Conjoint,Analysis,for,Marketin marketing Conjoint Analysis for Marketing Research
Awhile ago, I got an email from one of the "gurus" I follow and it shocked me. The gist of it was this person wanted to trade services for a household item.To say it floored me would be an understatement.What was worse was a few days later t Automation technologies represent a fundamental aspect of any modern industry. The major types of industrial automation solutions, such as DCS, PLC, SCADA, and MES, are used on a large-scale in process and discrete industries.DCS technologie
Normal 0 MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Times New Roman";} The problems with traditionalproduct testing were shown dramatically in 1985 when Coca Cola carried outmarket research at a cost of $4 million, looking for a new formulation toreplace the classic Coke. Despite the fact that the New Coke was preferred toClassic Coke by 55% of people in tastetests, the alienation of a significant number of consumers who preferred theclassic formulation resulted in a public outcry by Coca Cola loyalists.Basically they were saying to Americadont mess with our Coke. The major reason for the failure ofthe research into the New Coke was that it was assumed, incorrectly, that abetter tasting formulation more like Pepsi would sell more Coke. This is abasic assumption that underlies most conventional concept and product testing. The faulty research failed toreveal that the strength of the Coke brand far outweighed small preferences intaste. In fact in carrying out typical blind product testing Coca Colamanagement had badly underestimated the power of their brand. As Donald RKeough, President of Coca Cola said in explaining the research debacle: We didnot understand the deep emotions of so many of our customers for Coca Cola. Directquestioning like the following used in product testing leads to inflatedestimates of importance. Usually respondents are asked: In buying a small car how important is it to you that it gets highmileage per gallon? They are thenasked to indicate the importance on a five-point scale ranging from 1 = Notimportant to 5 = Extremely important But if we alsoask about the relative importance of styling and warranty then we shall likelyfind that these matters are just as important as m.p.g. Theconjoint task is more realistic. Respondents may be asked: Which of the following small carswould you choose to buy? (01)Car 2009 Chevrolet Aveo5MSRP $11,6951.6-liter, 107-hp four-cylinder engine27 mpg city/34 mpg hwyAM/FM stereo with AUX jack3 year/36K warrantyComfort and quality rating 8/10Transmission manual (02)Car 2009 Kia Rio5MSRP $13,3251.6-liter, 110-hp four-cylinder engine27 mpg city/32 mpg hwyAM/FM/CD/MP3/SIRIUS, USB-AUX jack5 year/60K warrantyComfort and quality rating 7/10Transmission - manual Conjointanalysis has developed in the past two decades to become much easier to use inresearch. Conjoint analysis has always been a powerful research techniquebecause, rather than asking consumers to rate the attributes of products,something consumers are not particularly good at, it presents products as abundle of attributes and asks respondents to choose between the products. Thusthe conjoint task for consumers is very similar to what they do when shopping. Conjointanalysis uses powerful experimental designs and statistical techniques tomeasure the effect each attribute of a product has on consumer choices.Conjoint designs lead to much more powerful research than the typical expost-facto designs of typical concept research. Conjointanalysis can: Optimize a product lineMeasure the strength of a brand and learn howexploit the brands strength Estimate price elasticities of demand; thisallows a company to construct models of demand for products at different pricesin existing markets or in new marketsSegment customer bases to estimate, forinstance, the size of a market segment made up of brand loyalists.
Conjoint,Analysis,for,Marketin