On the Use of Valuation Mechanisms to Measure Consumers' Willingness to Pay for Novel Products: A Comparison of Hypothetical and Non-Hypothetical Values
AbstractWillingness 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.
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Bibliographic InfoArticle provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.
Volume (Year): 10 (2007)
Issue (Month): 02 ()
Conjoint analysis; willingness-to-pay; auction; hypothetical; non-hypothetical; Consumer/Household Economics; Institutional and Behavioral Economics;
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