Choice Modeling (Conjoint and Discrete Choice)
It is human nature to want the best product at the lowest price. But realistic consumers know that in order to get the best product, they have to pay a fair price. Before they make a purchase, they typically evaluate the various products on the market and compare prices. Their purchase is a reflection of what they value.
Choice modeling refers to the group of techniques that simulate the purchase process – the choices that consumers make. The techniques are used to measure the value of attributes and measure preferences for a product or service.
The results from choice modeling research allow us to understand the relative importance of specific product features, learn what the features are worth, and measure the value of various product designs. Choice modeling, which includes traditional conjoint and the newer analytic choice-based conjoint (also known as discrete choice) are typically used in:
- Product design
- Product/service bundling
- Price sensitivity research
Choice modeling enables our clients to answer questions such as:
- Which product features could be eliminated without losing sales volume?
- Which features must be included in the new product to generate interest?
- What should we charge for the new product?
