MAR4832 CONJOINT ANALYSIS TEST REVIEW
One alternative approach to conjoint analysis that brand managers can employ to
design new products and services - Answers - concept testing
Concept Testing - Answers - occurs when a buyer is shown a product concept and
asked questions regarding their purchase interest, or new products are placed in test
markets
(can be completed through focus groups)
Concept Testing Weaknesses - Answers - -can be expensive and time-consuming
-investigates just one or few variations of a product concept
-no approach like this by itself has been consistently successful and cost-efficient
-no tradeoffs
-doesn't mimic the real world
How Conjoint Analysis helps brand managers - Answers - -better understand what
aspects of their product drive their customers' brand choice
-uses the best elements in these techniques in a cost-effective survey research
approach
-gives managers the ability to estimate the results of millions of possible concept tests
based on data from a single survey (300-600 respondents)
-can estimate demand curves and substitution effects
-assess cannibalization effects
Times when Conjoint Analysis isn't appropriate - Answers - -If a product is so complex
that it requires varying levels of a lot of different features
-when there are no tradeoffs available
-If a firm cannot change the attribute levels
-if a product can't be identified as a bundle of attributes
-if customers cannot reasonably rate the product
A typical product may have many features (e.g., think of a product like a cellphone); are
all those features explicitly used in a typical conjoint study? - Answers - No
-listing every feature would be unnecessary
-can cause issues with respondents
Attributes - Answers - characteristics of a product
(Ex: brand, price, color)
Levels - Answers - -observations on the independent or predictor variables
-describe attributes
(Ex: Brand = A, B, C; Price = $50, $100, $150)
One alternative approach to conjoint analysis that brand managers can employ to
design new products and services - Answers - concept testing
Concept Testing - Answers - occurs when a buyer is shown a product concept and
asked questions regarding their purchase interest, or new products are placed in test
markets
(can be completed through focus groups)
Concept Testing Weaknesses - Answers - -can be expensive and time-consuming
-investigates just one or few variations of a product concept
-no approach like this by itself has been consistently successful and cost-efficient
-no tradeoffs
-doesn't mimic the real world
How Conjoint Analysis helps brand managers - Answers - -better understand what
aspects of their product drive their customers' brand choice
-uses the best elements in these techniques in a cost-effective survey research
approach
-gives managers the ability to estimate the results of millions of possible concept tests
based on data from a single survey (300-600 respondents)
-can estimate demand curves and substitution effects
-assess cannibalization effects
Times when Conjoint Analysis isn't appropriate - Answers - -If a product is so complex
that it requires varying levels of a lot of different features
-when there are no tradeoffs available
-If a firm cannot change the attribute levels
-if a product can't be identified as a bundle of attributes
-if customers cannot reasonably rate the product
A typical product may have many features (e.g., think of a product like a cellphone); are
all those features explicitly used in a typical conjoint study? - Answers - No
-listing every feature would be unnecessary
-can cause issues with respondents
Attributes - Answers - characteristics of a product
(Ex: brand, price, color)
Levels - Answers - -observations on the independent or predictor variables
-describe attributes
(Ex: Brand = A, B, C; Price = $50, $100, $150)
