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Measuring Willingness-to-Pay

Abstract

In many companies pricing decisions are made without profound understanding of the likely response of the buyers and competitors. These companies do not conduct pricing research and as a result do not have a serious pricing strategy in a marketing sense. They rather have something that could be called an intuitive pricing strategy. Several studies indicate that only 8% to 15% of the companies conduct serious pricing research to develop effective pricing strategies (Monroe and Cox, 2001). Other studies have shown that 49.9% of the surveyed companies adjust prices once or less in a typical year. Further, only 13% of the prices that were changed were a result of a scheduled review of the current pricing policy (Monroe, 2003, p. 19).

Keywords

Conjoint Analysis Market Data Product Profile Multivariate Normal Distribution Product Configuration 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Deutscher Universitäts-Verlag | GWV Fachverlage GmbH, Wiesbaden 2006

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