Measuring value levers: Experimental and contingent approaches

This paper compares two alternative methodologies—the experimental–behavioral approach and the contingent approach—for measuring the value that an attribute of a good (product or service) creates for potential customers. In the experimental–behavioral methodology, potential buyers make actual purchase decisions by receiving financial incentives. In the contingent approach, commonplace in marketing research and purchase decisions are hypothetical. A case–control experiment shows that both methodologies discriminate between key and less relevant attributes in purchase decisions, and provide reliable qualitative information on the value of an attribute. Contingent methodologies fail, however, to provide a reliable quantitative measure of such value.