There are several methods to measure WTP, each with its own advantages and limitations:
Surveys and Questionnaires: Directly asking potential customers about their WTP can provide valuable insights. However, responses may be biased or inaccurate due to hypothetical scenarios. Market Experiments: Conducting market research experiments, such as A/B testing with different price points, can offer real-world data on WTP. Historical Data Analysis: Analyzing past sales data and customer behavior can help estimate WTP. Conjoint Analysis: This statistical technique involves presenting customers with different product attributes and price combinations to determine their preferences and WTP.