Barter Markets for Conjoint Analysis

Min Ding (), Young-Hoon Park () and Eric T. Bradlow ()
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Min Ding: Smeal College of Business, Pennsylvania State University, University Park, Pennsylvania 16802
Young-Hoon Park: The Johnson School, Cornell University, Ithaca, New York 14853
Eric T. Bradlow: Marketing, Statistics, and Education, The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104

Management Science, 2009, vol. 55, issue 6, 1003-1017

Abstract: We propose a new alternative preference measurement method, barter conjoint, to contrast with traditional choice-based conjoint (CBC) approaches. Barter conjoint collects a substantially larger amount of data compared to CBC and allows for information diffusion among respondents. We conducted two empirical studies that compare CBC (with and without incentive alignment) and barter conjoint. The studies employed a total of three product categories, each with two validation tasks (one follows immediately and one conducted two weeks later). Our results confirmed prior research that incentive alignment, in general, substantially improves out-of-sample predictive performance of CBC. Furthermore, we found barter conjoint performs substantially better than the incentive-aligned CBC. However, in the spirit of "no free lunch," barter conjoint is more taxing (in various ways) than CBC, suggesting a potential trade-off between consumer resource allocation (at the time of the task) and (managerial) predictive accuracy downstream. Given that this is the first study on barter conjoint, we discuss various limitations of the current implementation and fruitful directions for future research.

Keywords: marketing; new products; design of experiments; utility preference; conjoint analysis; mechanism design (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (13)

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