Cookies?
Library Header Image
LSE Research Online LSE Library Services

Influencing feature price tradeoff decisions in CBC experiments

Tang, Jane, Grenville, Andrew, Morwitz, Vicki G., Chakravarti, Amitav and Ülkümen, Gülden (2009) Influencing feature price tradeoff decisions in CBC experiments. Proceedings of the Sawtooth Software Conference 2009 . pp. 247-284.

Full text not available from this repository.

Abstract

In a typical CBC exercise, respondents are shown combinations of product features at different prices and are asked for their choices. Often, the prices respondents imply that they are willing to pay to obtain these features are unrealistically high. The purpose of this research is to test, in a field experiment, whether questions and tasks performed before a CBC exercise affect respondents‘ price sensitivity. Morwitz et al. (2008, and Ülkümen et al. 2009) demonstrated that the use of survey questions early in the survey, using narrow (i.e., many scale points for responding) vs. broad (i.e., few scale points for responding) response scales had an influence on how respondents reacted to subsequent questions. In particular, they showed that when respondents were asked questions about products, they used more dimensions when they were later asked to evaluate the product if they previously answered a long series of unrelated questions using narrow instead of broad scales. We attempted to replicate their effect and test if it would occur in a different setting. We also tested whether this effect would still occur if a shorter list of questions was used for the manipulation. We incorporated a short series of questions that used narrow or broad response scales prior to the CBC exercise. We then examined the impact of this manipulation on respondents‘ tradeoff decisions in the CBC task. Our results showed that the shortened manipulation did impact respondent price elasticity, but that the direction of the effect was different from what we had first predicted. We also studied the impact of several other manipulations on respondents‘ tradeoff decisions. These included a Build-Your-Own (BYO) exercise, alone and in combination with a budgeting session, a Van Westendorp pricing exercise, and a simulation of point of sale price comparisons. The BYO exercise was effective in increasing respondent price elasticity. In addition, we compared the traditional CBC experiment to an Adaptive CBC (ACBC) experiment. Our results showed that ACBC was surprisingly effective in reducing the price premiums respondents placed on product features.

Item Type: Article
Official URL: http://www.sawtoothsoftware.com/education/conf09.s...
Additional Information: © 2009 Sawtooth Software, Inc.
Library of Congress subject classification: B Philosophy. Psychology. Religion > BF Psychology
H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
Sets: Departments > Management
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 02 Dec 2011 09:31
URL: http://eprints.lse.ac.uk/39861/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only