Predicting New Service Adoption with Conjoint Analysis: External Validity of BDM-based Incentive-aligned and Dual-response Choice Designs

Nils Wlömert*, Felix Eggers

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

Abstract

In this paper, we compare the standard, single-response choice-based con- joint (CBC) approach with three extended CBC procedures in terms of their external predictive validity and their ability to realistically capture consumers’ willingness to pay: (1) an incentive-aligned CBC mechanism (IA-CBC), (2) a dual-response CBC procedure (DR-CBC), and (3) an incentive-aligned dual- response CBC approach (IA-DR-CBC). Our empirical study features a unique sample of 2,679 music consumers who participated in a conjoint choice exper- iment prior to the market entry of a new music streaming service. To judge the predictive accuracy, we contacted the same respondents again 5 months after the launch and compared the predictions with the actual adoption decisions. The results demonstrate that IA-CBC and DR-CBC both increase the predictive accuracy. This result is promising because IA-CBC is not applicable to every research context so that DR-CBC provides a viable alternative. While we do not find an additional external validity improvement through the combination of both extensions, the IA-DR-CBC approach yields the most realistic willingness- to-pay estimates and should therefore be preferred when incentive alignment is feasible.Keywords
Original languageEnglish
JournalMarketing Letters
Volume27
Issue number1
Pages (from-to)195-210
Number of pages16
ISSN0923-0645
DOIs
Publication statusPublished - Mar 2016
Externally publishedYes

Keywords

  • Conjoint analysis
  • Dual response
  • No-choice option
  • Incentive alignment
  • Choice models
  • External validity

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