Take Action

Home | Faculty & Research Overview | Research

Research Details

Willingness to Pay: A Comparative Method of Valuation, Journal of Marketing


Willingness to pay (WTP) is a measure that is widely valued and utilized among both practitioners and academics. This paper presents a formal mathematical framework that conceptualizes WTP as a distributional concept—rather than a single number—that is constructed as a function of properties of customers, comparisons, and situations. This framework further reveals the operation of two comparative mechanisms, direct and indirect, by which situational factors affect WTP. This paper introduces a new measurement tool, Comparative Method of Valuation (CMV), that, unlike prior efforts to measure WTP, is designed to account for the inherently comparative and situational nature of WTP. Across nine studies reported in the paper and four additional studies in the Web Appendix, the authors examine differences in results between CMV and conjoint as well as between CMV and the classic Becker-DeGroot-Marschak (BDM) methodology, demonstrate the CMV as a valid and reliable measure of WTP, and illustrate applications of the CMV to managerial problems. In total, this paper offers both conceptual clarity and methodological advances to understanding the construction and measurement of WTP for practitioners and academics alike.




Eric T. Anderson, Derek Rucker, Sharlene He

Date Published



Anderson, Eric T., Derek Rucker, and Sharlene He. 2023. Willingness to Pay: A Comparative Method of Valuation. Journal of Marketing.


Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more


Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.


Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more