Elicitation and estimation of reservation price for multi-attribute products based on two-stage choice protocols

Sigal Kaplan, Shlomo Bekhor, Yoram Shiftan

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

The present study proposes a novel method for direct elicitation of consumers’ price acceptability range by computer aided recording of two-stage choice protocols. The two-stage process consists of a conjunctive stage, in which the price acceptability range is elicited, and a utility-based stage, in which the preferred product variation is chosen. The method is efficient for retrieving the price acceptability range for multi-attribute products in choice situations involving many product variations, under partial information conditions. Given that the current design of on-line shopping websites evokes a two-stage choice process, the method is suitable for retrieving price acceptability from market data in a digital economy environment. The method is applied to elicit ceiling reservation price (CRP) of apartment rental choice by students. The results include: i) CRP distribution for different product variations, ii) model estimation unraveling CRP determinants, iii) linkage between CRP and the price of the chosen product variation.
Keyword: price acceptability range, ceiling reservation price, direct elicitation methods
Original languageEnglish
Title of host publicationElicitation and estimation of reservation price for multi-attribute products based on two-stage choice protocols
Publication date2009
Publication statusPublished - 2009
Externally publishedYes
EventThe 2009 La Londe Conference in Marketing Communications and Consumer Behavior - La Londe Les Maures, France
Duration: 1 Jan 2009 → …

Conference

ConferenceThe 2009 La Londe Conference in Marketing Communications and Consumer Behavior
CityLa Londe Les Maures, France
Period01/01/2009 → …

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