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A PC based survey tool has been used to measure the value of a luxury vehicle as a function of its interior noise level at 70 mph. Two straight lines were required to fit the change in value (measured in dollars) with noise level depending upon whether noise was greater or less than a baseline level of 66 dB(A). The slopes of the lines differed by a factor of two with the value loss curve asociated with a noise increase from the baseline level being the steeper of the two. A difference in the value relationships between gains and losses in this manner is expected from prospect theory. When the noise level in dB(A) was adjusted to represent a sones-like scale using a conversion based upon a broadband noise spectrum, the measurements followed a single straight line reinforcing the view that the sones scale is more nearly a “pure” psychometric scale than dB(A).

Engineers, marketing specialists, and planners responsible for making the numerous cost/benefit trade-offs that arise in the development of a new product need to understand how the attributes of the product generate value to the customer. A recently proposed methodology for benchmarking product value is tested here using five family automobiles competing in the middle product segment. Reasonable agreement is found between value differences estimated from an analysis of demands and prices and those estimated from attribute differences. This finding supports the use of the methodology in forecasting the demands and profits of future products based upon the improvements expected in their attributes.

Product engineers and product planners are routinely faced with trade-off decisions involving the cost of adding a product feature or modifying an existing feature versus its added value to the customer. The purpose of this paper is to assess the use of a personal computer (PC) for surveying respondents' willingness to pay (WTP) for four options - two-tone color, 4x4 drive, sporty trim package, and extended cab -- available on the base 1997 Ford F-150 truck. The results show that the respondents' stated WTP reflected the value of the options as determined from their prices and fraction of sales.

In developing new products and improving existing products, engineers make numerous trade-offs between the cost of a new or modified feature and its value to the customer. One method for estimating value is to ask potential customers their willingness to pay (WTP) for the product change. Their stated WTP may, however, depend upon how the question is framed. Mail survey techniques based upon simulated choice experiments were used for estimating value to the customer. The main objective was to explore how the framing of the survey questions affected the WTP response and if one or more of the methods provided simulated responses in reasonable agreement with actual buyer behavior. It was found that the best way to frame the questions was to give respondents multiple choices for price of the alternative versus the baseline product as opposed to having a choice of only one price or having to write in a price representing their WTP.