OBJECTIVES: Patient preferences are playing an increasingly important role in pharmacoeconomics and outcomes research but are often misapplied. This study demonstrates good practices and serves as case study for applying stated-preference methods by studying the preferences of patients with type 2 diabetes.  METHODS: A Discrete Choice Experiment (DCE) was conducted in accordance with three ISPOR Conjoint Analysis Taskforce guidance papers. We developed a choice experiment with six attributes according to a Bayesian efficient design. Participants with self-reported type 2 diabetes from an online, national panel completed the DCE. Results were analyzed using mixed logit and effects coding to estimated preference weights (PW) and willingness to pay (WTP). RESULTS: CONCLUSIONS: Based on the high preference weights of treatment harms compared to benefits, patients might value immediate medication impact more highly than future consequences of uncontrolled diabetes. Optimal ways to communicate the future v. immediate consequences of treatment need to be addressed.