The Concept of Conjoint Analysis

1. Predicting the profitability and/or market share for proposed new product concepts given the current offering of competitors. 2. Predicting the impact of new competitor products on profits or market share if we make no change in our competitive position. 3. Predicting customer switch rates either from our current products to new products we offer (cannibalism), or from our competitors’ products to our new products (draw). 4. Predicting the differential response of items 1-3 by key market segments purchasing our product. 5. Predicting competitive reaction to our strategies of introducing a new product. Specifically, should a new product be introduced, and if so, what is the optimal design configuration for this new product? Further, should pricing or other attributes of our current products be modified in response to the competition). 6. Predicting the impact of situational variables on customer preference. 7. Predicting the differential response to alternative advertising strategies and/or advertising themes. 8. Predicting the customer response to alternative pricing strategies, specific price levels, and proposed price changes. 9. Predicting competitive response to distribution strategies studying such diverse problems as determining the optimal channel of distribution, number or type of outlets, vendor selection, or sale person quotas.