Choice Based Conjoint Analysis as tool for New Product Development
Do you want to increase your sources of revenue through new products? The conjoint analysis allows you to identify target market preferences about the products that you are developing. It has the following benefits:
The conjoint analysis simulates the way that the consumer makes decisions in the real life. The test presents all the relevant attributes together to the respondent.
The conjoint analysis estimates the interviewee’s evaluation of the attributes without asking directly each feature importance. This is especially relevant regarding the price because the interviewees will generally reduce the price that they are willing to pay if they are asked directly. Besides, respondents tend to evaluate high all the attributes. If you ask, what is important to you about a product, they are likely to say that everything is important, but the reality is that the products can not have all the benefits at maximum level. Some attributes can have a higher level, but other will have a lower level. A higher quality will be more expensive (lower benefit from price) for example.
Furthermore, the conjoint analysis can uncover hidden drivers that may not be conscious to the respondent themselves. The interviewees just make choices about products. Many times, these choices don’t have a detailed analysis of the information but are a general evaluation of the whole product. However, the analysis of the data will show which attribute is more important.
The choice based conjoint (CBC) is a particular type of conjoint analysis that has been popular for some time. It presents several options of the complete product prototype to the interviewee from which he has to select one or none. This process of evaluation is highly preferred to others because it is very similar to the way that buyers behave in the marketplace and it is a simple task that everyone can understand.
One advantage of the CBC analysis is that it allows considering interactions. They are especially important in pricing studies. For example, you may want to consider the effect of women responses in the estimated price of a product. Another example of interactions is the preference for a smaller size if the price increases.
To execute the CBC, the respondent will be asked… (to continue reading, please buy the post for $3. Follow the link to Buy it Now)