Comparing methods for measuring consumer willingness to pay for a basic and an improved ready made soup product

Willingness to pay (WTP) for a basic chilled soup product and for an improved, self-heating version was measured by methods experimentally varied according to a 2 x 3 design, varying the basic measurement approach (contingent valuation, experimental auction, conjoint analysis) and the use of real vs. game money. Measurement protocols for each approach were adapted in order to allow uniform methods factors across the design. WTP was measured for 551 shoppers recruited in a shopping centre, using personal interviewing and closed questioning. Shoppers in the real money condition received an endowment at the beginning of the task. Drawing on constructs derived from research in consumer price information processing, subject's reference price, price involvement, and price thought style were also measured. Results showed no differences between use of contingent valuation and experimental auction, and between the use of real vs. game money. Conjoint analysis led to lower WTP estimates for the product improvement than the other two methods Reference price and one dimensions of price involvement value consciousness - were related to WTP estimates for the base product. (c) 2009 Elsevier Ltd. All rights reserved.