CRS is often asked to help companies optimize the characteristics, features, and functions of a product. That is, to learn which attributes customers most want included in a product, generally in the context of price. An optimized product, priced correctly, certainly helps to differentiate the product and improve chances for marketplace success.
There are many different “trade-off” techniques used today in marketing research. Some optimize the product attributes against competitive products and some optimize in a stand-alone environment. We use Conjoint, Discrete Choice, Choice Based Conjoint (CBC), and Max-Diff to optimize product attributes. We select the most appropriate technique from the toolbox based on client objectives. Each one has its own pros and cons.
Each technique results in slightly different output but at the core, all prioritize the attributes and their levels and provide the best combinations to offer in terms of maximizing purchase intent or share. When designing a new product, Conjoint or Max-Diff seem to be most appropriate. When entering an existing market, Discrete Choice and CBC seem to be most applicable since we are interested in understanding how the client’s product will perform against competition.
In all cases, we build “what if” simulators so that the client is able to model results based on different attribute configurations. Some of the techniques also yield estimated market share in light of product changes in the competitive set.
If you would like a whitepaper on this approach, please let us know using the Contact Us form or call us at the office 770-246-0298.