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New way to measure consumers’ judgments Paul E. Green and Yoram Wind

New way to measure consumers’ judgments Paul E. Green and Yoram Wind. Presented By: Yanqing Kong Khoa Nguyen Andrew Norris Sasisom Phetsri Huong Tu. Paul E. Green. Wharton School Professor of Marketing Expert in mathematics and statistics 12 years of Industry experience.

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New way to measure consumers’ judgments Paul E. Green and Yoram Wind

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  1. New way to measure consumers’ judgmentsPaul E. Green and Yoram Wind Presented By: Yanqing Kong KhoaNguyen Andrew Norris SasisomPhetsri HuongTu

  2. Paul E. Green • Wharton School Professor of Marketing • Expert in mathematics and statistics • 12 years of Industry experience

  3. Yoram Wind • Wharton School Professor of Marketing • Expert in buyer behavior and market research • Editorial Board Member: • Journal of Marketing • Journal of Business Research

  4. Introduction to Conjoint Measurement • Developed from: • Mathematical Psychology • Psychometrics • Definition-measurement to decompose evaluations into separate and compatible utility scales by which the original judgments can be reconstituted • For: Sorting relative importance of a product’s multiple attributes

  5. Conjoint Measurement • 5 Attributes in a Carpet Stain Remover • Design • Brand Name • Price • Seal • Guarantee

  6. Conjoint Measurement Example • Brand Name: • K2R • Glory • Bissell

  7. Example Cont.… • Price: • $1.19 • $1.39 • $1.59 • Seal: • Yes or No? • Guarantee: • Yes or No?

  8. Example Cont.… • Design: 3 • Name: 3 • Price: 3 • Seal: 2 • Guarantee: 2 • 3 × 3 × 3 × 2 × 2 = 108 • 18

  9. Utility

  10. Utility Cont.… • More tests= Better Accuracy • Package = 0.9 • Name= 0.3 • Price= 0.9 • Seal= 0.1 • Guarantee= 0.5

  11. Managerial Implications • Satisfy customers • Determine the optimal features product • Provide the best advertisement • Understand marketing strategy, product design

  12. Marketing Strategy Simulations • Apply to one product • Consumers’ evaluations & perceptions • Develop to all major products • Reactions of competitors • Compare to base-period configuration • Continue monitoring

  13. Limitations • Number of attributes is too large • Too new method • Not fit all products and services • Not all product can be decomposed

  14. Prospects • The flexibility • Understand consumers’ evaluations

  15. Factor Analysis Statistical method Consumers’ perceptions and preferences. Rating various brands and services IBM, XDR, NCR, CDC

  16. Perceptual Mapping • Diagrammatic technique • Consumers’ perceptions and preferences. • Similarities or distances • 11 automobiles

  17. Cluster analysis

  18. Relationship

  19. Discussion Questions • What is conjoint analysis? What are the common applications and limitations of conjoint analysis? How can we overcome them? • Why marketers should study multivariate analysis techniques? Define/elaborate various techniques we discussed in the class and explain how they help marketers make “informed decisions.”

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