Software, The findings demonstrate the utility of HBM constructs in understanding COVID-19 vaccination intent and WTP. © copyright 2003-2020 Study.com. Income elasticities of willingnessto pay, not to be confused with incomeelasticities of demand, are estimated for abroad range of environmental services inSweden. - Definition & Example, What is Marginal Utility? A higher proportion (92.5%) perceived benefit of the COVID-19 vaccine in reducing the risk of infection and resultant complications. Yes This means as the price increases, more consumers leave the market for the product in question because they are not willing to pay the higher price. No, Is the Subject Area "Vaccine development" applicable to this article? The consumer's need for a particular product is demand. on a nine-point scale (CNY¥100/US$14 to CNY¥900/US$125, at a currency ratio of 7:1). Furthermore, this study also found that the highest marginal WTP for the vaccine was influenced by socio-economic factors and younger aged people expressed/reported higher marginal WTP. This information is especially important to provide insights into targeted intervention for improving vaccine coverage, particularly in high virus circulating settings. Hence, the quantity demanded stays at 1 pound when the price is $4. The willingness to pay starts to increase as income moves up, and jumps to $1462 for households with incomes less than $50,000. Specifically, the approach adapts the Armington equation to model a change in consumers' willingness to pay for imports. A high proportion of a definite intention among participants from the central and southern regions corresponds with high numbers of confirmed cases, indicating that people from regions badly impacted by the coronavirus expressed a higher vaccination intention. Under the perceived barriers construct, concerns about the COVID-19 vaccine being faulty/fake and affordability were reported by 82.0% and 75.1%, respectively. Willingness to pay (WTP) has been defined as the maximum amount of money a customer is willing to spend for a product or service (Cameron and James, 1987; Krishna, 1991). Willingness to pay (WTP) is a key component of consumer demand, and is critical knowledge for a business in the process of pricing their product.” “Demand is factored into determining the “best” price, which will satisfy both producer and consumer when the good or service … Investigation, On 11 March 2020, the World Health Organization (WHO) declared COVID-19 a worldwide pandemic. By a more specific breakdown, the majority responded probably yes (54.8%; 95% CI 53.2–56.5) followed by definitely yes (28.7%; 95% CI 27.3–30.3%). The perceived barriers against COVID-19 immunizations found in this study, namely worries about side effects and the efficacy of the vaccine, have likewise been reported in other studies related to the introduction of a new vaccine . State Key Laboratory of Molecular Vaccinology and Molecular Diagnostics, National Institute of Diagnostics and Vaccine Development in Infectious Diseases, School of Public Health, Xiamen University, Xiamen, Fujian, China, Roles The willingness-to-pay for the COVID-19 was determined and was found to be positively associated with income. 3. Explain how 'seller' costs, producer surplus, and the Supply Curve are related. Economics Principles of Macroeconomics (MindTap Course List) Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. No, PLOS is a nonprofit 501(c)(3) corporation, #C2354500, based in San Francisco, California, US, https://doi.org/10.1371/journal.pntd.0008961, https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/AC89XZ, https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200529-covid-19-sitrep-130.pdf?sfvrsn=bf7e7f0c_4, https://www.who.int/who-documents-detail/draft-landscape-of-covid-19-candidate-vaccines, https://www.nytimes.com/2020/05/02/us/politics/vaccines-coronavirus-research.html, https://doi.org/10.1016/j.socec.2012.05.001, https://www.nytimes.com/2020/05/04/business/coronavirus-china-vaccine.html, http://dx.doi.org/10.1177/109019817400200407, http://www.stats.gov.cn/tjsj/pcsj/rkpc/6rp/indexch.htm, https://www.ceicdata.com/en/china/household-income-distribution-urban, https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200531-covid-19-sitrep-132.pdf?sfvrsn=d9c2eaef_, https://doi.org/10.1007/s11747-019-00666-6, 83.5% reported vaccination intent, of which only 28.7% stated a definite intent, Perceived benefits have a strong and positive effect on vaccination intention, Concerns of side-effects and efficacy were perception of barriers that negatively influence on vaccination intention. A basic finding is that income tends toinfluence willingness to pay positively andsignificantly. In China, obligatory vaccines or Category 1 vaccines are made available through the government’s Expanded Program on Immunization (EPI) at no charge for children up to 14 years old [8,9].The Category 2 vaccines, including the influenza vaccines, must be purchased by the public, and thus have a price barrier . Demand and willingness to pay for different treatment and care services among patients with heart diseases in Hanoi, Vietnam Bach Xuan Tran,1,2 Giang Thu Vu,3 Thu Hong Thi Nguyen,4 Long Hoang Nguyen,5 Dat Dinh Pham,4 Viet Quang Truong,4 Thao Phuong Thi Thai,6 Thuc Minh Thi Vu,7 Tuan Quoc Nguyen,8 Vu Nguyen,9 Trang Huyen Thi Nguyen,10 Carl A Latkin,2 Cyrus SH Ho,11 Roger CM Ho12 … e0008961. The findings of this survey should be interpreted in light of the above-mentioned limitations. To ensure population-wide access, the coronavirus vaccine should be provided free of charge or at a subsidized rate to low-income individuals. All rights reserved. In vaccination decisions, the decision to vaccinate depends on the WTP of an individual for a vaccination to obtain increased health benefits . Writing – review & editing, * E-mail: email@example.com (YL); firstname.lastname@example.org (ZH); email@example.com (LPW), Affiliation 2. In the absence of a vaccine or effective treatment, all the nations worldwide are struggling to contain the spread of the COVID-19 with the enforcement of quarantine and lockdowns, social distancing measures, community-use of facemasks at all times, and travel restrictions. The participants had low perceptions of susceptibility. It is a measure of the value a person assigns to a consumption or usage experience in monetary units. The traditional approach to pricing based on costs works to pay the bills, but it leaves revenue on the table. Is the Subject Area "COVID 19" applicable to this article? Methodology, Roles Income level was also found significantly moderated the relationship between perceived severity and WTP (β = 3.980, p = 0.026). In general, the willingness to pay a price premium decreases as the price premium increases, consistent with the law of demand. Being self-employed (OR = 1.66, 95% CI 1.07–12.59)and in a service occupation (OR = 1.61, 95% CI 1.05–2.49)were also significant correlates of a definite intention to vaccinate. In a supply/demand diagram, discuss using your own answer from the notes and … 2020YJ003; ZH). The identified barriers in this study, namely concerns about efficacy and vaccine adverse events, emphasize that although the search for the COVID-19 vaccine needs to be accelerated, the new vaccine should not bypass established safety and efficacy standards before it is made available to the general public. 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