METHODOLOGY REVIEWChoice-Based Conjoints
By learning how buyers value the components of a product, we can better position, design, and improve profitability
Choice-Based Conjoints Outcomes
Realistic Decision Making
Founded on the principle that buyers are making decisions based on multiple attributes at the same t ime.
Pricing Optimizations
Determines the optimal price for the product . Can simulate scenar ios such as share impact when a compet tor drop price.
New Product Development
Identifies the best combination of features that will maximize share.
Product Optimizations
Measures which features are most important to elevate, reduce, or remove to increase share or sales.
Market Share Estimations
Simulates various market share outcomes based on product and price changes.
Share Cannibalization
Measures cannibalization of products to sales and share. A helpful tool for product portfolios
Conjoint Design
Construction
Attributes & Levels
Typical number of attributes & levels:
- Attributes: 4 to 8
- Levelswithin each attribute: 4 to 8
Can I have more attributes & levels than the typical?
- Yes. It just requires a more complex design and sample plan
Sample Size
Calculation of sample size depends on the number of…
Attributes
Levels within those attributes
Tasks per respondent
Reported groups
Constraints
Constraints are combinations of attribute levels that are not realistic trade-offs and therefore we do not want respondents to provide feedback. The more constraints, the more complex the design.
Other Considerations
- Extend the useful life of the research by incorporating possible future scenarios into defining levels.
- Remember to consider what business what you are trying to optimize (sales, market share, product interest), this will impact the design.
- Make sure you know how to use your simulator properly once it is delivered to you, incorrect interpretations are just as bad as a properly designed study.