mean willingness to pay

Mean willingness to pay refers to the average amount that individuals are prepared to spend on a product or service, based on their personal valuation. It is calculated by surveying or analyzing how much different people are willing to pay and then averaging those amounts. This measure helps businesses understand the typical consumer valuation, guiding pricing strategies and market assessments. Essentially, it reflects the common monetary value that consumers assign to a good or service, balancing individual preferences with overall market trends.