Skip to main content

The Role of Conjoint Analysis: Apple vs. Samsung

When launching or updating products into the market, conjoint analysis can give businesses and market researchers a competitive edge. In the most basic of terms, rather than just slapping a price tag of $10 on a red widget and releasing it onto an unsuspecting marketplace, conjoint analysis can determine that more people would buy a blue gizmo and would be willing to pay $15 for the item. Anyone can clearly see the value and benefits of using this type of predictive technology.

Preeti Nathan, Director of Customer Insights for the national chain of Safeway grocery stores, cashed in on a conjoint project by using tools from Survey Analytics. In a case study she stated, “It was just the right mix of sophistication and simplicity.”

Apple, Samsung and Conjoint

According to market research released by the New York Times, the three industries that have surpassed the trillion-dollar mark are food, automobiles and defense with sales of mobile devices set to reach this milestone in the near future. With billions of dollars on the line from the sales of these handheld devices, sparks are already beginning to fly.

Many already know that Apple and Samsung are knee-deep in a lawsuit, each suing the other for patent infringements found on their devices. Apple is seeking over $2 billion in damages, but how did they arrive at that figure? That’s right, conjoint analysis.

Apple hired John Hauser, professor of marketing at MIT, to conduct research and testify in court as an expert witness. Using conjoint analysis, Hauser was able to determine that customers would be willing to pay anywhere from $32 to $102 extra for the features in question. Samsung fought back with their own marketing expert from Wharton, Professor David Reibstein.

Reibstein questioned the research, but not on quantitative terms. His contention was that the research was flawed because it didn’t include other important attributes such as brand name, operating system and battery life. He was quoted as saying it was like doing research "on cup holders in cars while ignoring the manufacturer name."

The Power of Conjoint Analysis

The important lesson to be learned from this court case is that the research from conjoint analysis did hold up in court when it came to putting a dollar amount on the features in question. For those of you who are curious, they are sliding to unlock universal search and auto correct.

Another point to be made for conjoint analysis is that there is a big difference between answering questions and conducting a survey that shows actual, real-world behavior. The results from the conjoint analysis were successful in convincing a court of law to agree to a $2 billion figure for Apple and that, in itself, is a victory.

Looking For the Competitive Edge?

Whether you are looking to launch a new product, needing real-world consumer behaviors or have been searching for s sophisticated yet simple platform that handles all your survey needs, a conjoint analysis project may be the answer to your questions. Want to see how conjoint can help you get that competitive edge you’ve been looking for? Click below to find out how it can work for you.


Popular posts from this blog

Results of the Presidential Job Index Survey (week ending 7/1/2010)

Quick update on the results for the presidential job index survey for the week ending 7/1/2011. As a reminder this is a weekly survey that we conduct and we publish the results for the survey every Friday. To participate in this week's survey, please download the SurveySwipe application and take the survey.

Remember, you get points that you can redeem for various rewards when you take our surveys. We have already distributed several paid apps like Angry Birds for free.


Almost 900 respondents took the survey.
52% vs 53% last week of the respondents approve of the job that President Obama is doing.
Respondents included 28% Democrats (31% last week), 25% Republicans (22% last week), 24% independents (27%) last week and 2% with the Green Party (3% last week).

You can view the reports here or directly on your phone.

Top 5 Infographics of the Week: Cyber Security

Earlier this week, we experienced a power outage with our data center at Internap. During this short period of time, our customers were unable to access the site. Luckily, it didn't last long and we are back up and running now thanks to our dedicated support team that responded quickly and worked diligently.

Cyber security is, and always has been, a very important issue for us as we continue to grow and meet the demands of a technology-driven society. Nothing is more paramount than the safety of your valuable data. And apparently we weren't the only ones affected, as LinkedIn was experiencing difficulties on the same day and Internap had 3 massive outages earlier this year. Check out these infographics with stats on the importance of cyber security and the impact it can have on small-medium sized businesses.

Top 5 Infographics of the Week: Internet of Things

In 2008, the number of things connected to the internet exceeded the number of people on Earth. By 2050, we are expected to surpass 50 million different devices connected to the internet. And we're not just talking smartphones and tablets - we mean everything. Wearable tech, household appliances, smart homes, public transportation, hospitals and even cattle have all been using sensors to transmit data automatically. It is an exciting yet scary time to be alive. The various interactions between these different entities are opening up doors for more apps, more software and more auxiliary services. With so many "things" connected online, the possibilities for information exchange becoming wider everyday. Check out the top 5 infographics to learn more about the IoT.