How can you link the difference in utility for one attribute and utility for price, to estimate willingness to pay?

Question

Hi there,

we are doing some research on the willingness to pay for fresh produce. We are looking for the connection of certain value drivers, in our case with price levels.

Summed price is not an options since we can't link specific prices to the levels. So we would like to include price as a attribute with linear levels (f.i. $1, $2, $3)

The question we have now is, once we have performed the conjoint. How can we link the difference with one attribute (say packaging) with these price levels. In essence, how can we estimat the willingness to pay of different levels of each attribute?

all the best,

Answer 1

T.R.,

Please check out this article on estimating willingness-to-pay:  http://www.sawtoothsoftware.com/support/technical-papers/general-conjoint-analysis/assessing-the-monetary-value-of-attribute-levels-with-conjoint-analysis-warnings-and-suggestions-2001.

An updated discussion can also be found in our 2013 conference proceedings in an article by Greg Allenby and coauthors.

Comments

Hi, the Link is not available. I would like to know how to estimate WTP too. Thanks.

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Try the link without the period at the end:  http://www.sawtoothsoftware.com/support/technical-papers/general-conjoint-analysis/assessing-the-monetary-value-of-attribute-levels-with-conjoint-analysis-warnings-and-suggestions-2001