21.8 Conjoint Analysis and Augmented Conjoint Analysis

More technical on 27.1

Jedidi and Zhang (2002)

• Augmenting Conjoint Analysis to Estimate Consumer Reservation Price

• Using conjoint analysis (coefficients) to derive at consumers’ reservation prices for a product in a category.

• Can be applied in the context of

  • product introduction

  • calculating customer switching effect

  • the cannibalization effect

  • the market expansion effect

$$Utility(Rating) = \alpha + \beta_i Attribute_i$$

where $\alpha$

Netzer and Srinivasan (2011)

• Break conjoint analysis down to a sequence of constant-sum paired comparison questions.

• Can also calculate the standard errors for each attribute importance.

References

Jedidi, Kamel, and Z. John Zhang. 2002. “Augmenting Conjoint Analysis to Estimate Consumer Reservation Price.” Management Science 48 (10): 1350–68. https://doi.org/10.1287/mnsc.48.10.1350.272.

Netzer, Oded, and V. Srinivasan. 2011. “Adaptive Self-Explication of Multiattribute Preferences.” Journal of Marketing Research 48 (1): 140–56. https://doi.org/10.1509/jmkr.48.1.140.