese) 40 rubles - this is the price at which the average RT of the participants was maximum. This price corresponds to the real price in supermarkets. This conclusion is based on information provided by the marketing department of the company. We also used a reference product - Rostagroexport glazed curd cheese, which price is about 40-45% lower. The optimal price for Rostagroexport was 31 rubles at the maximum level of reaction time. First, our study shows the potential of using the RT, which is an objective measure of human behavior in comparison with the results of questionnaires, and secondly, the relation among RT and price that we observed allows us to determine the inflection point of the function corresponding to the maximum price. Since the RT measure also correlates with the results of measurements of evoked activity, for example, the N400 correlate of ERP, in future studies we plan to focus on the analysis of brain correlates of processing price information, which will provide even more information on the possibilities of objectively assessing the products preferences depending on their price. We believe that in order to find a more accurate model in the future, it is important to take into account the individual differences between the participants, as well as the factor of the frequency of contact with the product.