Extending dichotomous choice contingent valuation methods to pre-test-market evaluation: the case of a cable television service

Abstract

The purpose of this paper is to introduce and test an extension of dichotomous choice contingent valuation methods to pre-test-market evaluation using the specific case of a cable television service. On the whole, respondents accepted the contingent market and were willing to contribute a significant amount, on average. This willingness varies according to individual characteristics and concerns about the service. It is concluded that the methods are potentially a useful tool for decision-makers in considering the provision of the service.