Module Note | March 2011

Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay

by David J. Collis

Abstract

This note is designed to provide strategists with tools to perform two critical customer-related analyses: determining willingness to pay — the estimation of how much a given customer would be willing to pay for a particular product or service; and demand estimation — predicting the overall size of the market or segment which a company chooses to serve.

Keywords: Price; Demand and Consumers; Competitive Advantage; Management Analysis, Tools, and Techniques; Market Participation; Segmentation;

Citation:

Collis, David J. "Quantitative Analysis of Competitive Position: Customer Demand and Willingness to Pay." Harvard Business School Module Note 711-495, March 2011.