Conjoint Analysis and Choice Modeling

Choice modeling attempts to model the decision process of an individual or segment in a particular context.

The Project Conundrum, published in Research World, uses a choice modeling case study to demonstrate what can go wrong with marketing team magagement decisions.

The Multivariate Solutions SPSS Discrete Choice Module was presented at the SPSS User’s Conference. Multivariate Solutions wrote an additional module for the SPSS software.

Discrete Choice – Big George Burger simulates market share and revenue for a newly introduced burger for our fictional fast-food chain, Bush Jr.’s. The model uses discrete choice logistic regression and tests price sensitivity. Email us to request a copy of the simulator.

Political Message Conjoint Analysis is a communications analysis technique that shows what should be said to whom, and when.

Strategic Message – Maximum Difference Scaling is an easy-to-use choice technique that helps to develop a campaign’s strategic message.

Pharmaceutical Conjoint Analysis Model underscores the relative importance of a drug’s elements and estimates market share.

Maximum Difference Analysis show a set of the possible items and are asked to indicate the most and least appealing, in essence asking the consumer to choose elements of consumer products.

Pharmaceutical Exponential Probability Simulator calculates the probability of purchase of given product by two separate people from one of more than 20 subgroups and numerous product levels. This output is generated from a multidimensional discrete choice model. The percentage likelihood of purchase is the exponential of the fitted model for any of the 20 subgroups. Email us to request a copy of the simulator.

The Discrete Choice – Specialty Cracker Market simulates market share and revenue for a newly introduced product and its competitors.

Conjoint Presentation – Energy Drinks indicates the power of pricing within the consumer consideration trade-off considerations.

Dual Usage Market Penetration Likelihood Simulator – A dual use simulator is a combination of discrete choice model where respondents are asked to choose one item from a list of four or five, generally with rotating prices. In addition, respondents are then asked, of the one choice they make, how likely would they be to purchase it. This extra inquiry not only allows the researcher to gauge price sensitivity, but also to determine market penetration by simply adding one more question per section. Email us to request a copy of the simulator.

A Choice Model maximizing advertising effect is shown in Using Conjoint Analysis in Political Communications. This analysis, when used properly, can provide insight to the governor when he sets policy priorities or assesses main concerns dominating the voter’s mind as the election nears, or it can gauge the strength of the position ‘soup’ a given campaign will stir when it goes to press.

A Good Choice for Choice Modeling looks at the Max-Diff option.

choice-toolbox

A Look Inside the Choice Toolbox examines how to select the most appropriate choice model from these five most commonly used ones: Paid-comparison Analysis, Conjoint Analysis, Discrete Choice Modeling, Max-Diff, and Adaptive Choice Analysis.

Brand Equity and Discrete Choice Models as explained in this Quirk’s Magazine article, is an example of a method by which we are able to assign an exact dollar-value to a brand name and replicate brand performance is a real-world marketplace.

The Price Toolbox is an article published in Admap Magazine summarizing various pricing methods and their effectiveness.

Olive Oil Conjoint Purchase Intent Simulator is by far the most interesting aspect of Conjoint Analysis. This gives you the ability to “predict” the market share of new products and concepts that may not exist today. This also gives you the ability to measure the “Gain” or “Loss” in market share based on changes to existing products in the given market. Email us to request a copy of the simulator.

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Choice modeling attempts to model the decision process of an individual or segment in a particular context. Choice Models are able to predict with great accuracy how individuals would react in a particular situation.

Unlike a poll or a survey, predictions are able to be made over large numbers of scenarios within a context, to the order of many trillions of possible scenarios. Choice Modeling is believed to be the most accurate and general purpose tool currently available for making behavioral predictions about human decision making and is regarded as the most suitable method for estimating consumers’ willingness to pay for quality improvements in multiple dimensions.