On the Use of Valuation Mechanisms to Measure Consumers' Willingness to Pay for Novel Products: A Comparison of Hypothetical and Non-Hypothetical Values

Willingness to pay (WTP) estimates for novel products are needed to assess consumers' valuation of these products as well as for product adoption and optimal pricing strategies. Using experiments in a retail setting, we compare hypothetical and non-hypothetical WTP values between a Becker-DeGroot-Marshak (BDM) auction mechanism and conjoint analysis. Our results suggest that the auction WTP values are higher than conjoint analysis WTP values. Moreover, the hypothetical WTP values are higher than the non-hypothetical WTP values in both elicitation mechanisms.


Issue Date:
2007
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/8186
Published in:
International Food and Agribusiness Management Review, Volume 10, Issue 2
Page range:
165-180
Total Pages:
16




 Record created 2017-04-01, last modified 2017-04-04

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