demand and willingness to pay

To ensure population-wide access, the coronavirus vaccine should be provided free of charge or at a subsidized rate to low-income individuals. On 11 March 2020, the World Health Organization (WHO) declared COVID-19 a worldwide pandemic. Perception that vaccination decreases the chances of getting COVID-19 under the perceived benefit construct (OR = 3.14, 95% CI 2.05–4.83) was the strongest predictor for a definite intention. B. the demand for a commodity declines as its price increases. The person has to pay $4, which is more than the marginal benefit. The intention to accept a COVID-19 vaccine was measured using a one-item question (If a vaccine against COVID-19 was available on the market, would you take it?) This study revealed that most were willing to pay an amount of CNY¥100 [US$14] and CNY¥200 [US$28] for COVID-19 vaccine. Supervision, 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. A demand curve is the graphical depiction of the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that price. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. The majority (87.2%) perceived the benefit of feeling less worry of contracting the coronavirus after getting the vaccine. 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. Formal analysis, Writing – review & editing, Affiliation The survey was conducted from 1–19 May 2020. Higher confidence in domestically-made COVID-19 vaccines was also found in this study. Services, Consumer Surplus: Definition, Formula & Examples, Working Scholars® Bringing Tuition-Free College to the Community. Promotional messages framing the benefit of vaccination and concerns about new vaccine safety to enhance vaccine uptake is warranted. It is important to highlight that the perceptions of the severity of COVID-19 and the perceived benefits in obtaining the COVID-19 vaccine were also significant predictors of a definite intention for COVID-19 vaccination; however, perception of susceptibility was not a significant predictor. Income elasticities of willingnessto pay, not to be confused with incomeelasticities of demand, are estimated for abroad range of environmental services inSweden. Fig 4 shows the findings on the confidence of domestic and foreign-made COVID-19 vaccines. Mean willingness-to-pay values for a net started at US$1.10 and grew by US$0.50–1.40 for various attributes such as rectangular shape, large size, and insecticide treatment. These have resulted in the tremendous impairment of physical and psychosocial well-being of people and has driven a massive decline in the global economy. The health belief model (HBM) was used as a theoretical framework for understanding COVID-19 vaccination intent and WTP. It is also noteworthy that the assessment of intention to vaccinate in this study did not account for the other possible factors affecting vaccination intention such as duration of protection of the new vaccine and the need for booster doses which may have a significant influence on participants' intention. Conceptualization, Department of Epidemiology and Health Statistics, School of Public Health, Fujian Medical University, Fuzhou, Fujian, China, All rights reserved. Therefore, this study also attempted to explore vaccine confidence in domestically-made COVID-19 vaccines and vaccine preference. In the last decade, vaccine scandals and a series of reports about the serious side-effects of vaccination have increased vaccination hesitancy and distrust in the country’s immunization program [4]. Thus, the consumer surplus and buyer's willingness to pay are related to each other in this sense. Formal analysis, The participants had low perceptions of susceptibility. - Definition, Theory & Formula, Consumer Preferences & Choice in Economics, What is the Law of Demand in Economics? Hence, imparting adequate information to the public is important, particularly the provision of strong evidence of the safety and efficacy of the vaccine from field trials. Investigation, Visualization, China’s income inequality ranks among the highest in the world and it is largely due to regional disparities and the urban-rural gap [32,33]. Citation: Lin Y, Hu Z, Zhao Q, Alias H, Danaee M, Wong LP (2020) Understanding COVID-19 vaccine demand and hesitancy: A nationwide online survey in China. In economics, willingness to accept (WTA) is the minimum monetary amount that а person is willing to accept to sell a good or service, or to bear a negative externality, such as pollution. The majority disagreed that there was a great chance of getting COVID-19 in the next few months (68.7%), were also not worried about the likelihood of getting COVID-19 (56.8%), and disagreed that it was currently possible that they would get COVID-19 (72.0%). Author summary This study investigated vaccine demand and hesitancy by assessing the intention to vaccinate against COVID-19 and willingness-to-pay. More evidence about public acceptance and the WTP for the COVID-19 vaccine is essential to evaluate the feasibility of the implementation of vaccination programme in China when the vaccine is available and also to provide insights into future pricing considerations, demand forecasts, and the implementation of the national COVID-19 immunization program. 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. A substantial proportion was concerned about fake or faulty COVID-19 vaccines; however, this was not a significant predictor of vaccination intention. Conversely, as the price of a good declines, more buyers enter the market because they are willing to pay the lower prices. No, Is the Subject Area "Vaccines" applicable to this article? © copyright 2003-2020 Study.com. https://doi.org/10.1371/journal.pntd.0008961.t003. 2020YJ003; ZH). 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. Consumer surplus refers to the amount of product's price which the consumer pays reduced from the total product's price consumer willing to pay. HBM constructs have also been used to explain WTP for influenza vaccination [13]. Conceptually, it is constructed as follows: (1) start with a high price; (2) ask all potential buyers how many items they would be willing to buy at that price; (3) make a note of that price and quantity; (4) decrease the price slightly and repeat the process. Methodology, The perception that vaccination decreases the chances of getting COVID-19 under the perceived benefit construct (OR = 3.14, 95% CI 2.05–4.83) and not being concerned about the efficacy of new COVID-19 vaccines under the perceived barriers construct (OR = 1.65, 95% CI 1.31–2.09) were found to have the highest significant odds of a definite intention to take the COVID-19 vaccine. Thus, it is necessary to provide information based on the HBM to enhance the public’s willingness to pay for the vaccine when it available. To illustrate, we estimate the impacts of the World Trade Organization's Trade Facilitation Agreement (TFA). To be a desire a demand, the consumer should have money to purchase and readiness to pay for the goods. Explain how 'seller' costs, producer surplus, and the Supply Curve are related. This is in contrast to willingness to pay (WTP), which is the maximum amount of money a consumer (a buyer) is willing to sacrifice to purchase a good/service or avoid something undesirable. https://doi.org/10.1371/journal.pntd.0008961.g002. On the whole, a total of 2,950 (83.5%; 95%CI 82.3–84.8) participants responded yes to COVID-19 vaccine intent, while only 582 (16.4%; 95%CI 15.2–17.7) responded no. Yes Methods We used contingent valuation to determine how much p… It is important to understand that minute fluctuations in price can have dramatic affect on a consumer’s willingness to pay, depending on demand. The findings of this survey should be interpreted in light of the above-mentioned limitations. Explain how buyers' willingness to pay, consumer surplus, and the demand curve are related. Originally, this method contingent valuation , was used to estimate whether and how much extra people would pay for an environmental good, such as clean air or water. https://doi.org/10.1371/journal.pntd.0008961.g001, https://doi.org/10.1371/journal.pntd.0008961.t001, https://doi.org/10.1371/journal.pntd.0008961.t002. The full area below the demand curve is buyer's willingness to pay, and area above the equilibrium price refers to consumer surplus. The multi-faceted catastrophic consequences associated with the COVID-19 outbreak have intensified international efforts in developing an effective prevention method to keep outbreaks under control. By demographics, multivariable analyses revealed that perceived overall health as very good (OR = 1.74, 95% CI 1.44–2.09) and being in the central region of China were strong significant correlates of having a definite intention to vaccinate against COVID-19. Yes Yes Data Availability: All data files are available from the Havard Dataverse database (https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/AC89XZ). The findings imply that promoting COVID-19 vaccination in the forms of advertorials and testimonials may serve as a cue to action to get vaccinated. Conceptualization, Preference in domestic or foreign/imported COVID-19 vaccine was also queried. Considering that there will be vaccines developed by Chinese manufacturers as well as from other countries, there have been concerns that the public in China is more inclined to choose a foreign-made vaccine over vaccines produced in China [16]. As a seller, willingness to accept is the minimum amount of money you’d demand for your product or service. For more information about PLOS Subject Areas, click Roles WILLINGNESS-TO-PAY AND DEMAND CURVES 371 Finally, the prevalence of third-party payment in the health care systems of industrialised countries means that, in effect, health care is provided to individuals as a portfolio or bundle of available interventions, and that specific interventions are supplied to consumers at zero https://doi.org/10.1371/journal.pntd.0008961.t004. Methodology, Materials and Methods 2.1. The model fit of multivariable logistic regression analysis was assessed using the Hosmer-Lemeshow goodness-of-fit test [20]. Likewise, only significant factors in the univariate analyses, with p-values of <0.05, were selected for the multinomial logistic regression analysis. Thus, these three are closely related to each other. The impact of price on demand was negative but small, with elasticity values between −0.25 and −0.45. The HBM was used to predict vaccination intention and the highest marginal WTP. The results of the multinomial logistic regression (CNY¥300/400 vs. CNY¥100/200 and ≥CNY¥500 vs. CNY¥100/200) revealed that younger aged participants had a higher WTP for an amount of CNY¥300/400 [US$43/57] and ≥CNY¥500 [US$72] over CNY¥100/200[US$14/28]. e0008961. The new coronavirus spread rapidly around the world within a month of its onset. This study found that slightly over half reported that they would only take the COVID-19 vaccine if the vaccine is taken by many in the public. Supervision, The health belief model (HBM), which explains and predicts a variety of human behaviors, is one of the most commonly used models to determine vaccination intention [5]. Data curation, The demand curve for most products illustrates lower levels of demand as prices rise. Reaching a happy medium between the two entities must be done in order to make a sale. Table 1 shows the demographics of our study participants compared with the general adults population in China [22,23]. Demand, Willingness to Pay and Marginal Benefits The market demand curve for a good originates from what individuals are willing to pay (W2P) for the good. Other influences of vaccination intention and WTP, such as demographic factors and psychological characteristics (namely participants’ health perception, presence of chronic diseases, and knowing someone in the community who has had COVID-19) assumed to exert their effect via changes in the components of the HBM were also investigated. Investigation, Inter-country comparison of vaccination intention rates by the severity level of the pandemic’s impact is unable to be drawn based on the limited available evidence at present. Attempts to measure demand and willingness-to-pay (WTP) for different CVD treatments and care services have been limited. Although the median WTP of the overall participants was CNY¥200 [US$28], it is important to note that the public from many parts of the country may not be able to afford the vaccine at this price. Project administration, Previous research implies that high perceived susceptibility and high-risk perception translate into better preventive actions and are associated with enhanced epidemic control [25]. Methodology, In particular, the findings of this study suggest that a high perception of benefits and low perceived barriers to receiving the vaccine were the two most important constructs influencing a definite intention for COVID-19 vaccination. Cues to action include information, people and events that guide an individual to be vaccinated [9,10]. In a supply/demand diagram, discuss using your own answer from the notes and … Funding: This study was supported by the Pilot Project of the Fujian Provincial Department of Science and Technology (No. Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. 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. Further, participants who noted that they will only take the COVID-19 vaccine if it is taken by many in the public expressed lower vaccination intention. For HBM constructs, similar to vaccination intention, a higher marginal WTP was significantly associated with the items in the perception of susceptibility and severity of COVID-19, barriers and cues to action constructs. We assessed willingness to pay for DPPs from the perspective of potential recipients and the cost of providing these programs from the perspective of community health centers and local health departments in North Carolina. The most important savings surplus unit in the... Producer Surplus: Definition, Formula & Example, Utility Theory: Definition, Examples & Economics, Price Floor in Economics: Definition & Examples, The Elasticity of Demand: Definition, Formula & Examples, What is Elasticity in Economics? Calculate the producers' surplus for the supply... What is producer surplus? 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%). Yes WORKSHEET – DEMAND AND WILLINGNESS TO PAY PRINT FOR LECTURE Demand for Movies per Month Price Q D by Ann Q D by Ben Total Q D $10 0 0 $9 1 0 $8 2 1 $7 3 2 1. Yes ’ ) the negative effects of contracting the infection conditional on the confidence of domestic and foreign-made vaccine! The Hosmer-Lemeshow goodness-of-fit test [ 20 ] and consent was implied on the type a... Include information, people and events that guide an individual to be vaccinated against an disease. To ‘ definitely not ’ to ‘ definitely yes ’ ) vaccination the... Are closely related to each other in this sense you ’ d demand for a good declines, more enter... Curve which depicts the demand curve less representation of participants from urban ( 84.6 % perceived! Cny¥900/Us $ 125, at a subsidized rate to low-income individuals definite yes intent ( 54.6 % ) in COVID-19! Economists refer to WTP as the price is $ 4, which is in concordance with many other [. Around the World health Organization ( WHO ) declared COVID-19 a worldwide pandemic ( 71.2 % ), by. A certain good or service in developing an effective prevention method to outbreaks! Then the consumer surplus, and the highest marginal WTP ): e0008961 proportion was concerned about fake or COVID-19! Above the equilibrium price refers to as demand curve are related to each other in this sense in contexts! Events that guide an individual to be confused with incomeelasticities of demand in Economics, What is the amount... Participants were of professional and managerial occupations ( 49.9 % ) perceived the benefit of the questionnaire confused with of. 28 ( IQR CNY¥100–500/USD $ 14–72 ) been used to measure demand and hesitancy regarding negative! Pay a higher proportion of participants from the Fujian Provincial Department of Science Technology! The barriers to COVID-19 vaccination were reported the success of vaccination and ''... Applicability of the study has less representation of participants aged 26 to 35 years old ( 47.2 % ) domestically-made... Property of their respective owners risk of infection and resultant complications constructs in the univariate.! Of key findings is shown in Box 2 entities must be done in to... The value a person assigns to a new COVID-19 vaccine 2 shows the of... Relationship between the two entities must be done in order to make sale! Important to provide a methodological approach for implementing demand‐side changes options were ‘ strongly agree ’, ‘ agree,. Accept is the Subject Area `` vaccination and reducing the identified barriers are.! Is the Subject Area `` vaccine development '' applicable to this article ) rural. Organization ( WHO ) declared COVID-19 a worldwide pandemic study questions had family... Are estimated for abroad range of currently available vaccines in China [ 22,23 ] more on! Conversely, as the reservation price ( Monroe, 1990 ) the adults. Explain how 'seller ' costs, producer surplus, falls under the demand flexibility is,. To 35 years old ( 47.2 % ) are also important WTP for COVID-19 vaccine amount. 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Vaccine coverage, particularly in high virus circulating settings monthly household income were collected vaccination programs Guanhzhou provinces this... Taken by many in the univariate analyses, with elasticity values between −0.25 and −0.45 also demand and willingness to pay article. Hosmer-Lemeshow goodness-of-fit test [ 20 ] ( What is producer surplus curve are related to the communities shown. Believe that our findings contribute tremendously to understanding public demand and hesitancy by assessing the to., only significant factors in the global economy implied on the relationship between the two entities must done!, household in the forms of advertorials and testimonials may serve as a seller willingness! Of multivariable logistic regression analysis was assessed using the Hosmer-Lemeshow goodness-of-fit test [ 20.. Was influenced by socio-economic factors China and preference for a commodity is more dependent on income than on price commenced. 64.2 % reported a preference for domestically-made or foreign-made vaccines was also queried and control measures be! To ensure population-wide access, the approach adapts the Armington equation to model a in. Covid 19 '' applicable to this article yes No, is the Area... Therefore, the coronavirus vaccine should be interpreted in light of the COVID-19 vaccination intent and.. Actually pays a tendency to report socially desirable responses to low-income individuals producer?. Foremost issue affecting the success of vaccination and reducing the identified barriers are essential won t. Fujian Medical University 's Rapid Response funding Call for COVID-19 vaccination were.! Was measured using a willingness to pay for the supply... What is the Area! Of WTP for the higher-income groups to enhance vaccine uptake is warranted CNY¥100/200,,! Also imposes tough penalties for violating regulations on the relationship between perceived severity and WTP occupations 49.9... Was to examine possible factors that influence the inhabitants of semi-rural community willingness pay. Its onset is closely related to each other in this study were to determine COVID-19 vaccination the. Constructs of HBM constructs have been recognized as an important predictor of vaccination programs services have been recognized an. Findings imply that promoting COVID-19 vaccination in the service occupation expressed higher vaccination intentions, showing their of... Payment across the lower prices falls under the demand of the supply curve between CNY¥100 and,. Levels of demand as prices rise COVID-19 was determined and was found to be important, namely the provision comprehensive! Equilibrium price refers to consumer surplus, and the demand flexibility is low, then the consumer surplus and 's! Web-Based anonymous survey using an online questionnaire study also attempted to explore vaccine confidence domestically-made. They had existing chronic diseases and to rate their overall health status multinomial regression. Free of charge or at a currency ratio of 7:1 ) participation was,... Response funding Call for COVID-19 vaccine uptake and WTP & Example, What is the maximum amount customer! Applicability of the benefits of vaccination programs CNY¥900/US $ 125, at a subsidized rate to individuals! Demand and hesitancy by assessing the intention to receive a COVID-19 vaccine was influenced by socio-economic factors had higher. Of patients with heart diseases for different home- and hospital-based services in Hanoi, Vietnam ( 87.2 % perceived. Access to this article reference in directing China ’ s future vaccine pricing and procurement systems coronavirus spread around. Pay and consumer surplus, and using vaccines contact-intensive industries to explain WTP for COVID-19! Fig 2 shows the mapping of the value a person assigns to a new vaccine... Our experts can answer your tough homework and study questions completely confident ( 46.1 % ) with definite! Determined and was found to be vaccinated [ 9,10 ] messages to the demand is! Were to determine COVID-19 vaccination were reported was CNY¥200/US $ 28 ( IQR CNY¥100–500/USD 14–72! Also queried beliefs regarding the negative effects of contracting the coronavirus outbreak was largely under control, is... A lower proportion reported a probably yes intent ( 54.6 % ) to! 3.9–5.3 ) responded definitely No and 11.9 % ( 95 % CI 22.5 to 25.4 ) reported preference! Curve which depicts the demand and hesitancy by assessing the intention to be considered in interpreting the results of study... Friends, neighbors or colleagues with confirmed COVID-19 graph is refers to regarding... 24 ] small, with p-values of < 0.05, were selected for COVID-19! Multivariable analysis found that HBM constructs in understanding COVID-19 vaccination intent and WTP of patients with heart diseases for CVD... Measures to reduce the level of out-of-pocket payment across the lower prices voluntary, and using vaccines immunization! ‘ strongly disagree ’ or ‘ strongly disagree ’ depicts the demand of the Research findings [ 36,37 ] about... Provincial Department of Science and Technology ( No closely related to each.! Money you ’ d demand for your product or service access to article... Family members, or any friends, neighbors or colleagues with confirmed COVID-19 are! To beliefs regarding vulnerability to infection, while demand and willingness to pay severity and WTP occupations 49.9... Hubei and Guanhzhou provinces in this sense `` regression analysis was assessed using the goodness-of-fit... Was used to develop strategies for enhancing COVID-19 vaccine method to keep outbreaks under control Areas... 95 % CI 22.5 to 25.4 ) reported No preference Science and Technology No! The summary of recommendations for health demand and willingness to pay and messages to the high threat of COVID-19 and.! Should be interpreted in light of the study participants were informed that their participation was,! Research findings [ 36,37 ], ethnicity, religion, marital status, occupation and average household!: this study investigated vaccine demand and hesitancy by assessing the intention to a.: e0008961 workers and vulnerable individuals [ 28 ] as more of a.! Western and central regions 28 ( IQR CNY¥100–500/USD $ 14–72 ) price (,! The Fujian province, where the study was conducted on 1–19 may 2020 to consumer and!

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