new products management l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
New Products Management PowerPoint Presentation
Download Presentation
New Products Management

Loading in 2 Seconds...

play fullscreen
1 / 28

New Products Management - PowerPoint PPT Presentation


  • 370 Views
  • Uploaded on

New Products Management Chapter 7 Analytical Attribute Approaches: Trade-Off Analysis and Qualitative Techniques Trade-Off (Conjoint) Analysis Put the determinant attributes together in combinations or sets. Respondents rank these sets in order of preference.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'New Products Management' - benjamin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
new products management

New Products Management

Chapter 7

Analytical Attribute Approaches:

Trade-Off Analysis and Qualitative Techniques

trade off conjoint analysis
Trade-Off (Conjoint) Analysis
  • Put the determinant attributes together in combinations or sets.
  • Respondents rank these sets in order of preference.
  • Conjoint analysis finds the optimal levels of each attribute.
what is conjoint analysis
What is Conjoint Analysis?
  • A way to incorporate the structure of customer preferences into the new product design process. It helps evaluate how customers make tradeoffs between various product attributes (a decompositional approach).
  • The basic outputs of conjoint analysis are:
    • A numerical assessment of the relative importance each customers attaches to attributes of a product set.
    • The value (utility) provided to each customer by each attribute option.
use of conjoint analysis
Use of Conjoint Analysis
  • Designing new products that enhance consumer utility.
  • Forecasting sales/market share of alternative product concepts.
  • Identifying market segments for which a given concept has high value.
  • Identifying the “best” concept for a target segment.
  • Pricing products/product bundles.
  • Product line management.
  • Positioning new products to different segments.
product design conjoint analysis
Product Design: Conjoint Analysis

The approach derives customers’ utility values for attributes and attribute options based on customers’ stated overall preferences for different bundles of attributes. The following example shows Memory and Price bundles.

PriceMemory $1,000 $1,500 $2,000

8 Mb 4 2 1 16 Mb 7 5 3 24 Mb 9 8 6

9 = Most preferred

• • •

1 = Least preferred

simplified part worth utility calculation
Simplified Part-Worth(Utility) Calculation

Price Part- Memory $1,000 $1,500 $2,000 Worth

8 Mb 4 2 1 7/3 2.3 16 Mb 7 5 3 15/3 5.0 24 Mb 9 8 6 23/3 7.7

20/3 15/3 10/3

Part-Worth: 6.7 5.0 3.3

9 = Most preferred

• • •

1 = Least preferred

how to use in design tradeoff evaluation
How to Use inDesign/Tradeoff Evaluation

Example: 24 Mb vs 16 Mb = 7.7 – 5.0 = 2.7 units

$1,000 vs $1,500 = 6.7 – 5.0 = 1.7 units

So:  8 Mb is worth more than $500 to this customer.

2.7

(  –––  (1,500 – 1,000)  $795)

1.7

 Can use to assess value to customer of non-product (service) attributes.

slide9

Figure 7-3

Conjoint Analysis:

Graphical Output

Thickness Spiciness Color

2

1

0

-1

-2

UTILITY

Regular Thick Ex-Thick

Mild Medium-Hot Ex-Hot

Red Green

0.161 0.913 -1.074 1.667 0.105 -1.774 -0.161 0.161

conjoint analysis relative importance of attributes

Figure 7-3

(cont’d.)

Conjoint Analysis:Relative Importance of Attributes

0 20 40 60 80 100 %

Spiciness

Thickness

Color

59.8%

34.6%

5.6%

some qualitative attribute analysis techniques
Some Qualitative Attribute Analysis Techniques
  • Dimensional Analysis
  • Checklists
  • Relationships Analysis
    • There are many others.
a dimensional attribute list
Weight

Rust resistance

Length

Color

Water resistance

Materials

Style

Durability

Shock resistance

Heat tolerance

Explosiveness

Flammability

Aroma

Translucence

Buoyancy

Hangability

Rechargeability

Flexibility

Malleability

Compressibility

Figure 7-4

A Dimensional Attribute List
an idea stimulator checklist

Figure 7-5

An Idea Stimulator Checklist
  • Can the dimensions be changed? (larger, smaller, longer, shorter, thicker...)
  • Can the quantity be changed? (more, less, combine, fractionate...)
  • Can the order be changed?
  • Can the time element be changed?
  • Can the cause or effect be changed?
  • Can there be a change in character?
  • Can the form be changed? (animated, speeded, slowed, attracted...)
  • Can the state or condition be changed?
  • Can the use be adapted to a new market?
relationships analysis
Relationships Analysis
  • Force combinations of dimensions (features, functions, and benefits) together.
  • Techniques:
    • Two-dimensional matrix
    • Multidimensional (morphological) matrix
  • Household cleaning products example used six dimensions:
    • Instrument used, ingredients used, objects cleaned, type of container, substances removed, texture or form of cleaner
other methods lateral search techniques
Other Methods: Lateral Search Techniques
  • Free association
  • Stereotype activity
  • Lateral thinking -- avoidance
  • Creative stimuli words
  • Studying “big winners”
  • Use of the ridiculous
  • Forced relationships
some creative stimuli words
Guest stars

Alphabet

Truth

Outer space

Charity

His and hers

Style

Nation

Family

Videotape

Photography

Testimonials

Decorate

Fantasy

Hobbies

Holidays

Weather

Calendar

Push button

Snob appeal

Some Creative Stimuli Words
designing courtyard by marriott
Designing Courtyard by Marriott
  • Problem for Marriott
  • Early 1980s:
    • Running out of good sites for typical full service Marriott
    • Hotels (missing low-end business traveller segment).
  • Idea:
    • New chain for low-end business and/or pleasure travellers.
    • Business travellers? (6+ trips/mid-week).
    • Pleasure travellers? (2+ trips/stay in hotels/motels).
  • Hotel Chain should:
    • Offer good value for the money.
    • Have minimal cannibalization of Marriott’s other facilities.
    • Have market position with competitive advantage.
overall study design
Overall Study Design
  • 50 attributes, 2–8 levels/attributes.
  • Hybrid conjoint task.
  • Price elasticity, using ELASTICON model.
  • Positioning analysis: scaling, clustering to deal with demographics, attitudes and hotel usage.
  • 263 mid-week business travellers,83 high-end business travellers,255 non-business travellers
  • in Atlanta, Dallas, San Francisco, Chicago.
optimal hotel design features
Optimal Hotel Design Features

1. External factors: G building shape

G landscape design

G pool type and location

G hotel size

2. Rooms: G room size & decor

G type of heating & cooling

G location/type of bathroom

3. Food-related services: G type/location of restaurant

G room service

G vending services/stores

G in-room kitchen

4. Lounge facilities: G location

G atmosphere

G type of people (clientele)

optimal hotel design features cont d
Optimal Hotel Design Features cont’d

5. Services:G reservations

G registration/checkout

G limo to airport

G bellman

G message center

G secretarial service

G car rental

G maintenance

6. Leisure facilities:G sauna

G exercise room

G racquetball courts

G tennis courts

G game room

G children’s playroom & yard

7. Security factors:G security guards

G smoke detectors

G 24 hour video

overall study design and analysis
Overall Study Design and Analysis

Is the

concept

viable

Self-explicated

evaluation

Simulation

Guidelines for

product design,

positioning

and advertising

What is the best

competitive

position?

Hybrid conjoint analysis

and simulation

Multifact

evaluation of

complete offering

Cross-

validation

What pricing

strategy

to follow?

ELASTICON

Price/demand

response

Pricing

recommendation

What type of

location

to select?

Attitude and

preference

scaling

Preference

for location

types

Recommendation

for type of

location

What combination

of features

and services?

Supplementary

tasks and

background data

Management

Question

Model

Respondents’

Tasks

Additional

Modeling and

Validation

Output

Cross-

validation

Additional

guidelines for

segmentation,

positioning and

product design

50 factors and 167 levels that describe hotel features
50 Factors and 167 Levelsthat Describe Hotel Features

External Factors Pool type Corridor view

Building shape No pool Outside access/restricted view

L-shaped w/landscape Rectangular shapeEnclosed access/unrestricted view/

Outdoor courtyard Free form shape balcony or window

Landscaping Indoor/Outdoor Hotel size

Minimal Pool locationSmall (125 rooms, 2 stories)

Moderate In courtyardLarge (600 rooms, 12 stories)

Elaborate Not in courtyard

Rooms Size Sink location Bathroom features

Entertainment Small (standard) In bath only None

Color TV Slightly larger (1 foot)In separate area Shower Massage

Color TV w/movies at $5 Much larger (2.5 feet) In bath and separate Whirlpool (Jacuzzi)

Color TV w/30 channel Small suite (2 rooms) Size of bath Steam bath

cable Large suite (2 rooms) Standard bath Amenities

Color TV w/HBO, Quality of Decor Slightly larger/sink Small bar soap

movies, etc.Budget motel decor separateLarge soap/shampoo/

Color TV w/free movies Old Holiday Inn decor Much larger bath w/ shoeshine

Entertainment/Rental in room New Holiday Inn decor larger tub Large soap/bath gel/

NoneNew Hilton decor Very large/tub for 2 shower cap/sewing kit

Rental Cassettes/Atari New Hyatt decor Heating and Cooling Above items + toothpaste,

Rental Cassettes/Stereo Wall unit/full control

Rental Movies/Betamax Wall unit/soundproof/full control

Central H or C (seasonal)

Central H or C/full control

50 factors and 167 levels that describe hotel features23
50 Factors and 167 Levelsthat Describe Hotel Features

FoodRestaurant nearby Store Vending

Restaurant in hotel None No food in store None

None (coffee shop next Coffee shop Snack items Soft drink machine only

door) Fast food Snacks, refrigerated Soft drink and snack

Restaurant/lounge combo, Fast food or coffee shop items, wine, beer, machines

limited menu and moderate restaurant liquor Soft drink, snack, and

Coffee shop, full menu Fast food or coffee shop Above items and sandwich machines

Full-service restaurant, and good restaurant gourmet food items Above and microwave

full menu Room Service In-room kitchen facilities available

Coffee shop, full menu None None

and good restaurant Phone-in order/guest to Coffee maker only

Free continental pick up Coffee maker and

None Room service, limited menu refrigerator

Continental included in Room service, full menu Cooking facilities in room

in room rate

LoungeType of people Lounge nearby

Atmosphere Hotel guests and friends None

Quiet bar/lounge only Lounge/bar nearby

Lively, popular bar/ Open to public—Lounge/bar w/

lounge general appeal entertainment nearby

Open to public -

many singles

50 factors and 167 levels that describe hotel features24
50 Factors and 167 Levelsthat Describe Hotel Features

Leisure Racquet ball courts Children’s playroom/

Sauna Noneplayground

NoneYes None

Yes Tennis courts Playground only

Whirlpool/Jacuzzi None Playroom only

None Yes Playground and playroom

Outdoor Game room/Entertainment Pool extras

IndoorNoneNone

Exercise room Electric games/pinball Pool w/slide

None Electric games/pinball/ Pool w/slides and

Basic facility w/weights Ping-Pong equipment

Facility w/Nautilus Above + movie theater, Pool w/slides, waterfall,

equipment bowling equipment

Security Smoke detector Sprinkler system

Security guard None None

None In rooms and throughout Lobby and hallways only

11 a.m. to 7 p.m. hotelLobby/hallways/rooms

7 p.m. to 7 a.m.Alarm button 24-hours video cameras

24 hours None None

Button in room Parking/hallway/rooms

50 factors and 167 levels that describe hotel features25
50 Factors and 167 Levelsthat Describe Hotel Features

ServicesLimo to airport Cleanliness/upkeep Special Services

Reservations NoneManagement skill None

Call hotel directlyYes Budget motel level Information on

800 reservation number Bellman Holiday Inn level restaurants, theaters, etc.

Check-in NoneNon-convention Hyatt Arrangements and

StandardYes levelreservations

Pre-credit clearance Message service Convention Hyatt level Travel problem

Machine in lobby Note at front desk Fine hotel level resolution

Check out Light on phone Laundry/Valet Car maintenance

At front desk Light on phone and None None

Bill under door/leave key message under door Client drop off and Take car to service

Key to front desk/bill by Recorded message pick up Gas on premises/bill to

mail Secretarial services Valet pick up and drop room

Machine in lobby None off Car rental/Airline reservations

Xerox machine Self service None

Xerox machine and typist Car rental facility

Airline reservations

Car rental and airline

reservations

slide26

Room Price per Night is $44.85

This full profile description of a hotel offering is one of the 50 cards developed by a fractional factorial design of the seven facets each at the five levels (developed by the Marriott’s development team). Each rpondent received five cards following a block design.

  • Building Size, Bar/Lounge
  • Large (600 rooms) 12-storey hotel with:
    • quiet bar/lounge,
    • enclosed central corridors & elevators, and
    • all rooms have very large windows
  • Landscaping/Court
  • Building forms a spacious outdoor courtyard:
    • many trees & shrubs,
    • the swimming pool plus a fountain, and
    • terraced areas for sunning, sitting & eating.
  • Food
  • Small, moderately priced lounge and restaurant for hotel guests/friends:
    • limited breakfast with juices, fruit, Danish, cereal, bacon & eggs,
    • lunch: soup & sandwiches only, and
    • evening meal: salad, soup, sandwiches, six hot entrees including steak.
  • Hotel/Motel Room Quality
  • Quality of room furnishings, carpet, etc., is similar to:
    • Hyatt Regencies, and
    • Westin “Plaza” Hotels.
  • Room Size & Function
  • Room 1 foot longer than typical hote;motel room:
    • space for comfortable sofa-bed & 2 chairs,
    • large desk & coffee table, and
    • coffee maker & small refrigerator.
  • Service Standards
  • Full service including:
    • rapid check-in/check-out systems,
    • reliable message service,
    • valet (laundry pick-up/delivery),
    • bellman,
    • someone (concierge) arranges reservations, tickets, generally at no cost, and
    • cleanliness, up-keep, management similar to Hyatts & Marriotts .
  • Leisure
    • Combination indoor-outdoor pool,
    • enclosed whirlpool (Jacuzzi), and
    • well-equipped playroom/playground for kids.
  • Security
    • Night guard on duty 7 pm to 7 am,
    • fire/water sprinklers throughout hotel, and
    • all rooms have very large windows.

Would stay there Would stay there Would stay there Would rarely Would not

o almost all the time o on a regular basis o now and then o stay there o stay there

result
Result

“Courtyard by Marriott”

not

“small Marriott”