Choice-based modeling

Are sales not all they could be? As with most products, do you have only one chance to have each model come out with the right features and at the right price? The simplest - and sometimes most simplistic answer - is that the price is too high. Lowering the price may be just the ticket to minimizing profits.

Our Meta-Product-Optimization service combines three critical elements into one tool to optimize product profits

• Which features buyers value the highest
• Which features have the highest ROI taking costs into account
• The price response curve for targeted segments
• The optimal design and price

All of these elements are combined into a single spreadsheet model that you can analyze and manipulate to determine the optimal mix.

This is a custom service from MetaFacts, which means it is tailored to fit your needs and the market segments under study.

Why use conjoint or choice-based modeling?

Why should you use conjoint analysis? To begin with, conjoint analysis measures a range of attributes like no other method. Using traditional survey methods places an unrealistic burden on respondents to rate their value of each attribute. This is both difficult and meaningless for most people to complete, especially if the person doesn't have a lot of knowledge of or involvement with the product, as in house paint or digital cameras.  Conjoint analysis, on the other hand, divides up the task into a series of choices. Taken together, these give the ability to determine the relative importance of each of the attributes studied. Instead of "stated importance", conjoint analysis delivers "derived importance" values for each attribute.

Even better, conjoint analysis provides lasting value, providing the ability to quickly predict buyer behavior even with shifting market conditions. Markets are always in a state of flux, with new products entering, competitors emerging, channels shifting, prices changing and marketing constantly inventing new strategies. With traditional research, a new study is required each time the market changes. With well-designed conjoint analysis, the changes in the market or competitive set can be incorporated into the simulation model to estimate predictions of how buyers will respond to the changes. For many markets, these models can maintain their accuracy for two or three years before needing to be refreshed or adjusted.

For markets with quickly changing products, competitors and buyers, conjoint and choice-based modeling can be incorporated into a continuous program that will allow the simulation models to be updated with current updated information from new market segments and about new competitors and product areas. 

What's special about the way MetaFacts conducts choice-based modeling?

MetaFacts is unique in several ways which benefit our customers. First, because we are steeped in research of technology and consumer products, we understand the realities and intracacies of studying consumers who are oftentimes buying products that are complex and with features and attributes that are not fully known by the buyers. Also, because we can combine your customer research with our Technology User Profile large-scale demographic research, you can gain solid demographics that not only let you size the segments you need to target, but also fully profile and understand them. This gives you an unparalleled wealth of information that lets you fully optimize each product launch.

Home

Send mail to  MetaFacts with questions or comments about this web site.
Copyright © 1998-2008 MetaFacts, Inc.
Technology User Profile^® is a registered trademark of MetaFacts, Inc.