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Using Share Predictions from Conjoint and Discrete Choice Models

When business decision-makers look at conjoint and discrete choice model output, how should the share results be interpreted and used?  In this post, we share our thoughts about preference share and market share, based on decades of practical experience. 

If you used a conjoint-based (or discrete choice) simulation model and saw the following output:

you might assume the figures represent market shares.  But, the output of a conjoint simulation model is known as a “share of preference.” 

MaxDiff: A New Way to Prioritize Benefit Statements

MaxDiff is a great methodology for prioritizing benefit statements.  You’ll learn which statements resonate most with your market.

The MaxDiff technique identifies the best of many alternatives.  While MaxDiff fits easily with concepts, product features, packaging, and branding options, our focus here is on using MaxDiff to prioritize benefit statements. 

You want to reach your audience with a powerful message of what your product or service delivers.  MaxDiff can help.  MaxDiff provides

Aligning Your Line: Using Conjoint to Manage Product Lines

It is common to think about using conjoint / discrete choice to configure products and test pricing, but it also extremely useful for finding opportunities to shrink product lines, testing whether additional products cannibalize or add to preference, and uncovering segments and aligning products with their preferences.

Imagine this scenario:  A customer is looking at a huge array of service choices and wondering, “Why are there so many?”  And, perhaps, she just walks away thinking the

Predicting Revenue from Conjoint Results

Conjoint analysis is a powerful tool for predicting market reaction to changes in existing products or services or completely new products. But how well do conjoint model results translate into real world results? And can you predict revenue from conjoint results?

The input to a competitive conjoint model is the specifications for the current products/services in the market. The output is “shares of preference.” Shares of preference represent the predicted shares for the products in the

Comparing Apples and Oranges

Discrete choice lets you understand how your market makes relevant apples to oranges comparisons.

It’s like comparing apples and oranges. ‘Nuff said, right?  Social norms seem to dictate that as soon as that statement is made all discussion must come to a complete halt.

I’m looking over my shoulder as I’m typing this in case the social norm police are around, but, what if you can compare apples and oranges?  In fact (looking over my shoulder again), I know that you can.  Or, at least you