What Product Benefits To Offer to Whom: An Application of Conjoint Segmentation

by Saul Sands, Kenneth Warwick

Fall 1981

Volume 24
Issue 1

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The article presents a case of the use of conjoint segmentation by a radio company for selecting the best concepts and defining market segments for product designing. The company has the option of testing the concept among potential buyers. The market's reaction to the concepts will help the company marketer select the right one, which would then enter development. In concept testing, the respondent is usually queried about a written description of the product concept. Information from respondents includes percentage of potential buyers preferring each concept. First, company marketers work up a set of product concepts that share in the same attributes but differ in attribute levels. Next, a multistage area sample was taken consisting of six hundred men and women between the ages of eighteen and fifty-five. Descriptions of the sixteen concepts were placed on cards and the respondents were asked to rank them from most to least preferred. A conjoint analysis computer model was used to analyze the dynamics of preference among the sixteen options.

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