Business Danmark needed a research partner with extensive business understanding in order to explore scenarios for optimal price and product combinations.Read more
Conjoint for price and product optimization
In a modern world where complex customer journeys have made customers more well-informed than ever before, you need tools that can help you answer the following questions:
- What is the optimal price and what is the expected profit?
- Which product combinations have the greatest market potential?
- How should we react to our competitors launching a new product?
The use of conjoint analysis
A conjoint analysis is especially useful in situations where customers make well-informed decisions. If you have an engaged customer base who has checked the marked prior to contacting you, the conjoint analysis is an important tool to help you choose the right price and product combinations.
The procedure is, in all its simplicity, as follows:
- Set up different price and product combinations and force the respondent to choose
- Calculate the statistical value of each quality
- Simulate the market’s reaction to other alternatives
While this sounds simple, there are a lot of considerations in relation to the number of qualities and respondents. The more options there are in your product line, the more respondents you need.
We ensure that you get a statistically calculated data foundation that enables you to use these data to simulate future market situations.