Consumer Behavior Conjoint analysis Conjoint Analysis.

of 12 /12
Consumer Behavior Consumer Behavior Conjoint analysis Conjoint Analysis Conjoint Analysis

Embed Size (px)

Transcript of Consumer Behavior Conjoint analysis Conjoint Analysis.

marketingSteps in conjoint analysis
Uses of conjoint analysis
Consumer Behavior
Consumer Behavior
Conjoint analysis
Basic idea
Overall utility for a product can be decom- posed into the utilities (called part-worths) associated with the levels of the individual attributes of the product;
The relative importance of a given attribute is given by the ratio of the part-worth range for that attribute divided by the sum of all part-worth ranges;
Consumer Behavior
Consumer Behavior
Conjoint analysis
Select product profiles to be measured
Choose a method of stimulus presentation
Decide on the response method
Collect and analyze the data
Interpret the results
Identify the relevant product attributes that are considered during choice
Select attribute levels that represent the options actually available in the market
Trade-off between the completeness of the representation and the complexity of the design
Consumer Behavior
Consumer Behavior
Conjoint analysis
Product profiles
all possible combinations of the levels of the various attributes
Fractional factorial designs:
subset of all possible combinations
orthogonal designs in which each level of one attribute is paired equally with all the levels of other attributes
Consumer Behavior
Consumer Behavior
Conjoint analysis
4 GB of Ram, and a
Screen Size of 15.4 inches –
at a Price of $1,200.
Verbal descriptions
Consumer Behavior
Consumer Behavior
Conjoint analysis
Response method
Rankings or ratings of the product profiles in terms of preference, purchase probability, etc.
Pairwise comparisons of product profiles in terms of preference, purchase probability, etc.
Choice of a product from a set of product profiles
Consumer Behavior
Consumer Behavior
Conjoint analysis
In-class exercise
Using the data in the table, answer the following questions:
(a) How much utility does each of the two consumers attach to the different levels of the five attributes? (Hint: Compute each consumer’s average rating of all the options with a given feature. For example, to figure out how much consumer A values the Apple brand name, compute the average rating of the six Apple laptops.)
(b) What’s the relative importance of the five attributes for the two consumers?
(c) Consider consumer A’s ratings. For this consumer, what’s the predicted utility of a Dell computer with 160 GB of hard drive space and 2 GB of RAM, a 12.1 inch screen, and a price of $1,200?
(d) How much could you raise the price if you increased the screen size from 12.1 to 15.4 inches?
Consumer Behavior
Consumer Behavior
Conjoint analysis
Market segmentation
Q: How would you segment the market using individual-level conjoint analysis output?
New product design
Q: How can conjoint analysis be used for new product design?
Trade-off analysis (esp. in pricing decisions)
Q: How much could the price of a Dell computer with 160 GB of hard drive space and 2 GB of RAM, which currently sells for $1,200, be raised if the screen size were increased from 12.1 in to 15.4 in?
Competitive analysis