Estimation of willingness-to-pay

Más información sobre el libro

Christoph Breidert's work is situated in a challenging area of marketing research that is essential for both theoretical and practical applications. Understanding customers' willingness-to-pay for products and services is vital for modern pricing strategies. With the increasing availability of transaction data, such as scanner and consumer panel data, significant advancements have been made in estimating price response models based on observed purchases. However, historical data often has limited variations in price and product, complicating accurate willingness-to-pay estimations, especially for new product launches or alternative marketing strategies like product bundling. Directly asking customers about their willingness to pay often yields unrealistic estimates. Instead, experimental survey-based methods have emerged as effective for indirectly measuring willingness-to-pay. Conjoint analysis, a key technique in this framework, infers respondents' preference structures by analyzing their reactions to systematically varied product attributes, including price. Breidert's work offers a comprehensive overview of the various methods currently utilized in both practical and theoretical pricing research.