Paper
Measuring Willingness to Pay
Understanding customers' willingness to pay for Banking Correspondent services
2 pages
This note presents the development and implementation of an innovative qualitative research tool that determines the level of Willingness To Pay (WTP) for banking correspondent (BC) services. This tool is referred to as the WTP tool and can be used to assess the extent to which existing costs of banking impact WTP.
This WTP tool allows respondents to think about the relevance of a product in their lives and to quantify this relevance with a price. It:
- Considers respondents context, which has a bearing on how they estimate their WTP;
- Ensures that respondents provide a realistic valuation of the service;
- Allows stakeholders to understand how low income households think about pricing and cost;
- Is an effective way to estimate what potential customers would be willing to pay for BC services;
- Has been designed to be implemented in a very specific environment, but can be modified and used in other contexts as well.
The paper highlights the crucial role of the facilitator in ensuring that the respondents understand the model and in eliciting a realistic WTP.
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