MMR Strategy Group

Select the optimal mix of features and prices for products and concepts.

MMR’s Conjoint and Discrete Choice methodologies are powerful tools that help clients develop the optimal mix of features and prices for products and concepts.

These methods help managers decide which features to include in a product or service, or how much of a given feature to include. For example, product development for a vacuum might need to trade off power, weight, and price, while product development for an insurance product might trade off non-tangible attributes such as different types of coverage.

Conjoint and discrete choice studies provide a common measuring system that allows managers to compare different types of features, different levels of features, or even different price points.  These studies are based in methodologies that present respondents with different bundles or combinations of features, and ask the respondents to indicate their preference for each bundle.  Depending on the specific methodology used, respondents may be asked to indicate which features they prefer, their likelihood to purchase those features, and the price they might pay.

Because these studies are used by managers across the organization, MMR organizes the results in concise, user-friendly documents that use a minimum of jargon.  We prefer discrete choice methods that are not only reliable, but also provide easily-understood, user-friendly output.

Our experience includes traditional conjoint techniques as well as Maximum Difference or MaxDiff techniques.  We can combine these techniques with methods such as TURF, that measure the reach of different combinations of features, or Latent Class Analysis, which segments consumers according to their interest in different types of features.  We can even predict the market share that a new product is likely to gain after rollout.  All these outputs can be combined in a market simulation analysis that allows the client to compare different combinations of product features, prices, and other elements.

MMR’s experience with conjoint and discrete choice includes a wide variety of industry and products, including applications such as advertising messaging, product design, brand equity evaluation, pricing, competitive analysis, and market segmentation.

Contact MMR to learn more.