Price models and market models
A key benefit of surveys that involve trade-offs such as conjoint analysis, Brand price trade-off research and pricing research is the ability to create dynamic market models to explore the economic impact of pricing research.
Benefits of market models
In most market research, information is presented in the form of a static display of statistics and charts. For those who first come to trade-off research, the ability to model, that is to represent the decision making of the market under different scenarios, and to see what the likely impact of decisions would be, and then to be able to change the model and see what changes is an extremely strong benefit. Not sure what pack sizes to offer and how to price across different pack sizes? Then a dynamic model allows different business decisions to be evaluated using real information about customers preferences.
Example Conjoint model
Conjoint analysis is the most sophisticated means of estimating demand for products and services with differing prices and features. There are many flavours of conjoint analysis, but all conjoint analysis leads to a market model where prices and features can be varied and so the impact of product or price changes can be assessed to understand different business options prior to going to market.
Our demonstration conjoint analysis model allows different product values to be selected and then their impact calculated on market preference. The normal use of these types of model is to understand the potential ROI on different features or projects and to see what would be optimised market positioning, or optimised return to the business.
Example Brand Price Trade-Offs (BPTO) model
In Brand Price Trade-Off studies, customers choose from a range of brands or product variants at different prices. The prices are varied systematically to understand how people would change their decision making where products are priced differently and so how they change their decision making when the favourite product is not available.
For a demonstration we have a downloadable demonstration of what a BPTO market model looks like. The demonstration model is created in Visual Basic and runs as a .exe file. You will need to unzip the whole directory to run the demonstration as it will not run straight from the zip file.
Download the BPTO model (85KB) (Windows only)
For help and advice on carrying out and custom designed Conjoint Analysis, BPTO or brand equity measurement contact info@dobney.com