Getting Started With Conjoint Analysis: Strategies For Product Design And Pricing Research

Getting Started with Conjoint Analysi Strategies for Product Design and Pricing Research Second Edition Bryan K. Orme -*' •* ! \ v* '\ M L- /' ,A V !/ r^ Research Publishers "-' v.-/ /- V Getting Started with Conjoint Analysis: Strategies for Product Design and Pricing Research Second Edition by Bryan K. Orme Copyright © 2010 by Research Publishers LLC Contents All rights reserved. No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, electronic, photocopying, recording, or otherwise, without the prior written permission of the publisher. f ^ .-•;') Publisher Research Publishers LLC 660 John Nolen Drive Madison, WI53713-1420 USA http://www.research-publishers.com Foreword ^ } ! X $ X X X X X X Exhibit 2.2. Credit card design plan degree of precision. For example, it would be difficult to distinguish the separate effects of brand and interest rate if Visa always appeared with the lowest interest rate. Would the preference for such a concept be due to the desirability of Visa or the low interest rate? 2.3 2.2 :^ ^ N? How much do you like this credit card offer? Use a scale from Oto 10, where 0 *= not at all and 10 = very much. Write your answer in the blank box. 20%lhterest cmdlt limit 9 2.3 Credit Card Survey X X How Conjoint Analysis Works Credit Card Survey Now that I have given an introduction to conjoint analysis and design plans, please complete a survey as if you were choosing a new credit card. Drawing upon the design plan, exhibit 2.3 presents nine credit card offers to be evaluated. For each credit card offer, you are asked," "How much do you like this credit card offer?" Use a ten-point scale to score each offer, where 0 means "not at all" and 10 means "very much." After you have completed the credit card survey, rank the credit card offers in the final exercise (exhibit 2.5 on page 17). I hope you found the credit card survey interesting. You probably also found it a bit challenging. To evaluate the cards, you probably developed a strategy. Perhaps you decided early on which attribute was most important to you, and you based your decision on that aspect. Perhaps each of the attributes carried about equal weight in your decision, and you needed to decide how much of one you were willing to give up for the other. You probably did not find an offer that was exactly what you wanted in every way. So it is with real purchase decisions. Consumers make these kinds of trade-offs every day. 10 How Conjoint Analysis Show how much you like each of the nine credit card offers below by writing your answers in the blank boxes. Use a scale from 0 to 10, where 0 = not at all and 10 - very much. Discover 20% interest $5,000 credit limit MasterCard 10% interest $2,500 credit limit Utilities 11 Now you are about to learn why conjoint analysis is so useful to managers and market research analysts. Based on the credit card ratings you provided, you will compute a