Technical Papers

Title: Introduction to Market Simulators for Conjoint Analysis

Description:

The Market Simulator is usually considered the most important tool resulting from a conjoint project. The simulator is used to convert raw conjoint (part-worth utility) data into something much more managerially useful: simulated market choices. Products can be introduced within a simulated market scenario and the simulator reports the percent of respondents projected to choose each. A market simulator lets an analyst or manager conduct what-if games to investigate issues such as new product design, product positioning, and pricing strategy.

This paper covers the topic from an intuitive and strategic standpoint. It explains why interpreting average part worths or importances falls short, and the additional benefits of conducting appropriate simulations. Three common strategic questions that simulators can respond to are listed, and examples are provided using hypothetical data. The examples include new product introduction, repositioning existing products, price sensitivity measurement, and line extensions.

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Applied methodologies

Technical papers

#02

Marketing Manager at a top 50 Pharmaceutical company, New York, USA

#02 This is the best ever information that I can provide to my communication agency. Spot on, correct in the context, to the point and actionnable"