Optimal Product Configuration

(Actual vs. perceived buying behaviour)

  • Design will depend on understanding client decision needs (strategic options available to the client and competitors)
  • Design will also depend on accuracy sought:
    • Range of choice tasks and associated variability in attributes
    • Statistically generated
  • Quantification of relative importance of marketing mix variables
  • Based on decomposition of preference formation into impact of different factor
  • Application of experimental design techniques to vary predictor variables
  • Usually associated with many attributes with many levels
  • Usually attributes and levels are modelled at the aggregate level and then applied to products. We can model attributes at a lower level
  • Source of volume interactions can also be modelled at a brand level!