Authors
Dr. M Ajoy Kumar
Siddaganga Institute of Technology
Muralidhara A
JMP
Objective
Design and analyze discrete choice experiments (also called conjoint analysis) to discover which product or service attributes are preferred by potential customers.
Background
Lenzmart is a famous eyewear retail chain that has both an online and offline presence. Of the many products it designs and sells, reading glasses are very popular. There are multiple attributes for a pair of reading glasses, including the frame’s material, shape, color, weight, type and price. The levels of each of these attributes are displayed in Exhibit 1 (see PDF).
The Task
To customize and better position each product, the marketing team of Lenzmart performs the following tasks so that they can understand customer preferences:
- Create an effective and efficient design or set of profiles comprising varying product attributes for their experiment.
- After conducting the experiment, the team hopes to understand:
- -Which attribute is perceived of high value by their customers?
- -What is the relative importance of each attribute?
- -What is the optimized configuration?
- -How much are customers willing to pay if there is a change in attribute levels?