The Difficulties in Measuring Individual Utilities of Product Attributes: A Choice Based Experiment

The study combines different theoretical approaches in the field of conjoint analysis to estimate the im-portance of product related attributes. This is of major importance in food marketing, where we still try to find a valid answer, in particular, how to measure the real willingness to pay (WTP) for specific product specifica-tions. Based on a comprehensive literature analysis, a common method was used to approximate the im-portance of several product attributes. As usually suggested in literature, we used discrete choice modeling and developed a choice based experimental design considering selected product attributes. The study object was frozen pizza, a convenience good frequently bought by most households. Up to this point, there is nothing special about the choice based experiment in comparison to direct measure-ment of the importance of product attributes. However, one of the core problems of discrete choice modeling – the approximation of individual utility functions – was then addressed by transforming the choices of con-sumers into scores. With these scores traditional conjoint measurement can be used to approximate individual utilities even in choice based experiments. The individual part-worth utilities will be compared with a usual but very complex approach to approximate individual part-worth utilities, the hierarchical Bayes method. Our ap-proach addresses methodological considerations concerning the restrictions of discrete choice modeling, namely the complexity of approximating individual utilities which is of huge importance in particular for market segmentation.


Editor(s):
Schiefer, Gerhard
Rickert, Ursula
Deiters, Jivka
Issue Date:
Jun 29 2017
Publication Type:
Journal Article
ISSN:
2194-511X
Language:
English
Published in:
International European Forum, February 13-17, 2017, Innsbruck-Igls, Austria, 2017, Number 1
Page range:
13-23




 Record created 2017-06-29, last modified 2017-08-29

Fulltext:
03-Meixner_Haas2017final_2 - Download fulltextPDF
03-Meixner_Haas2017final - Download fulltextPDF
Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)