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 journalArticle

18 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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