Exact measurement of consumers’ willingness to pay is essential for pricing product innovations. In this case, market researches often rely on hypothetical approaches to gauge consumer demand. These methods are known to be considerably biased. Up to date, there is no convincing approach to eliminate these biases. In this paper, we will address this research deficit and present a simple way to eliminate biases in hypothetical pricing surveys. Our findings guide market researches to identify a specific group of respondents with unique characteristics that enable them to reveal their true price preferences for product innovations. By doing so, we aid market researchers to gain valid forecasts of consumer demand for product innovations.
Who Should We Ask When Measuring Consumers’ Willingness to Pay for Product Innovations