Applications for Product and Service Design and Product Line Decisions

Vithala R. Rao
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Vithala R. Rao: Cornell University

Chapter Chapter 6 in Applied Conjoint Analysis, 2014, pp 225-274 from Springer

Abstract: Abstract The methodology of conjoint analysis has been most frequently used to tackle the difficult marketing problem of product/service design and product line selection. The typical conjoint approach for these problems is to implement a conjoint study (as per the details discussed in Chaps. 2 and 3) and to use the results to estimate attribute partworths preferably at the individual respondent level. These partworths are then used to determine the values of attributes (or design characteristics of a product or service) so as to optimize an objective function for a firm. This process requires the knowledge of the competitive set in which the new product(s) or product lines will compete and product costs (as a function of the product attributes). Usually the firm’s objective is to maximize the long-run profit potential for the new product(s) or product lines based on stable market shares of the new product(s). If cost information is not available, the objective of long run sales is used (Table 6.1).

Keywords: Product Line; Market Share; Conjoint Analysis; Fractional Factorial Design; Line Extension (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-87753-0_6

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DOI: 10.1007/978-3-540-87753-0_6

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