How important is low price? How important is high quality? How important is good service? - PowerPoint PPT Presentation

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How important is low price? How important is high quality? How important is good service? PowerPoint Presentation
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How important is low price? How important is high quality? How important is good service?

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  1. Traditional Method for Collecting Information About Customer Needs and Wants Not Important Very Important 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 How important is low price? How important is high quality? How important is good service?

  2. Basics of Conjoint Analysis Robert Eng and Ashok Rao Babson College

  3. Techniques The following are some techniques which aid business in translating product ideas into marketable products: Conjoint Analysis Perceptual Maps House of Quality

  4. Concept Definition What is the product ? Who are the customers ? How appealing is the concept ? Will it be profitable ?

  5. Types of Analysis Attribute importance - in aggregate - by segment Predicting market share

  6. Rank 1 = best 8 = least Caramel Content Chocolate Type Nut % A B C D E F G H 0% 15% 15% 0% 15% 0% 15% 0% Bitter-Sweet Sweet Sweet Sweet Bitter-Sweet Sweet Bitter-Sweet Bitter-Sweet 40% 40% 0% 40% 0% 0% 40% 0%

  7. Caramel Content 15% Caramel 0% Caramel Chocolate Content Chocolate Content Sweet Bitter Sweet Bitter 0% 40% Nut Content

  8. Attribute Values Values Importance Attribute Sweet Bitter/sweet 0% Caramel Center 15% Caramel Center 0% Nuts 40% Nuts

  9. Total Utility Share of preference

  10. Steps for Conjoint Analysis • Identify possible attributes for • the potential target market • Select salient attributes (max. 5) • Assign levels to each attribute • Sample the potential target market • Compute attribute importance • Develop product concept based on • attribute importance • Project market share and financial viability • Select a product and map market segments • based on preference • Develop the marketing mix program