While it’s still totally justifiable to be captivated by the power and reach that Big Data offers market researchers, its highly talked about demise wouldn’t be the end of an era, so much as it would be the evolution of a strategy.
Much like Big Data, Smart Data is a blanket term that really just refers to a more defined library of data available. Conjoint Analysis is perhaps the most efficient way of extracting consumer behavior for quantitative measurement. With this data, products and services can be measured in ways that no other method can.
Smarter Data with Conjoint AnalysisWhere as Big Data allowed access to an ocean of empirical information that market researchers would have to sift through to find information that may or may not be quantifiable, conjoint analysis has the ability to develop market simulations models, allowing businesses to predict consumer behavior in relation to product or service changes.
If a business stops offering a popular product due to the time and development dedicated to producing a successor, Conjoint Analysis can predict consumer response to this decision. In some cases, the natural decision for the business would be to halt production on the old product, instead going with the newer, more effective model. But for market researchers relying on Big Data to make an informed decision on whether to halt production would be making a decision with far less certainty than if they adhered to Conjoint Analysis.
A New Quantifiable ModelAs our access to mobile technology continues to inform our purchasing decisions, an new factor to consider in this process is arising. Being able to quantify this data, and create a model to detail how consumers are likely to react to changes in the marketplace means that businesses can make informed decisions. This eliminates a degree of uncertainty that could cripple a business, boosting efficiency and product loyalty.
From Big Data to Smart Data, and onto Conjoint Analysis, it is still apparent that the use of buzzwords to describe tools or strategies won’t go away. But as with businesses, the natural evolution of strategy and processes continues to progress thanks to the technology available, all in the name of eliminating uncertainty, and making informed business decisions.
Do you have a story where conducting pricing research with Conjoint Analysis was effective? If so, tell us about it in the comments section below or find out how you can by downloading the white paper.