Webinar: Menu-Based Conjoint: a new method

SKIM Webinar “Menu Based Conjoint: A New Method”

Menu-Based Conjoint: a new method

Stefan Ammerlaan

Research Consultant

RSS

Abigail Joffre

Today’s webinar host

#SKIMwebinar

Share your thoughts online:

Paolo Cordella

Research Consultant

RSS

http://www.twitter.com/skimgroup



• Who are we?

• Choice modeling •• Menu Based Choice (MBC)

• The Curly Fries Story

• Other markets

• So what?•• Questions?


SKIM

SKIM Webinar “Menu Based Conjoint: A New Method”SKIM Webinar “Menu Based Conjoint: A New Method”

SKIM is a rapidly growing agency that aims to be close to our clients and markets

4

San FranciscoNew York

London

GenevaRotterdam

= current offices

= future offices

= where we have conducted research


SKIM = Modeling of choice behavior


Choice modeling


Choice modeling

• Consumer

• What do I buy?

• Market research

• <- Translator ->

• Marketer

• What do I sell?


Choice modeling

• Consumer

• What do I buy?

• Market research


Why?

• Marketer

• What do I sell?


Conjoint


Conjoint

Attributes and levels

• Flavor • Paprika, Original


Conjoint



• Price• €0.80, €0.90, €1.00, €1.10, €1.20


Example: Crisps

€ 1.00

or

€ 1.00


Example: Crisps

€ 1.10

or

€ 0.80


Example: Crisps

€ 0.90

or

€ 1.20


Choice modeling

• Consumer

• What do I buy?

Paprika €1.10

• Market research


Conjoint

• Marketer

• What do I sell?

Paprika €1.10


Conjoint



• Price• €0.80, €0.90, €1.00, €1.10, €1.20


Conjoint


• Flavor • Paprika, Original, cheese onion, BBQ, hot and spicy, Tomato, etc etc

• Price• €0.80, €0.90, €1.00, €1.10, €1.20


Conjoint



• Price• €0.60, €0.70, €0.80, €0.90, €1.00, €1.10, €1.20, €1.30,


Conjoint



• Price• €0.60, €0.70, €0.80, €0.90, €1.00, €1.10, €1.20, €1.30,

• Brand• Lays, Croky, Smith, Pringles

• Size• 100gr, 200gr, 250gr, 300gr


Example: Crisps


Choice modeling

• Consumer

• What do I buy?

• Market research


• Marketer

• What do I sell?


Choice modeling

• Consumer

• What do I buy?

• Market research


CBC

• Marketer

• What do I sell?


Choice modeling

• Consumer

• What do I buy?

• Market research


ACBC

• Marketer

• What do I sell?


Choice modeling

• Consumer

• What do I buy?

• Market research


Maxdiff

• Marketer

• What do I sell?


Menu Based Choice (MBC)


Basic Digital TV - €25

Comfort Digital TV & Record - €32.50

Comfort ++ Digitale TV & Record &

Tablet - €37.50

HD TV - €4

Extra media box - €4

Led light media box - €1

95 Extra channels - €5

Movie Package - €8

Sport package €17

Your total price €32,50

Extra options: Extra channels

1

2 3

MBC - TV options


The Curly Fries Story


DavidSenior Product manager


...back in the 80s…


...back in the 80s…


...back in the 80s…...and in the 90s…


...and today…


PhilipJunior Product manager


Easy FriesHealthy, Young, Awesome


The battle



David or Philip?



The solution

JenniferMarket Researcher at MIKS


or

The question


or

The question


The method

MBCMenu Based Conjoint


1$ 3$ 1$ 1.5$

Make your choice


Make your choice

1$ 3$ 1$ 1.5$


Make your choice

1$ 3$ 1$ 1.5$1.5$



Make your choice

1$ 3$ 1$ 1.5$1.5$


0.8$

Make your choice

1$ 3$ 1.5$1.5$1$



Make your choice

1$ 3$ 0.8$ 1.5$1.5$


Make your choice

1$ 3$ 0.8$ 1.5$1.5$



0.8$

Make your choice

1$ 3$ 1.5$1.5$



Make your choice

1$ 3$ 1.5$1.5$


Insight #1# People choose Tender Grill with Curly Fries.



Insight #1# If Donald King delists Curly Fries….



Insight #1# …people will buy less Tender grill



Insight #2

# Curly Fries Lovers …



Insight #2# …they don’t come to Donald King anymore



So what?


So what?# Keep Curly Fries at $0.8

Revenue


What about me?


Can we still include Easy Fries?


Insight #3

# New segment, the “Green” families



Insight #3

# New segment, the “Green” families



Insight #4

# No cannibalization effects



Insight #4

# Two different segments



So what?


So what?# Launch Easy Fries at $1.5

Revenue


or

So what?


or

So what?


and

The solution


and

The solution

$0.8 $1.5


So what?



MBC: Other markets


MBC - Car options


Base price: €10,000

Driver comfort€ 440

Sport package

€ 760

Cabin Comfort Plus€ 265

Metallic paint € 450

Heated mirrors € 150

Alloy Wheels € 350

GPS navigator €150

GPS alarm € 320

MBC - Car optionsComfort Seat € 90

Parking sensors € 195

Rain sensor € 265

Air conditioning € 90

Audio system € 75

Heating seats € 165 Navigation Pack

€ 375

Total price €10,000



MBC - Car options


Comfort Seat € 90


Rain sensor € 265


Sport package

€ 760






GPS alarm € 320


Audio system € 75


€ 375



MBC - Car options


Comfort Seat € 90


Rain sensor € 265


Sport package

€ 760






GPS alarm € 320


Audio system € 75


€ 375



MBC - Car options


Comfort Seat € 90


Rain sensor € 265


Sport package

€ 760






GPS alarm € 320


Audio system € 75


€ 375



MBC - Car options


Comfort Seat € 90


Rain sensor € 265


Sport package

€ 760






GPS alarm € 320


Audio system € 75


€ 375



MBC - Car options


Comfort Seat € 90


Rain sensor € 265


Sport package

€ 760






GPS alarm € 320


Audio system € 75


€ 375



MBC - Car options


Comfort Seat € 90


Rain sensor € 265


Sport package

€ 650






GPS alarm € 320


Audio system € 75


€ 275



MBC - Car options


Comfort Seat € 90


Rain sensor € 265


Sport package

€ 660






GPS alarm € 320


Audio system € 75


€ 275


€500€400

MBC - Car options - So what?

Driver comfort

%

Price€450

Price Sensitivity Simulation

Driver comfort

Comfort Seat

Parking sensors

Rain sensor

€ 500

€ 90

€ 195

€ 265

18.5%

7.2%

11.3%

9.9%


€450

3.4%

€ 90

€ 195

€ 265

Driver comfort

Comfort Seat

Parking sensors

Rain sensor

€500€400

MBC - Car options - So what?

Driver comfort

%

Price€450

Price Sensitivity Simulation

11.3%

9.9%

25.3%18.5%

7.2%


MBC - TV options


Basis Digital TV - €25



Tablet - €37.50

HD TV - €4





Sport package €17



1

2 3

MBC - TV options


Basis Digital TV - €25



Tablet - €37.50

HD TV - €4





Sport package €17



1

2 3

MBC - TV options


MBC: where else?


So what?


Choice modeling

• Consumer

• What do I buy?

• Market research


• Marketer

• What do I sell?


Choice modeling

• Consumer

• What do I buy?

• Market research


MBC

• Marketer

• What do I sell?


Three times in three words

• Build Your Own

• Optimizing becomes harder

• Menu Based Choice



Go to www.skimgroup.com/webinars for today’s presentation slides and more!

Paolo [email protected]

+31 10 282 3568

Stefan [email protected]

+31 10 282 3552

Abigail [email protected]

+31 10 282 3514

@SKIMgroup

#SKIMwebinar

Share your thoughts online:

http://www.skimgroup.com/webinars

mailto:[email protected]



http://www.facebook.com/skimgroup


http://www.linkedin.com/company/skim

http://www.youtube.com/skimvideos



Education

Webinar: Menu-Based Conjoint: a new method