Date Posted: 05/20/2021
How to Estimate Willingness to Pay (WTP) in Sawtooth Software's Market Simulator
Willingness to Pay (WTP) estimation for enhanced features is a common request from a conjoint analysis study. We demonstrate how to use Sawtooth Software's conjoint market simulator to conduct WTP analysis. A key to getting WTP right is to consider relevant competition (a simulation scenario with a rich set of competitors) and the potential of the "None alternative". Sawtooth Software's WTP analysis also allows you to generalize the simulation to all potential reactions/positioning of competitors via its Sampling Of Scenarios (SOS) approach. You can also set certain restrictions to account for your firm holding a patent on an enhanced feature.