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E-Convenience: A Willingness To Pay


Posted by admin, Dec 20, 2005 11:30 AM

Here’s further evidence that consumers are willing to pay for convenience for what they once received at a discount because of the computerization of commerce.

On Jan. 1, drivers who use the EZPass electronic toll collection system will no longer get discounts of up to 20% during rush hours and weekends on the 118-mile-long New Jersey Turnpike.

Like other forms of E-Commerce, providers offered discounts to attract customers to their new services, whether on a real or virtual highway. Now, consumers will pay for the convenience. In fact, New Jersey Turnpike drivers using EZPass will shell out more than motorists paying tolls in cash. That’s because EZPass assesses users a $1 monthly fee.

“They don't need a discount anymore,” Pam Fischer, spokeswoman for the New Jersey Automobile Club, told the Star-Ledger of Newark. “I think you’d find that a lot of people are willing to pay more for EZPass because it makes commuting so much easier.”

That willingness to pay more for convenience bodes well for businesses expanding their services using the latest technologies.

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