CHAPTER TWENTY-NINE CHOICE-BASED CONJOINT ANALYSIS: REVEAL CUSTOMER PREFERENCES TO INCREASE PRODUCT-MARKET FIT
Garth V. Brown
The intellectual appeal for many professionals in New Product Development (NPD) is that the field is simultaneously art and science. Proficient Product Managers are comfortable being artists who envision innovative products and services for customers to buy and use. These professionals are also increasingly required to be comfortable with gathering and analyzing data that drives decisions. In other words, a new product manager is frequently an analytical role. In this role, awareness of the experimental and statistical tools used in measuring the utility and desirability of new products gives one an advantage in the market. For the professional already comfortable with the art of designing products and measuring sales performance, this chapter introduces you to experimental and statistical tools that provide deeper insights into the customers’ wants and needs long before the design of the product is complete. Collectively, these tools are called conjoint analysis (CA) and, in the right hands, can provide deep insight into customers’ desires for both physical products and services in almost any market.
29.1 What Is Conjoint Analysis (CA)?
Understanding conjoint analysis is helped by reviewing a commonly accepted economic principle. Consumers make purchasing ...
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