Comparing willingness to pay estimation models for conjoint analysis: A case study of willingness to pay for biodegradable containers for plants

C. Yue, C. R. Hall, B. K. Behe, B. L. Campbell, R. G. Lopez, J. H. Dennis

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This study utilized and compared different econometric models to analyze conjoint analysis data to elicit floral customers' willingness to pay (WTP) for biodegradable plant containers. From the conjoint data, this paper shows that mixed tobit models or mixed ordered probit models generate more accurate results than the tobit, ordered probit models, or linear models used in the literature. Accordingly, we conclude that mixed tobit or mixed ordered probit models should be used in conjoint analysis instead of tobit, ordered probit or linear models when there is a significant correlation between multiple evaluations from the same participants. The results of the study show that participants were willing to pay a price premium for biodegradable containers, but the premium was not the same for different types of containers.

Original languageEnglish (US)
Title of host publicationXXVIII International Horticultural Congress on Science and Horticulture for People (IHC2010)
Subtitle of host publicationInternational Symposium on Integrating Consumers and Economic Systems
PublisherInternational Society for Horticultural Science
Pages217-224
Number of pages8
ISBN (Print)9789066050686
DOIs
StatePublished - Mar 31 2012

Publication series

NameActa Horticulturae
Volume930
ISSN (Print)0567-7572

Bibliographical note

Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.

Keywords

  • Marketing
  • Probit model
  • Tobit model

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