Abstract
This paper empirically compares the traditional preference measures of ranking and rating in conjoint analysis with a direct monetary measure of product value — reservation prices. Experimental results are as expected. While reservation prices do very well in terms of fit, they are inferior in terms of predicting choice on a holdout sample. In addition, surprisingly little difference is found in the performance of ranks and ratings.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Cameron, T. A., and M. D. James. (1987). “Estimating Willingness to Pay from Survey Data: An Alternative Pre-Test-Market Evaluation Procedure,”Journal of Marketing Research 24, 389–395.
Cattin, P., and D. R. Wittink. (1982). “Commercial Use of Conjoint Analysis: A Survey,”Journal of Marketing 46, 44–53.
Dobson, G., and S. Kalish (1988). “Positioning and Pricing a Product Line: Formulation and Heuristics,”Marketing Science 7, 107–125.
Gerstner, E., and J. D. Hess. (1990). “Can Bait and Switch Benefit Consumers,”Marketing Science 9, 114–124.
Green, P. E., and A. M. Krieger. (1985). “Models and Heuristics for Product Line Selection,”Marketing Science 4, 1–19.
Green, P. E., and V. Srinivasan. (1978). “Conjoint Analysis in Consumer Research: Issues and Outlook,”Journal of Consumer Research 5, 103–123.
Gupta, S., and R. Kohli. (1990). “Designing Products and Services for Consumer Welfare: Theoretical and Empirical Issues,”Marketing Science 9, 230–246.
Hauser, J. R., and G. L. Urban. (1986). “The Value Priority Hypothesis for Consumer Budget Plans,”Journal of Consumer Research 12, 446–462.
Kalish, S. (1985). “New Product Adoption Model with Price, Advertising and Uncertainty,”Management Science 31, 1569–1585.
Kalwani, M., and A. J. Silk. (1982). “On the Reliability and Predictive Validity of Purchase Intention Measures,”Marketing Science 1, 243–286.
Moorthy, K. S. (1984). “Market Segmentation, Self Selection and Production Line Design,”Marketing Science 4, 288–307.
Moorthy, K. S., and I. P. L. Png. (1991). “Market Segmentatin, Cannibalization, and the Timing of Product Introductions,” MERC Working Paper 90-11, William E. Simon Graduate School of Business Administration, University of Rochester, Rochester, New York.
Oren, S., S. Smith, and R. Wilson. (1984). “Pricing a Product Line,”Journal of Business 57, S73-S100.
Parker, B. R., and V. Srinivasan. (1976). “A Consumer Preference Approach to the Planning of Rural Health Care Facilities,”Operations Research 24, 991–1025.
Pessemier, E. A. (1975). “Market Structure Analysis of New Product and Market Opportunities,”Journal of Contemporary Business 4, 35–67.
Ratchford, B. T. (1979). “Operationalizing Economic Models of Demand for Product Characteristics,”Journal of Consumer Research 6, 76–85.
Rosen, S. (1974). “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition,”Journal of Political Economy 34–55.
Srinivasan, V. (1979). “Network Models for Estimating Brand-Specific Effects in Multi-Attribute Marketing Models,”Management Science 25, 11–21.
Srinivasan, V. (1982). “Comments on the Role of Price in Individual Utility Judgements,” Choice Models for Buyer Behavior,Research in Marketing Supplement 1,JAI Press, Inc., 81–90.
Varian, H. (1980). “A Model of Sales,”American Economic Review 70, 651–659.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Kalish, S., Nelson, P. A comparison of ranking, rating and reservation price measurement in conjoint analysis. Market Lett 2, 327–335 (1991). https://doi.org/10.1007/BF00664219
Issue Date:
DOI: https://doi.org/10.1007/BF00664219