New Product Selection
Conjoint Analysis | Case #2: New Product Selection
A leading foreign financial institution sought to capitalize on its high-value client base by offering additional products and services.
Sawtooth Technologies researched a variety of new products to determine which were most likely to succeed and which matched the client’s image/positioning.
1. Conducted brainstorming sessions and focus groups to develop a lengthy list of possible new products.
2. Narrowed the list to those that best capitalized on the infrastructure and image.
3. Employed a computer-based interview to allow consumers to indicate the products/services of greatest interest; used a conjoint module to test the value of various features of the new products; asked consumers to indicate their likelihood of trying the new products/services as described by attributes and levels.
4. Built a model to predict the likelihood of trial of each new product or service under a wide variety of configurations.
As we varied the levels offered, we could assess and compare the desirability of the product. We could also determine which segments of the population found each product most desirable. This information enabled the client to introduce products/services based on their appeal to highly profitable customer segments to deepen customer loyalty.
A new set of products and services was selected based on market needs and values.
The institution selected new products and services for introduction that deepened their relationship with highly valued customers, increasing overall profitability. The research and market modeling eliminated guesswork and allowed the institution to move quickly from brainstorming to a successful launch of new offerings.