|
METHODOLOGIES: CHOICE MODELLING |
- Different research problems require different solutions. Choice modelling or Conjoint Analysis are two techniques which aid marketers in decisions about the optimum product and/or channel design, and in some instances optimising pricing decisions
- Sometimes Choice Modelling is the best solution but for other problems various Conjoint Analysis approaches are likely to deliver the best solution
- Chant Link & Associates selects the best technique for the customer's problem or opportunity. For example:
- Choice modelling: strictly speaking, is based on a statistical approach called "Discrete Choice Modelling" a technique used to implement consumer behaviour theory in applied settings
- Conjoint Analysis: involves the researchers constructing a set of variables that earlier research indicates are the main influencers of consumers' choice. The researcher then uses experimental design procedures to generate a smaller array of these choice sets (because the complete array is usually far too large for consumers to deal with)
- In conjoint analysis, the researcher then requires the consumer to choose between the various choice bundles/packages, and then uses sophisticated statistical procedures to derive the importance consumers have given to the variables that comprise the choice sets in order to arrive at their final choices
- This information then allows the researcher to generate optimum product bundles, predict market share given various scenarios and so on
|
|
|
 |
|
