On the use of valuation mechanisms to measure consumers' willingness to pay for novel products: A comparison of hypothetical and non-hypothetical values

Andres Silva, Rodolfo M. Nayga, Ben L. Campbell, John Park

    Research output: Contribution to journalArticlepeer-review

    23 Citations (Scopus)

    Abstract

    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.

    Original languageEnglish
    Pages (from-to)165-178
    Number of pages14
    JournalInternational Food and Agribusiness Management Review
    Volume10
    Issue number2
    Publication statusPublished - 2007

    Keywords

    • Auction
    • Conjoint analysis
    • Hypothetical
    • Non-hypothetical
    • Willingness-to-pay

    ASJC Scopus subject areas

    • Food Science
    • Business and International Management

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