TY  - JOUR
A1  - Hofstetter, Reto
A1  - Miller, Klaus Matthias
A1  - Krohmer, Harley
A1  - Zhang, Z. John
T1  - A de-biased direct question approach to measuring consumers' willingness to pay
T2  - International journal of research in marketing
N2  - Knowledge of consumers' willingness to pay (WTP) is a prerequisite to profitable price-setting. To gauge consumers' WTP, practitioners often rely on a direct single question approach in which consumers are asked to explicitly state their WTP for a product. Despite its popularity among practitioners, this approach has been found to suffer from hypothetical bias. In this paper, we propose a rigorous method that improves the accuracy of the direct single question approach. Specifically, we systematically assess the hypothetical biases associated with the direct single question approach and explore ways to de-bias it. Our results show that by using the de-biasing procedures we propose, we can generate a de-biased direct single question approach that is accurate enough to be useful for managerial decision-making. We validate this approach with two studies in this paper.
KW  - Market research
KW  - Pricing
KW  - Demand estimation
KW  - Direct estimation
KW  - Single question approach
KW  - Choice experiments
KW  - Willingness to pay
KW  - Hypothetical bias
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/78046
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-780461
SN  - 0167-8116
VL  - 38.2021
IS  - 1
SP  - 70
EP  - 84
PB  - Elsevier
CY  - Amsterdam
ER  -