Conjoint analysis case studies
Conjoint analysis is an area of expertise for dobney.com. This includes all forms of conjoint analysis and versions of analysis that we carry out using our own in-house tools.
This section contains a selection of case studies. Rather than reveal the clients, some of whom would be happy for us to say who they are and others who would prefer confidentiality, we have decided not to reveal any names.
Margin versus service
In business markets, intermediary resellers, dealers and distributors all take a margin from selling the product to the end-user. In the face of downwards pressure on prices for products being sold to consumers, the question was whether providing additional business services could enable the business to trim the channel margin. Conjoint analysis was used to test the value of different services against margin in terms of likelihood to recommend, providing the business with a tool to understand both what services were needed, but also the potential margin saving they could make.
Healthcare treatments
In healthcare markets, all treatments and medecines bring with them a measure of relief, but also side-effects and procedural complications. To understand the market for a new treatment, conjoint analysis was conducted with sufferers via an online panel. This enabled the healthcare provider to identify the trade-offs in time, money and inconvenience against procedural efficacy to help to take decisions about which areas and businesses to invest in.
Product design
Product design is the classic conjoint problem. What mix of features should go into a new product at what price, so the value in monetary terms could be established for each of the features and likely profitability assessed. The conjoint was complicated by being in a business market with high levels of both repeat and repertoire purchasing (buying more than one type of product at a time because of multiple needs). Using our proprietary conjoint software we were able to show the value and potential profitability of the different features which could be used as a purchasing tool to focus on supply chain and build costs.
Delivery services
With the advent of the Internet, public use and perceptions of delivery services has changed. A retailer wanted to know how it's delivery service was comparing with new Internet entrants and whether there was potential for additional premium level deliveries, such as same day delivery. Using a combined telephone, postal choice based conjoint approach price elasticities and service value could be assessed to understand different types of retail customer.
Motoring services
A leading motor service company wanted to understand how it could encourage more people to make more regular use of its breakdown and warranty services. Using conjoint analysis we were able to identify the value of different elements of the breakdown service and establish prices that customers would be willing to pay. The effect was an overhaul of the service design and a rethink on pricing.
For help and advice on carrying out conjoint analysis projects contact info@dobney.com