Conjoint analysis helps clients determine the optimal pricing strategy and product features that will drive sales. Our “What if" models give clients the ability to “predict” the purchase intent for new products and concepts before going to market, or measure the “Gain” or “Loss” in market share based on proposed changes to existing products.
“WHAT iF” MODELS AND CONJOiNT ANALYSiS
First, we quantify customers’ relative tradeoffs when making a purchase decision by taking them through a conjoint survey exercise. These choices or ratings, when taken together, allow the researcher to compute the “derived importance” of each of the product attributes studied.
One of the key advantages of conjoint analysis is the ability to plug the results into market simulation models for forecasting. With conjoint analysis, the changes in the product or market can be incorporated into the simulation model to generate predictions of how consumers will respond to “what if” scenarios.
Product Design
The combination of: Imported, Light tasting, From Italy…, and 34oz for $8.00 results in a purchase intent score of 8.3. The client can change combinations of features to see how it will impact purchase intent.