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The Effects of Incentives in a Choice-Based Conjoint Pricing Study

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Advances in Neuroergonomics and Cognitive Engineering (AHFE 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 953))

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Abstract

This study investigates the effects of incentives on a consumer’s choice of a utility plan. In our study that utilizes conjoint analysis, our research aims to understand the impact of incentives on consumers’ choice of a Time-of-Use (TOU) utility pricing plan. The results indicate that underlining the consequences and offering incentives influence the valuation of the attributes in competing choices.

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References

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Author information

Authors and Affiliations

  1. Drexel University, 3141 Chestnut Street, Philadelphia, PA, 19104, USA

    Hongjun Ye, Siddharth Bhatt, Wenting Zhong, Jan Watson, Amanda Sargent, Yigit Topoglu, Hasan Ayaz & Rajneesh Suri

  2. Drexel Business Solutions Institute, 3220 Market Street, Philadelphia, PA, 19104, USA

    Hasan Ayaz & Rajneesh Suri

Authors
  1. Hongjun Ye
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  2. Siddharth Bhatt
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  3. Wenting Zhong
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  4. Jan Watson
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  5. Amanda Sargent
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  6. Yigit Topoglu
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  7. Hasan Ayaz
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  8. Rajneesh Suri
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Corresponding author

Correspondence to Hongjun Ye .

Editor information

Editors and Affiliations

  1. Drexel University, Philadelphia, PA, USA

    Hasan Ayaz

Appendices

Appendix A: Role Play Scenarios

Scenario no.

Description

1

Which of the following two TOU plans do you like more?

2

Which of the following two TOU plans could help you save more on utility expense?

3

Which of the following two TOU plans could help you save more on utility expense? (top three participants who make decisions that will save the most will receive a $10 Amazon gift card)

Appendix B: Participant Demographics

Question no.

Description

1

Do you own or rent your residence?

2

What type of residence do you live in?

3

What is the size of the residence you live?

4

What types of utility services do you use?

5

What is your household composition like?

6

What is the average monthly electricity bill for your residence?

7

Describe your familiarity with “Time-of-Use” (TOU) pricing plan

Appendix C: Possible Choice Configurations (Pricing Plans)

Plan no.

Description

1

Non-peak rate: 5 cents/kWh;

Peak rate: 12 cents/kWh;

Peak time duration: 4 h

2

Non-peak rate: 5 cents/kWh;

Peak rate: 12 cents/kWh;

Peak time duration: 5 h

3

Non-peak rate: 7 cents/kWh;

Peak rate: 12 cents/kWh;

Peak time duration: 4 h

4

Non-peak rate: 7 cents/kWh;

Peak rate: 12 cents/kWh;

Peak time duration: 5 h

5

Non-peak rate: 5 cents/kWh;

Peak rate: 15 cents/kWh;

Peak time duration: 4 h

6

Non-peak rate: 5 cents/kWh;

Peak rate: 15 cents/kWh;

Peak time duration: 5 h

7

Non-peak rate: 7 cents/kWh;

Peak rate: 15 cents/kWh;

Peak time duration: 4 h

8

Non-peak rate: 7 cents/kWh;

Peak rate: 15 cents/kWh;

Peak time duration: 5 h

Appendix D: Example of Choices Presented (Plan 4 Vs. Plan 5)

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Ye, H. et al. (2020). The Effects of Incentives in a Choice-Based Conjoint Pricing Study. In: Ayaz, H. (eds) Advances in Neuroergonomics and Cognitive Engineering. AHFE 2019. Advances in Intelligent Systems and Computing, vol 953. Springer, Cham. https://doi.org/10.1007/978-3-030-20473-0_9

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