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.
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