MAR 4832 FINAL QUESTIONS AND VERIFIED
ANSWERS
What are some approaches (other than conjoint analysis) that brand managers can
employ to design new products? - Answers - MaxDiff (Maximum Difference Scaling)
features are rated (not as products but as features) and each respondent answers
which is the most important and desirable and which one is least important and
desirable.
limited analytical capabilities and depth of insight
less insightful in simulations of consumer preferences.
Self-explicated conjoint
older technique that assumes that people's preferences of product are a sum of
preferences for its product features (the same way as conjoint). In this analysis people
usually go through 2 set questions
Approach is proven to be subpar. It is not based on regression analysis, doesn't let
people make tradeoffs and people are asked to self-assess the factors that drive their
decisions
Two-attribute trade-off analysis
early conjoint-like research technique. Respondents were presented with tables that
contained all possible combinations of levels of 2 attributes. Respondents need to rank
each column by according to their preference
if there are a lot of attributes people get bored and develop patterns to go through them
quickly. Also, not realistic approach.
What can conjoint analysis do for the brand manager? - Answers - It can help them
better understand what aspects of their product drives their customers brand choice
Are there conditions under which conjoint analysis may not be appropriate? - Answers -
Product cannot be identified as a bundle of attributes, if you don' t know important
attributes or value of one attribute is related to the level of another; category is totally
revolutionary or customers cannot reasonably rate the product; if a firm cannot change
the attribute levels.
The relationship between attributes to compensate loss from one utility with another
Whenever it is reasonable to do a trade-off, do conjoint
When tradeoff's are not available, Conjoint is not appropriate
A typical product may have many features; while conducting a conjoint study what is
meant by "attributes" and their "levels"? - Answers - Attributes is a characteristic of a
product. The Levels are the degrees of the characteristics
Ex - Attribute = Color, Level= Red, Purple, Orange.
Ex - Attribute = Battery Life, Level= 10 min, 30 min, 45 min
, How are "attributes" and "levels" determined? - Answers - They are determined in-
house by contact with company people from a variety of functions
What is the role of exploratory research—such as focus group interviews—in
conducting conjoint analysis? - Answers - Focus groups show their preferences and
perceptions toward a set of products and that is analyzed and converted into value
system that shows the importance and desired value of each attribute
What is meant by a focus group discussion guide? - Answers - Guide of questions for
conducting a focus group discussion
How to find Utilities - Answers - Traditional Conjoint Approach- rank or rate
combinations
Full-Factorial- all combinations are shown to user
Sawtooth is different (Choice Based Conjoint)- they make a choice on combinations
Partial-Factorial
3 Conjoint Analysis Outputs - Answers - Utilities
Market Simulations - incredibly valuable, can't get there until you find
Importance Scores- critical, contingent on utilities
Identify and explain the differences among the outputs one can obtain from conjoint
analysis (e.g., how are partworth utilities different from the relative importance of
attributes, etc.) - Answers - Part worths show desirability, importance shows influence
on choice
What are market simulations and how might they be useful? - Answers - Market
simulations are competitive market scenarios to predict which products respondents
would choose
What is typically assumed in conducting such simulations? - Answers - All attributes
have been accounted for that affect the buyer choice
Each product has equal availability
Respondents are aware of all products
The products reach long range equilibrium
Equal effectiveness of the sales force
No out of stock conditions
3 different approaches to conduct Market Simulations? - Answers - Linear Approach-
V1/(V1+V2+V3)
Logit Approach- (e^v1)/(e^v1 + e^v2 + e^v3)
Logit is more predictable find partworth for attributes and add to constant, measure of
utility
Highest (First choice approach)
ANSWERS
What are some approaches (other than conjoint analysis) that brand managers can
employ to design new products? - Answers - MaxDiff (Maximum Difference Scaling)
features are rated (not as products but as features) and each respondent answers
which is the most important and desirable and which one is least important and
desirable.
limited analytical capabilities and depth of insight
less insightful in simulations of consumer preferences.
Self-explicated conjoint
older technique that assumes that people's preferences of product are a sum of
preferences for its product features (the same way as conjoint). In this analysis people
usually go through 2 set questions
Approach is proven to be subpar. It is not based on regression analysis, doesn't let
people make tradeoffs and people are asked to self-assess the factors that drive their
decisions
Two-attribute trade-off analysis
early conjoint-like research technique. Respondents were presented with tables that
contained all possible combinations of levels of 2 attributes. Respondents need to rank
each column by according to their preference
if there are a lot of attributes people get bored and develop patterns to go through them
quickly. Also, not realistic approach.
What can conjoint analysis do for the brand manager? - Answers - It can help them
better understand what aspects of their product drives their customers brand choice
Are there conditions under which conjoint analysis may not be appropriate? - Answers -
Product cannot be identified as a bundle of attributes, if you don' t know important
attributes or value of one attribute is related to the level of another; category is totally
revolutionary or customers cannot reasonably rate the product; if a firm cannot change
the attribute levels.
The relationship between attributes to compensate loss from one utility with another
Whenever it is reasonable to do a trade-off, do conjoint
When tradeoff's are not available, Conjoint is not appropriate
A typical product may have many features; while conducting a conjoint study what is
meant by "attributes" and their "levels"? - Answers - Attributes is a characteristic of a
product. The Levels are the degrees of the characteristics
Ex - Attribute = Color, Level= Red, Purple, Orange.
Ex - Attribute = Battery Life, Level= 10 min, 30 min, 45 min
, How are "attributes" and "levels" determined? - Answers - They are determined in-
house by contact with company people from a variety of functions
What is the role of exploratory research—such as focus group interviews—in
conducting conjoint analysis? - Answers - Focus groups show their preferences and
perceptions toward a set of products and that is analyzed and converted into value
system that shows the importance and desired value of each attribute
What is meant by a focus group discussion guide? - Answers - Guide of questions for
conducting a focus group discussion
How to find Utilities - Answers - Traditional Conjoint Approach- rank or rate
combinations
Full-Factorial- all combinations are shown to user
Sawtooth is different (Choice Based Conjoint)- they make a choice on combinations
Partial-Factorial
3 Conjoint Analysis Outputs - Answers - Utilities
Market Simulations - incredibly valuable, can't get there until you find
Importance Scores- critical, contingent on utilities
Identify and explain the differences among the outputs one can obtain from conjoint
analysis (e.g., how are partworth utilities different from the relative importance of
attributes, etc.) - Answers - Part worths show desirability, importance shows influence
on choice
What are market simulations and how might they be useful? - Answers - Market
simulations are competitive market scenarios to predict which products respondents
would choose
What is typically assumed in conducting such simulations? - Answers - All attributes
have been accounted for that affect the buyer choice
Each product has equal availability
Respondents are aware of all products
The products reach long range equilibrium
Equal effectiveness of the sales force
No out of stock conditions
3 different approaches to conduct Market Simulations? - Answers - Linear Approach-
V1/(V1+V2+V3)
Logit Approach- (e^v1)/(e^v1 + e^v2 + e^v3)
Logit is more predictable find partworth for attributes and add to constant, measure of
utility
Highest (First choice approach)
