How should the business determine WTP, WTA, or consumer surplus?

By collecting data on past transactions, the business can determine WTP and WTA. These data can then be used to calculate the amount of products or services bought, the price and other metrics relevant such as the customer’s reviews. The business can then use this information to calculate the willingness-to-pay (WTP), willingness-to-accept (WTA) and consumer surplus for these customers. Survey research is another way to gather additional insights about customer preferences in relation to product features and price points. This information can be used as a basis for determining the optimal pricing strategy. Finaly, companies should incorporate economic incentives like discounts and loyalty programs into their pricing strategy to drive profits while maximising value for customers.