Bayesian Conjoint Analysis in Water Park Pricing: A New Approach Taking Varying Part Worths for Attribute Levels into Account

Abstract

Nowadays, the application of conjoint analysis for measuring customers’ preferences for goods and services is wide-spread in marketing. A sample of customers is confronted with fictive offers and asked for evaluations. From these responses part worths for attribute levels of the offers are estimated and used to develop an optimal design and pricing for an offer. However, especially in tourism, it can be observed that attribute importance not only differs between customers but also varies over a single customer’s usage situations and her/his mood. In this paper, we propose a measurement approach that respects this variation. Part worths are stochastically modeled and estimated using Bayesian procedures. The approach is applied to design and price a water park.