How Consumers’ Willingness to Pay is Measured in Practice: An Empirical Analysis of Common Approaches' Relevance

7 Pages Posted: 21 Mar 2012

See all articles by Michael Steiner

Michael Steiner

University Witten/Herdecke

Julia Hendus

affiliation not provided to SSRN

Date Written: March 18, 2012

Abstract

We conduct an empirical study to assess the relevance of common methods used to survey consumers’ willingness to pay (WTP) from practitioners’ perspective. The survey results show that direct approaches are predominantly used in practice; this is probably due to their less costly application. Researchers should therefore pay more attention to proceeding development of direct methods and/or indirect approaches that require less interview time in order to save costs. Furthermore, market research firms’ customers seem to strongly influence the selection of a method. Research results on the relative performance of methods should therefore not only be communicated to market researchers but also to their customers.

Keywords: willingness to pay, pricing, market research

Suggested Citation

Steiner, Michael and Hendus, Julia, How Consumers’ Willingness to Pay is Measured in Practice: An Empirical Analysis of Common Approaches' Relevance (March 18, 2012). Available at SSRN: https://ssrn.com/abstract=2025618 or http://dx.doi.org/10.2139/ssrn.2025618

Michael Steiner (Contact Author)

University Witten/Herdecke ( email )

Alfred-Herrhausen-Straße 50
Witten, D-58448
Germany

HOME PAGE: http://https://www.uni-wh.de/wirtschaft/lehrstuhl-marketing/

Julia Hendus

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
687
Abstract Views
2,776
rank
45,972
PlumX Metrics