How can managers use WTP analysis when making strategic decisions about pricing?
How can managers use WTP analysis when making strategic decisions about pricing?
Knowledge of consumers' willingness to pay (WTP) is central to any pricing decision. This case teaches students various methods for measuring WTP, including methods based on actual purchasing data, self-stated WTP, contingent valuation, choice-based conjoint analysis, and experimental auctions. Students also learn how to use WTP data when making key decisions about segmented pricing, nonlinear pricing, bundling, and product-line pricing.
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