What Does WTP Stand For?

WTP stands for Willingness To Pay

Willingness To Pay (WTP) is an economic concept that represents the maximum amount an individual is willing to spend to acquire a good or service. It reflects personal preferences, perceived value, and consumer behavior, and is used in pricing strategies, market research, and value assessment to gauge how much customers value a product or service. Understanding WTP helps businesses optimize pricing, assess market demand, and enhance their offerings to better meet consumer needs.