Pricing plans for a financial advisory service

2014 ◽  
Vol 48 (3/4) ◽  
pp. 595-616 ◽  
Author(s):  
Christian Schlereth
Keyword(s):  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Service Industries ◽  
Discrete Choice Experiments ◽  
Online Retail ◽  
Content Type ◽  
Advisory Service ◽  
Computing Services ◽  
Cloud Computing Services

Purpose – In cooperation with a German online retail bank, the aim of this paper is to investigate how the bank should price a new fee-only financial advisory service. Two types of pricing plans differ in terms of their strategies for determining monthly prices: a fixed monthly price that is identical for all clients (i.e. a flat pricing plan) or a monthly price that varies as a function of each client's assets under management (i.e. a volume pricing plan). Design/methodology/approach – With a discrete choice experiment, this article studies client preferences for the two types of plans. To ensure that the respondents understood the financial consequences of their decisions, a price calculator was embedded into the discrete choice experiment to enable the respondents to determine their individual monthly prices based on their assets under management. Findings – Methodologically, the price calculator is useful for simplifying mathematically complex decisions, and it provides additional valuable information for analysis. Substantively, the results show that clients perceive both types of pricing plans as equally attractive; however, the service provider's revenues would increase by up to 12 per cent if it uses the volume pricing plan. Originality/value – This research extends the stream of literature on the measurement of pricing plan preferences and offers guidance for service industries, such as telecommunications, cloud computing services, insurances, or transportation. It extends the use of discrete choice experiments to study client preferences for different pricing plans and also integrates a decision aid, i.e. a price calculator, in the experiment to assist clients in comparing alternatives more effectively.

Farmer preferences regarding durum wheat contracts in Italy: a discrete choice experiment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gustavo Magalhães de Oliveira ◽  
Gaetano Martino ◽  
Stefano Ciliberti ◽  
Angelo Frascarelli ◽  
Gabriele Chiodini
Keyword(s):  
Durum Wheat ◽  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Food Chains ◽  
Decision Rights ◽  
Content Type ◽  
Sales Contracts ◽  
The Empirical Analysis ◽  
Practical Implications

PurposeThis study aims to investigate farmer preferences regarding sales contracts for durum wheat in Italy.Design/methodology/approachThe authors consider that contracts are formed by an organisational entity that is in charge of transferring decision and property rights based on reductions in transaction costs. The empirical analysis presents a discrete choice experiment with three distinct models that was performed by a survey of 160 wheat farmers in southern Italy.FindingsThe results show that contractual terms affect the probability of both a contract being signed and allocating decision rights due to their effects on price, technology and quality.Practical implicationsThis study provides some insights on which contractual attributes could support the wider use of contracts along the durum wheat supply chain in Italy.Originality/valueThe paper reveals that contracts are relevant not only to the coordination of agri-food chains because of price stabilisation but also due to their impacts on technology and quality strategies.

scholarly journals Improving the demand for birth registration: a discrete choice experiment in Ethiopia

2020 ◽  
Vol 5 (5) ◽  
pp. e002209 ◽  
Author(s):  
Mahari Yihdego ◽  
Ayanaw Amogne ◽  
Selamawit Desta ◽  
Yoonjoung Choi ◽  
Solomon Shiferaw ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Urban Areas ◽  
Choice Experiment ◽  
Addis Ababa ◽  
Discrete Choice Experiments ◽  
Birth Certificates ◽  
Significant Heterogeneity ◽  
Birth Registration

IntroductionBirth registration remains limited in most low and middle-income countries. We investigated which characteristics of birth registration facilities might determine caregivers’ decisions to register children in Ethiopia.MethodsWe conducted a discrete choice experiment in randomly selected households in Addis Ababa and the Southern Nations, Nationalities, and People’s Region. We interviewed caregivers of children 0–5 years old. We asked participants to make eight choices between pairs of hypothetical registration facilities. These facilities were characterised by six attributes selected through a literature review and consultations with local stakeholders. Levels of these attributes were assigned at random using a fractional design. We analysed the choice data using mixed logit models that account for heterogeneity in preferences across respondents. We calculated respondents’ willingness to pay to access registration facilities with specific attributes. We analysed all data separately by place of residence (urban vs rural).ResultsSeven hundred and five respondents made 5614 choices. They exhibited preferences for registration facilities that charged lower fees for birth certificates, that required shorter waiting time to complete procedures and that were located closer to their residence. Respondents preferred registration facilities that were open on weekends, and where they could complete procedures in a single visit. In urban areas, respondents also favoured registration facilities that remained open for extended hours on weekdays, and where the presence of only one of the parents was required for registration. There was significant heterogeneity between respondents in the utility derived from several attributes of registration facilities. Willingness to pay for access to registration facilities with particular attributes was larger in urban than rural areas.ConclusionIn these regions of Ethiopia, changes to the operating schedule of registration facilities and to application procedures might help improve registration rates. Discrete choice experiments can help orient initiatives aimed at improving birth registration.

scholarly journals Prostate cancer survivors’ preferences on the delivery of diet and lifestyle advice: a pilot best-worst discrete choice experiment

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Luke A. Robles ◽  
Stuart J. Wright ◽  
Lucy Hackshaw-McGeagh ◽  
Ellie Shingler ◽  
Constance Shiridzinomwa ◽  
...  
Keyword(s):  
Physical Activity ◽  
Prostate Cancer ◽  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Discrete Choice Experiments ◽  
Face To Face ◽  
Physical Activity Advice ◽  
Diet And Physical Activity ◽  
One To One

Abstract Background Lifestyle factors, including diet and physical activity, are associated with prostate cancer progression and mortality. However, it is unclear how men would like lifestyle information to be delivered following primary treatment. This study aimed to identify men’s preferences for receiving lifestyle information. Methods We conducted a cross-sectional pilot best-worst discrete choice experiment which was nested within a feasibility randomised controlled trial. Our aim was to explore men’s preferences of receiving diet and physical activity advice following surgery for localised prostate cancer. Thirty-eight men with a mean age of 65 years completed best-worst scenarios based on four attributes: (1) how information is provided; (2) where information is provided; (3) who provides information; and (4) the indirect cost of receiving information. Data was analysed using conditional logistic regression. Men’s willingness to pay (WTP) for aspects of the service was calculated using an out-of-pocket cost attribute. Results The combined best-worst analysis suggested that men preferred information through one-to-one discussion β = 1.07, CI = 0.88 to 1.26) and not by email (β = − 1.02, CI = − 1.23 to − 0.80). They preferred information provided by specialist nurses followed by dietitians (β = 0.76, CI = 0.63 to 0.90 and − 0.16, CI = − 0.27 to − 0.05 respectively) then general nurses (β = − 0.60, CI = − 0.73 to − 0.48). Three groups were identified based on their preferences. The largest group preferred information through individual face-to-face or group discussions (β = 1.35, CI = 1.05 to 1.63 and 0.70, CI = 0.38 to 1.03 respectively). The second group wanted information via one-to-one discussions or telephone calls (β = 1.89, CI = 1.41 to 2.37 and 1.03, CI = 0.58 to 1.48 respectively), and did not want information at community centres (β = − 0.50, CI = − 0.88 to − 0.13). The final group preferred individual face-to-face discussions (β = 0.45, CI = 0.03 to 0.88) but had a lower WTP value (£17). Conclusions Men mostly valued personalised methods of receiving diet and physical activity information over impersonal methods. The out-of-pocket value of receiving lifestyle information was important to some men. These findings could help inform future interventions using tailored dietary and physical activity advice given to men by clinicians following treatment for prostate cancer, such as mode of delivery, context, and person delivering the intervention. Future studies should consider using discrete choice experiments to examine information delivery to cancer survivor populations.

scholarly journals Employers’ preferences for IT-retrainees: evidence from a discrete choice experiment

2019 ◽  
Vol 40 (7) ◽  
pp. 1273-1287
Author(s):  
Melvin Vooren ◽  
Carla Haelermans ◽  
Wim Groot ◽  
Henriette Maassen van den Brink
Keyword(s):  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Soft Skills ◽  
Business Environment ◽  
Soft Skill ◽  
Content Type ◽  
Monetary Value ◽  
Returns To Skills ◽  
It Training

Purpose The purpose of this paper is to present the results of a discrete choice experiment (DCE) on the competencies of potential information technology (IT)-retrainees. The results give insights in the monetary value and relative returns to both soft and hard skills. Design/methodology/approach The authors apply a DCE in which the authors propose seven pairs of hypothetical candidates to employers based in the municipality of Amsterdam, the Netherlands. These hypothetical candidates differ on six observable skill attributes and have different starting wages. The authors use the inference from the DCE to calculate the marginal rates of substitution (MRS). The MRS gives an indication of the monetary value of each skill attribute. Findings Employers prefer a candidate who possesses a degree in an exact field over a similar candidate from another discipline. Programming experience from previous jobs is the most highly valued characteristic for an IT-retrainee. Employers would pay a candidate with basic programming experience a 53 percent higher starting wage. The most high-valued soft skill is listening skills, for which employers are willing to pay a 46 percent higher wage. The results of this paper show that both hard and soft skills are important, but not all soft skills are equally important. Originality/value The results on the returns to skills provide guidelines to tailor IT training and retraining programs to the needs of the business environment. A key strength of this paper is that the authors have information on the preference orderings for different skills and kinds of experience.

scholarly journals An assessment of students’ job preference using a discrete choice experiment: a postgraduate case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry Gyarteng-Mensah ◽  
De-Graft Owusu-Manu ◽  
David Edwards ◽  
Isaac Baidoo ◽  
Hatem El-Gohary
Keyword(s):  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Negative Impact ◽  
Employment Decisions ◽  
Content Type ◽  
Postgraduate Students ◽  
Trade Offs ◽  
Job Preference

Purpose Using a discrete choice experiment (DCE), this study aims to better understand the job preference of postgraduate students studying at the Kwame Nkrumah University of Science and Technology-Institute of Distance Learning, Ghana and also rank the attributes of a job they deem important. Design/methodology/approach The research adopted a positivist epistemological design contextualised within a deductive approach and case study strategy. Primary survey data was collected from a stratified random sample of 128 postgraduate students with multi-sectorial career prospects. Sample students were subjected to a DCE in which their stated preferences were collected using closed-ended questionnaires with 28 pairs of hypothetical job profiles. Respondents’ preferences from the DCE data were then modelled using the conditional logit. Findings The research reveals that: salary in the range GHC 2,800.00 to GHC 3,400.00 ($1 = GHS 5.3); supportive management; very challenging jobs; and jobs located in the city were the top attributes that were significant and had the most impact in increasing the utility of selecting a particular job. Interestingly, jobs with no extra hours workload were not significant hence, had a negative impact upon student preferences. Originality/value This novel research is the first to use a DCE to better elicit preference and trade-offs of postgraduate students in a developing country towards varying job characteristics that have an impact on their future employment decisions. Knowledge advancements made provide invaluable insight to employers and policymakers on the key criteria that should be implemented to retain the best candidate.

Präferenzen von Patienten, pflegenden Angehörigen, Leistungserbringern, Kostenträgern und politischen Entscheidungsträgern bei der integrierten Versorgung in Deutschland: Ein Discrete Choice Experiment

2021 ◽  
Author(s):  
Verena Struckmann ◽  
Verena Vogt ◽  
Julia Köppen ◽  
Theresa Meier ◽  
Maaike Hoedemakers ◽  
...  
Keyword(s):  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Choice Experiments ◽  
Discrete Choice Experiments ◽  
Pflegende Angehörige ◽  
Triple Aim ◽  
Körperliche Funktionsfähigkeit

Zusammenfassung Ziel Ziel dieser Studie ist Präferenzen zu erheben, die multimorbide Patienten, pflegende Angehörige, Leistungserbringer, Kostenträger oder politische Entscheidungsträger verschiedenen Endpunkten von integrierten Versorgungsprogrammen (IV-Programmen) in Deutschland beimessen und diese zu vergleichen. Methodik Mit Hilfe eines Discrete Choice Experiments (DCE) wurden die Präferenzen der Befragten für die Endpunkte von zwei IV-Programmen ermittelt. Jedes IV-Programm wurde anhand von Attributen, bzw.Endpunkten präsentiert, die das „Triple Aim“ abbilden. Sie waren in die Endpunkte Wohlbefinden, Erfahrung mit Versorgung und Kosten unterteilt, mit insgesamt acht Attributen und jeweils drei Ausprägungen. Ergebnisse Die Ergebnisse von 676 Fragebögen zeigen, dass die Attribute „Lebensfreude“ und „Kontinuität der Versorgung“ interessengruppenübergreifend die höchsten Bewertungen erhalten. Am geringsten blieben die relativen Bewertungen für alle Interessengruppen bei dem Attribut „Kosten“. Die Präferenzen der Leistungserbringer und pflegenden Angehörigen unterschieden sich am deutlichsten von denen der Patienten. Diese Unterschiede betrafen meist die „körperliche Funktionsfähigkeit“, die von Patienten am höchsten bewertet wurde, die „Personenzentrierung“ und „Kontinuität der Versorgung“, die die höchsten Bewertungen von den Leistungserbringern erhielten. Schlussfolgerung Die identifizierten Präferenzheterogenitäten in Bezug auf die Endpunkte von IV-Programmen zwischen den Interessengruppen verdeutlichen, wie wichtig es für eine optimale Ausgestaltung von IV-Programmen ist, Vertreter der Praxis und politische Entscheidungsträger über die unterschiedlichen Perspektiven zu informieren. Die Ergebnisse unterstreichen zudem die Relevanz von gemeinsamen Entscheidungsfindungs- und Abstimmungsprozessen zwischen Leistungserbringern, pflegenden Angehörigen und Patienten.

scholarly journals Penentuan Kriteria Pengunjung dalam Pemilihan Green Hotel di Kota Bandung Menggunakan Metode Discrete Choice Experiment dengan Desain Choice Sets Kombinatorial

2021 ◽  
Vol 1 (1) ◽  
pp. 1-9
Author(s):  
Sheila Ghazia Shofwani ◽  
Abdul Kudus
Keyword(s):  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Green Building ◽  
Preference Assessment ◽  
The United States ◽  
Fractional Factorial ◽  
Discrete Choice Experiments ◽  
Green Hotel ◽  
Choice Sets

Abstract. This research discusses about planning of guest formulation in the selection of environmentally green hotels by using a 2k-p factorial fractional design and combinatorial choice sets on the Discrete Choice Experiment method. Discrete Choice Experiments is a quantitative method for survey-based respondents' preference assessment. This method asks respondents to choose the preferred choice from several alternative choices provided. With this method the authors will apply to the case of green hotel selection, because currently in the United States, investors are beginning to look at green building opportunities as a long-term investment in accordance with the operational costs of green buildings that are more efficient than conventional buildings. The concept of green building is one of the efforts to save energy that can be applied to a building. The material of this study is primary data by distributing questionnaires to respondents using voluntary sampling techniques. In this study, there are 8 independent variables consisting of 5 attribute variables and 3 respondent identity variables. This study aims to determine the criteria for visitors in choosing the most desirable green hotel. The results of this study are the results of green hotel research that is most sought after by visitors, namely hotels with quality luxury rooms, toiletries provided, visitors are required to improve the environment, there is the practice of using plastic on product packaging, and there is the use of lamps as well as energy-saving equipment. After further analysis of the demographics of respondents regarding the preference of the selected green hotel criteria for each respondent, and the results obtained at the time, gender, occupation and experience of staying in a green hotel together are not related to the involvement of the selected green hotel criteria chosen from each respondent. Abstrak. Skripsi ini membahas mengenai penentuan rancangan kriteria pengunjung dalam pemilihan hotel ramah lingkungan (green hotel) dengan menggunakan desain fractional factorial 2k-p dan choice sets kombinatorial pada metode Discrete Choice Experiment. Discrete Choice Experiment merupakan metode kuantitatif untuk menilai suatu preferensi seorang responden yang berbasis survei. Metode ini meminta responden untuk memilih pilihan yang diminati dari beberapa alternatif pilihan yang disediakan. Dengan metode ini penulis akan melakukan penerapan pada kasus pemilihan kriteria green hotel, karena saat ini di Amerika Serikat, para investor mulai melirik peluang green building sebagai investasi jangka panjang dikarenakan biaya operasional green building yang lebih hemat dibandingkan bangunan konvensional. Konsep green building merupakan salah satu upaya penghematan energi yang dapat diterapkan pada suatu gedung. Bahan dari penelitian ini merupakan data primer dengan melakukan penyebaran kuesioner kepada responden dengan menggunakan teknik sampling sukarela. Pada penelitian ini, terdapat 8 variabel independen yang terdiri dari 5 variabel atribut dan  3 variabel identitas responden. Penelitian ini bertujuan untuk mengetahui kriteria pengunjung dalam memilih green hotel yang paling diminati. Hasil dari penelitian ini adalah didapatkan kriteria green hotel yang paling diminati oleh pengunjung yaitu hotel dengan kualitas kamar mewah, perlengkapan mandi disediakan, pengunjung diwajibkan untuk menjaga lingkungan, ada praktik penggunaan plastik pada kemasan produk, dan ada penggunaan lampu juga peralatan hemat energi. Setelah itu dilakukan analisis lanjutan mengenai pengaruh dari demografi responden terhadap banyaknya keterpilihan kriteria green hotel terpilih pada setiap responden, dan diperoleh hasil bahwa usia, jenis kelamin, pekerjaan dan pengalaman menginap di green hotel secara bersama-sama tidak berpengaruh terhadap banyaknya keterpilihan kriteria green hotel terpilih dari setiap responden.

A discrete choice experiment of the impact of consumers’ environmental values, ethical concerns, and health consciousness on food choices

2017 ◽  
Vol 119 (4) ◽  
pp. 863-881 ◽  
Author(s):  
Sophie Ghvanidze ◽  
Natalia Velikova ◽  
Tim Dodd ◽  
Wilna Oldewage-Theron
Keyword(s):  
Social Responsibility ◽  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Ecological Impact ◽  
Food Choices ◽  
Product Attributes ◽  
Nutrition And Health ◽  
Content Type ◽  
The Impact

Purpose Over the last few decades, consumers’ concerns for healthier lifestyles and the environment have become the driving forces for forming food-buying intentions. The purpose of this paper is to investigate the impact of product attributes regarding nutrition and health benefits of products, the environmental impact of production and social responsibility of producers on consumers’ food and wine choices. Design/methodology/approach The empirical analysis is based on an online survey conducted in the USA, the UK and Germany, and incorporates a discrete choice experiment with visual shelf simulations. Findings Price and nutrition information are much more influential on consumers’ food choices than information about social responsibility of producers or the ecological impact of production. Product attributes emphasizing the ecological impact of production and social responsibility of food producers are specifically valued by consumers with high levels of environmental consciousness and by those concerned about goods production. Consumers who are health conscious regarding their lifestyle and diets derive high utility values from the nutritional information of the product. Practical implications The study contributes to an understanding of how to promote healthier food and wine choices and social and environmental responsibility of food and wine producers in various markets. Originality/value The study offers a comparison of product attributes concerning ecological, social, nutrition and health benefits of the product; as well the investigation of congruent interrelationships between the consumers’ values and related product attributes in three culturally distinct consumer groups.

scholarly journals The impact of health vs. non-health goals on individuals’ lifestyle program choices: a discrete choice experiment approach

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Tim M. Benning ◽  
Benedict G. C. Dellaert ◽  
Theo A. Arentze
Keyword(s):  
Discrete Choice Experiment ◽  
Discrete Choice ◽  
Choice Experiment ◽  
Choice Experiments ◽  
Discrete Choice Experiments ◽  
Experimental Conditions ◽  
Health Goals ◽  
Health Goal ◽  
Lifestyle Program ◽  
The Impact

Abstract Background Goals play an important role in the choices that individuals make. Yet, there is no clear approach of how to incorporate goals in discrete choice experiments. In this paper, we present such an approach and illustrate it in the context of lifestyle programs. Furthermore, we investigate how non-health vs. health goals affect individuals’ choices via non-goal attributes. Methods We used an unlabeled discrete choice experiment about lifestyle programs based on two experimental conditions in which either a non-health goal (i.e., looking better) or a health goal (i.e., increasing life expectancy) was presented to respondents as a fixed attribute level for the goal attribute. Respondents were randomly distributed over the experimental conditions. Eventually, we used data from 407 Dutch adults who reported to be overweight (n = 212 for the non-health goal, and n = 195 for the health goal). Results Random parameter logit model estimates show that the type of goal significantly (p < 0.05) moderates the effect that the attribute diet has on lifestyle program choice, but that this is not the case for the attributes exercise per week and expected weight loss. Conclusions A flexible diet is more important for individuals with a non-health goal than for individuals with a health goal. Therefore, we advise policy makers to use information on goal interactions for developing new policies and communication strategies to target population segments that have different goals. Furthermore, we recommend researchers to consider the impact of goals when designing discrete choice experiments.

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