Current Business Reseach

Business Research and Purpose

The peer reviewed article, “How Should Consumers' Willingness to Pay Be Measured? An Empirical Comparison of State-of-the-Art Approaches”, the research being conducted can all be said in the title. The purpose of the marketing research is determining how much consumers are willing to pay for certain products and how to measure that willingness. Understanding how to measure their willingness to pay for products will helps others determine how to better market their products to consumers.

Business Problems

The business problem is understanding how to measure consumers’ willingness to pay. In business understanding the strategies that need to be used in order to entice consumers to purchase a certain product over any other, this is a strategic plan that needs to be used in order to have a successful marketing strategic, product and business.

Data Collection Methods

The data collection methods used in the research project: “real purchase data (REAL): the open-ended (OE) question format; choice based conjoint (CBC) analysis; Becker, DeGroot, and Marschak’s (BDM) incentive-compatible mechanism; and incentive-aligned choice-based conjoint (ICBC) analysis. With this five-in-one approach, the authors test the relative strengths of the four measurement methods, using REAL as the benchmark, on the basis of statistical criteria and decision-relevant metrics.”(Journal of Marketing Research, pg. 172)

Conclusion

As a result of the research studied performed researches concluded that, “consumers are more likely to be price sensitive in incentive-aligned setting than in non-incentive-aligned settings and the REAL setting.” (Journal of Marketing Research, pg. 172) Researchers also concluded the real methods are not that much different that the hypothetical approaches used to determine consumers’ willingness to pay. This means using hypothetical approaches can still be useful and enable businesses to project demand curves that are close to...