Measuring Customers' Willingness to Pay Accurately: Generalizations from a Meta-Analysis
Basic data for this talk
Type of talk: scientific Talk
Name der Vortragenden: Schmidt, Jonas
Date of talk: 05/06/2018
Talk language: English
Information about the event
Name of the event: BI-JAMS Thought Leaders' Conference 2018
Event period: 03/06/2018 - 05/06/2018
Event location: BI Norwegian Business School, Oslo, Norway
Abstract
Measuring customers' willingness to pay (WTP) accurately is crucial for companies to implement an optimal pricing strategy. However, companies often times struggle when measuring WTP. Especially, the decision whether to use direct (e.g. open-ended question format) or indirect approaches (e.g. conjoint analysis) remains uncertain, since contradictory evidence regarding their accuracy and recommendations for use exist. Academics mostly attribute indirect approaches a higher accuracy, as these methods are similar to real buying decisions. Practitioners however use direct approaches more often due to their practicability. Therefore, we synthesize research that validates hypothetical direct or indirect WTP measurements externally by collecting customers' real WTP. As the dependent variable, we choose the standardized hypothetical bias (HB), defined as hypothetical WTP minus real WTP. Additionally, we consider factors related to research design and research subject as moderators. Preliminary results show that direct approaches measure WTP more accurately than indirect approaches. Final results on the moderator analysis will be presented.Speakers from the University of Münster
| Schmidt, Jonas |
Publications referred to in the talk
Accurately measuring willingness to pay for consumer goods: A meta-analysis of the hypothetical bias Schmidt Jonas, Bijmolt Tammo H. A. (2020) In: Journal of the Academy of Marketing Science, 48(3), 499-518. doi:10.1007/s11747-019-00666-6 Research article (journal) | Peer reviewed | Published |