Abstract

In this dissertation we propose a new method to estimate willingness-to-pay. The method works as an additional interview scene appended to conjoint analysis and we have called it Price Estimation scene (PE scene). In the preceding conjoint analysis price is not included as an attribute. Instead the exchange-rate between conjoint utilities and willingness-topay is estimated in the PE scene. This is achieved by the usage of product stimuli as well as price scales that are adapted for each respondent in the interview to reflect his or her previously estimated part-worth utilities. In the PE scene the respondents are presented a sequence of product choices with assigned prices and indicate whether they would actually purchase each of the presented product profiles.

The PE scene is a method to estimate willingness-to-pay at the individual level based on each respondent’s provided information only. Shortcomings of existing approaches that use conjoint analysis, such as a missing choice rule as well as problems that arise when price is included as an attribute, are overcome.