Using discrete choice experiments to estimate willingness-to-pay intervals

摘要: Willingness-to-pay has always been conceptualized as a point estimate, frequently the price that makes consumer indifferent between buying and not product. In contrast, this article estimates willingness-to-pay (WTP) an interval based on discrete choice experiments scale-adjusted latent-class model. The middle value of corresponds to traditional WTP estimate depends deterministic utility; range sensitivity utility’s error variance (scale). With conceptualization WTP, we propose new measure, attractiveness index, which serves identify attractive consumers by combining knowledge about their sensitivities variances. An empirical study demonstrates index identifies most consumers, who do necessarily have largest estimates. Furthermore, with comparable preferences can differ in purchase probability average 16%, reflected differences intervals, yields implications for more customized target marketing.