Summary and Main Findings

Abstract

This dissertation proposed and tested a new method to estimate willingness-to-pay (WTP). For practical applications the estimation of willingness-to-pay belongs to the field of strategic marketing planning. Recent developments in marketing show that pricing of products is driven by a value based approach. In a value based approache the price of a product is based on the perceived valuation of the target customers. The research in the field of pricing is of ample importance. The reason is that price is the only element of the marketing mix that generates income. All other elements, such as advertising and promotion, product development, selling effort, distribution, packaging and so forth, involve expenditures (cf. Nagle and Holden (2002, chapter 1) and Monroe (2003, chapter 1)). In order to set a good price a marketer has to anticipate the market’s price response behavior. That is, the marketer needs valid estimations of the consumers’ willingness-to-pay.

Keywords

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