10. Conjoint Analysis in Product Design Should we offer our business travelers more room space or a fax machine in their room? Given a target cost for a product, should we enhance product reliability or its performance? Should we use a steel or aluminum casing to increase customer preference for the new equipment?
11. P&G and Disposable Diapers Question: What value do consumers associate with two improved features in disposable diapers: Improved absorbency Elastic waistband
12. Conjoint Analysis Assumption Products can be defined by their individual attributes and levels within the attribute Consumer responses to the overall preference can be then partitioned to attributes
26. Weightage and Relative Importance of Each Attribute Processor Speed = 57% Hard Drive = 29% Memory = 14%
27. Segment consumers based on preferences Are there segments in terms of preferences? Here preference is the “basis” and “age” could be the descriptor
28. Eg. Packaged SoupWhich is the most important attribute & which is the best product to introduce?
29. Conjoint Simulation - The Motivation What share can the new brand obtain? Where does this share will come from?
30. Conjoint Simulation - The Principle Before introduction share: A=40%, B=60%. After introduction share: A=20%,B=50%, and New=30%.
32. Conjoint Study Process Stage 1—Design the conjoint study: Step 1.1:Select attributes relevant to the product or service category, Step 1.2:Select levels for each attribute, and Step 1.3:Develop the product bundles to be evaluated. Stage 2—Obtain data from a sample of respondents: Step 2.1:Design a data-collection procedure, and Step 2.2:Select a computation method for obtaining part-worth functions. Stage 3—Evaluate product design options: Step 3.1:Segment customers based on their part-worth functions, Step 3.2:Design market simulations, and Step 3.3:Select choice rule.
33. 29 Attributes Should Be… Determinant Easily measured and communicated Controllable by the company Realistic Such that there will be preferences for some levels over others Compensatory As a set, sufficient to define the choice situation Without built-in redundancies
37. Designing a Frozen Pizza – Paired Comparison Approach 1. Crust2. Type of Cheese3. Price PanRomano$ 9.99 ThinMixed cheese$ 8.99 ThickMozzeralla$ 7.99 4. Topping5. Amount of Cheese Pineapple2 oz. Veggie4 oz. Sausage6 oz. Pepperoni A total of 324 (3 * 4 * 3 * 3 * 3) different pizzas can be developed from these options!
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