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Webinar Tutorial - A Beginners Guide to MaxDiff Scaling

Webinar Tutorial - A Beginners Guide To MaxDiff Scaling

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Webinar Tutorial - A Beginners Guide to MaxDiff Scaling

Paul-Richard McCullough Dan Fleetwood

President, QuestionPro CommunitiesPresident, MACRO Consulting, Inc.

Agenda

01 Questions MaxDiff Can Answer

02 Why use MaxDiff

03 What is MaxDiff

04 An Extension to MaxDiff

05 Summary

Questions MaxDiff Can Answer

● What Features Do Consumers Want Most?

● How Satisfied Are My Customers?

● What Are My Customer Attitudes?

● How Do My Customers Feel About My Brand?

TECHNIQUE MAXDIFF

Why use MaxDiff ?

● Rating Scales

● Each brand is rated independently on each statement in an image battery, eg, 5 point rating scale.

TECHNIQUE MAXDIFF

Current Approach - Ratings Scales Batteries

Why use MaxDiff ? TECHNIQUE MAXDIFF

Current Approach - Ratings Scales Batteries

Rating Scales Batteries

Uses

Attitudes ImportanceLifestyles Brand ImageryPsychographics Brand PreferenceSatisfaction

SegmentationBrand PositioningUsage and AttitudesCustomer SatisfactionMessagingAdvertising ResearchNew Product Research

Anywhere you can use rating scale batteries,

MaxDiff can be used instead

Why use MaxDiff ? TECHNIQUE MAXDIFF

Because Rating Scales Are Inefficient

Rating ScalesResulting data are typically non-discriminating and highly correlated.

Rating scales batteries have very little information content

● Flat Responses Across Statements● Flat Responses Across Brands● Scale Usage Bias (Segmentation)● Brand Halo (Brand Imagery)

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Why use MaxDiff ? TECHNIQUE MAXDIFF

Marketing Problem: Which Flavors of Ice Cream Should I Sell?● Background:

- 30 Potential Flavors

- Only room for 10 in retail freezer space

● Goal: Maximize Customer Satisfaction

● Method:

- Create 18 random (not really) sets of 5 flavors each

- Conduct MaxDiff exercise online using QuestionPro

- Using hierarchical Bayes (or Latent Class) Logistic Regression,

- Estimate flavor preference for each respondent for each flavor

● Analysis: TURF, etc.

What is MaxDiff ? TECHNIQUE MAXDIFF

Example: Classic MaxDiff

● MaxDiff consists of multiple “tasks”● Each task has 3-5 items● Respondent item ratings are generated

using advanced regression● For 30 items, 18 tasks of 5 items each might

be designed

What is MaxDiff ? TECHNIQUE MAXDIFF

Example: Brand -Anchored MaxDiff

An Extension to MaxDiff:Brand-Anchored MaxDiff

with Dual Response

-- NEW APPROACH -- TECHNIQUE MAXDIFF

Example: Brand -Anchored MaxDiff

Dual Response MaxDiff allows for a zero point in MaxDiff utilities,

making comparisons across studies (and brands) feasible.

-- NEW APPROACH -- TECHNIQUE MAXDIFF

Modified Brand-Anchored MaxDiff

Max/Diff takes longer than ratings scales. Modified brand-anchored MaxDiffhopes to decrease the interview time of the Max/Diff Tasks.

-- NEW APPROACH -- One Last Wrinkle TECHNIQUE MAXDIFF

Modified Brand-Anchored MaxDiff

Animated Modified Brand-Anchored MaxDiff is a more efficient data collection method than

traditional Max/Diff.

-- Case Study -- TECHNIQUE MAXDIFF

Research Objectives

Compare two approaches to brand imagery measurement, ratings scales and maxdiff, in terms of:

● Inter-brand discrimination● Inter-item discrimination● Predictive validity

-- Case Study -- TECHNIQUE MAXDIFF

Research Methodology

Online Survey:

● Two cells- Rating Scales (n=436)- Max/Diff (n=2,605)

● Three brands● 12 items● Questionnaire:

- Brand image measurement- Three dependent variables

* Item top 3 rank-order* Brand purchase likelihood* Brand forced-choice preference

- Demographics

What is MaxDiff ? TECHNIQUE MAXDIFF

MaxDiff Yields More Information Than Rating Scales

Rating Scales MaxDiff*

*Note: the form of MaxDiff used to generate this line chart is slightly more advanced than traditional MaxDiff

TECHNIQUE MAXDIFFSummary

● Max/Diff is generally superior to rating scales in virtually every measurable way:

− Better inter-item discrimination

− Better predictive validity

− Elimination of brand halo

− Elimination of scale usage bias

− Fewer invalid completes

Note: Max/Diff can take longer to complete than ratings scales

And cannot accommodate as many items as ratings scales.

Thank YouContact Information For more info, please contact us at

Paul-Richard [email protected]

Dan [email protected]

@questionpro