Individuals’ payment choices can be considered a window to their preferences and personality (Baumeister, 1999). This is supported by the empirical data of the interviews that imply that paying patterns under the PWYW pricing mechanism are driven by self-image and social- image concerns (Gneezy et al. 2012; Grossman, 2010). The findings from the interviews
65 indicate that people in postmodern society pay because they want to send positive signals to themselves (self-image) or to others (social-image).
Self-Signaling
The interview data revealed that positive amounts were paid due to self-signaling motives. This demonstrates Generation Y’s caring notion towards their self-image, and hence, their willingness to pay for digital products under PWYW conditions, which they otherwise could receive for free. The following quotes underline this assumption.
That is why it gives me a positive feeling, and encourages me that what I do [paying]
is the right thing. Would I not pay I would feel bad about it. [Anne]
I felt good about myself when doing it [paying]. Because I did something good.
[Hannes]
This negative feeling is entirely missing online. On the Internet I give something for
myself and feel better too. [Hannes]
Notable in this context, those interviewees expressing a high degree of social competence (see Table 3-1) also showed a high level of self-signaling motives. This matter of fact indicates a correlation between intrinsic motivation and self-signaling motives. Moreover, self-signaling motives assist to unveil the values of Generation Y consumers under PWYW conditions as expressed in the subsequent quotes.
I like PWYW because it provides me with a good feeling without having the social pressure … I would like to decide on my own how much I want to pay without being
guided. [Hannes]
I like it [PWYW pricing model] because you don’t have the pressure that you have to
pay something that somebody has decided beforehand. You are able to decide on
your own how much you want to pay … that means on the one side more
participation in everyday life and on the other side it includes a social element implying that people who don’t possess that much money or don’t want to pay that much, err, can participate as well. [Anne]
The statements underline the fact that paying behaviour for ‘self-signalers’ remained constant even in the anonymous online environment in which outside observers are not evident. Moreover, these ‘self-signalers’ prefer the anonymous environment, because they pay for themselves and are not forced by other people or social norms to act in a certain way. The anonymity of the paying process assists them in receiving a better feeling, and it further
augments intrinsic motivation in general as it allows them to receive an increased feeling of autonomy (Hershatter & Epstein, 2010). This also indicates that in case social norms or interpersonal relations force them to pay, it might actually have counterproductive effects, crowding out their intrinsic motives - thus harming their self-image, and moreover leading to a generally negative perception of a product or even brand (Deci & Ryan, 1985). It is therefore assumed that the PWYW pricing model as a marketer-generated instrument helps to decrease the ‘overjustification effect’ in ‘self-determination theory’ and increase the individual’s intrinsic motivation in an online environment (Deci & Ryan, 1985). Moreover, Generation Y consumers appreciate the PWYW pricing mechanism for its participative and active elements. By applying the novel strategy they are able to take part in the price setting process, which in turn provides them with a feeling of autonomy and flexibility instead of being passively exposed to marketing activities.
Social-Signaling
Another finding that was uncovered throughout the interviewing process is that the interviewees pay positive amounts because they want to send positive signals to others or protect themselves from their resentment. These consumers change their behaviour when others are watching in order to improve their impression in front of them. This was particularly obvious in the special case of interviewee ‘Erik’ as can be noted from the subsequent statements.
If I don’t tip I am afraid that I might be labeled greedy. I don’t want to be labeled greedy. Specifically not in front of those other people also sitting at the table. [Erik] I don’t want people to spit in my food the next time, err, and I don’t want the grudge
of other people in general. [Erik]
The empirical data further gives occasion to suspect that Generation Y consumers, such as in the case of ‘Erik’, tend to construct their identity in front of or with the help of other people and are hence mainly extrinsically motivated. For these so-called ‘social-signalers’ it is essential that the act of paying under PWYW conditions is conveyed to others. Therefore, in an online enviroment in which no interpersonal contact exists, these ‘social-signalers’ would not pay after all. Furthermore, it underlines the assumption that there is a correlation between extrinsic motivation and social-signaling motives, meaning, when individuals are more extrinsically motivated they also tend to have a stronger need to show or ‘boast’ their good deeds to other people.
Having considered the empirical findings, they further provide evidence that in today’s consumer culture identity will be formed and constructed through a signaling mechanism. In
67 other words, parts of Generation Y consumers tend to pay because it is a gesture to the self or a gesture that is largely tied to other people and their surrounding. This in turn induces to believe that in offline environments both the self-signaling and the social-signaling model lead to non-selfish behaviour, meaning consumers will pay positive amounts in any case due to self- as well as social-signaling motives, whereas in online environments, only the self- signaling model leads to non-selfish behaviour. This is to say, ‘self-signalers’ do not rely on external forces because they mainly care about their self-image, which is why they are willing to pay positive amounts for digital products in an online environment.