Reservation Prices for Product Portfolios Under Uncertainty: the ICEPORT Approach

Casey E. Newmeyer (), R. Venkatesh () and Rabikar Chatterjee ()
Additional contact information
Casey E. Newmeyer: Case Western Reserve University
R. Venkatesh: University of Pittsburgh
Rabikar Chatterjee: University of Pittsburgh

Customer Needs and Solutions, 2021, vol. 8, issue 3, No 1, 65 pages

Abstract: Abstract This study rests on three premises. Consumers often make choice decisions considering multiple products from one or more categories. Consumers’ levels of uncertainty with product performance or their own preference are nuanced in such portfolio-level situations. Under such uncertainty, extant approaches for reservation price elicitation do not suffice for product portfolios. Building on these premises, the authors propose ICEPORT, an approach for Incentive Compatible Elicitation of reservation prices for product PORTfolios. ICEPORT is able to capture the range in a consumer’s reservation prices for each individual product and combinations of products on offer. An empirical application in the context of root beer and cheese puffs, and a replication involving MLB merchandise, demonstrate the superior predictive performance of ICEPORT over several alternatives. The authors note, among managerial implications of ICEPORT, its potential for improving pricing decisions. Limitations of this study and future research directions are discussed.

Keywords: Reservation price; Incentive compatible elicitation; Measurement; Pricing; Uncertain valuation (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40547-021-00115-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:custns:v:8:y:2021:i:3:d:10.1007_s40547-021-00115-y

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40547

DOI: 10.1007/s40547-021-00115-y

Access Statistics for this article

Customer Needs and Solutions is currently edited by Min Ding

More articles in Customer Needs and Solutions from Springer, Institute for Sustainable Innovation and Growth (iSIG)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().