SurveyAnalytics:Conjoint Analysis

Conjoint Analysis Software for Market Research

• Started in 2002 in Seattle, WA• #172 on Inc. 500 Fastest Growing Private Companies• #12 on Puget Sound Journal's Top 100 in Washington • Over 6K+ clients and growing!• QuestionPro, SurveyAnalytics, IdeaScale, Micropoll

Esther LaVielle - Senior Account Manager

Who is Survey Analytics?

AGENDA: 1. How to Put together a Conjoint Analysis Question

Wizard based interface to create Conjoint Tasks based on simply entering Features(Attributes) and Levels for each of the features.

2. Adding Conjoint Design ParametersTweak your design but choosing the number of tasks, number of profiles per task as well as "Not-

Applicable" option.

4. Preview Survey

3. Review Utility Calculation & Relative Importance

5. Market Segmentation ToolFilter the data based on criteria and then run Relative Importance calculations

6. Best Practice & Tips / Q&A

Why Choose Survey Analytics

over

Sawtooth Software?

Flexible monthly pricing available Most User-friendly Conjoint Tool Specialized in Discrete Choice Conjoint Analysis Offer Robust Survey/Reporting Capabilities Dedicated Account Manager during length of license

What Are You Using To Calculate Data? (1)SurveyAnalytics Implements Multinomial Logistic Regression for part worth calculations -Used in calculating average utility for each level (2) We use Orthogonal Profile Generation Any set of attributes will have a minimal set of profiles that can be generated to form a balanced design. Have greater confidence in the results you receive!

Set up a Discrete Choice Conjoint Analysis Study:1) Attributes/Feature: Define the attributes for your market segment. Speaker Study: Power, Frequency, Surround Sound, etc.

2) Levels: Define at least two levels for each of the attributes. Speaker Study: Surround Sound: Yes/No Power: 10hz, 20hz

3) Minimal Respondent Base: Try to figure out if your respondent base is homogeneous. Example: Do Males place a higher value for surround sound than females in buying speakers for the household?

4) Minimal Choice Count for statistical validity: Try to come up with a minimum number of times a Level should be shown to the respondents to make a statistically valid sampling. BEST PRACTICE: A Minimal Choice Count of 100 to 150 = good results. All attribute levels should be presented at least 100 to 150 times to make the results of the study statistically significant. Example: # of times Red,Blue Green color will show up within profile.

Set up a Discrete Choice Conjoint Analysis Study:Add Instructions and Features

Set up a Discrete Choice Conjoint Analysis Study:

Set Attributes /features for each Level


Set Concept Simulator- This can be used to determine what choices will be presented to the respondents when your survey is actually deployed.


Prohibited Pairs- You can create as many "Pairs" as you want and the Engine will never display two levels that have been marked as "Prohibited" in the same concept (as\ a product) for the user to choose


Prohibited Pairs- Determine Levels not to be paired togetherExample: Can't build 100w Speaker with 40hz frequency


Preview

Conjoint Analysis:Reviewing the Results

Results from Conjoint Study

Market Segmentation SimulatorUsing existing Data from Conjoint Analysis

Market Segmentation SimulatorGives you the ability to "predict" the market share of new products and concepts that may not exist today.

Ability to measure the "Gain" or "Loss" in market share based on changes to existing products in the given market.

Important steps in Conjoint Simulation:

1- Identifying and describing the different products or concepts that you want to investigate. We call these "Profiles".Example one of the profiles could be: Brand - Sony, Price - $600, Frequncy - 10hz, Surround Sound - Yes.

2- Find out all the existing products that are available in that market segment and simulate the market share of the products to establish a baseline.

3-Try out new services and ideas and see how the market share shifts based on new products and configurations.

Let's look how to set up a Simulator!

Setting Up Simulator:

1) Click on Online tools >>Name Simulator Profile>>change profiles

2)Click to see results . . . . .

Results: Simulator Output Defined

Vote Count: Total Response x Market Share Market Share: % of Profile 1 / All profiles in simulator based on % on relative importance and # of responses seen. The market simulator uses aggregate utility values to project the probability of choice and hence the market share

Now that we know how to use this . .

What can we askand find out with the Market Segmentation Simulator?

Market Segmentation Simulator

1) Keeping all features the same except surround sound (14.10% relative importance), what would be the relative difference in market share?

Answer: While there is a 87.11% market share for speakers with surround sound, 13% actually prefer speakers without it and pay same price.


2) Looking at subwoofer profile 1(utility 4.195): Standard, profile 2: Mini (utility 4.682), how might these two profiles differ in market share?

Answer: With estimated market share, we can analyze further potential forecast and profitability of different products.


3) What if we changed the price of profile 2 with the mini subwoofer to $800? How will the market share change?

Answer: Both Profile 1, 2 now have close to even market share when price is a factor. 48.97% would pay $100 more for Profile 2.

Best Practices

Tips for Successful Conjoint Analysis Studies

You must use qualitative research first!What are the top attributes? What range? What language?

A focus group or surveys with open-ended questions will help define your top attributes needed for your study

Best Practices & Tips

You need some numbers to get good statistics

Target a minimum of 100 completes

* 200-300 is standard

This # will depend on your target market


Keep the options clear and simple as possibleNo more than 10-12 trade-off exercises (5-7 standard)No more than 5-6 attributesKeep the ranges simple You can ask more intimate questions of current customers than potential customers, but don’t let that stop you from trying!Follow general good online survey techniques Test your surveyMake it clear responses keep strictly confidentialKeep survey results to 15-20 minutesProvide incentives


Pricing for SurveyAnalytics Conjoint Analysis

SurveyAnalytics offers pricing on a monthly or yearly basisUnlimited Conjoint Projects + Dedicated Account Manager + additional Survey & Analytics ToolsCost per Month: $1,000/Mo per user limited time discount

Yearly License : $12,000/yr per userBilled via credit card only

Conclusion and Question & Answer Session

Esther LaVielleSurveyAnalytics http://[email protected]

Dorian SimpsonPlanning Innovationshttp://www.planninginnovations.com [email protected]

Documents

SurveyAnalytics:Conjoint Analysis