Products tailored precisely to the customer's needs have the best chance of selling! But which product features does the customer view as offering the greatest benefit? And which product, with which features, offers the optimal price/profitability ratio? To what extent does the brand influence sales?
The answers to all of these questions steer important decisions in relation to the development of a new product or service. By determining specific customer requirements, conjoint analysis help to align products, product concepts and even services as closely as possible to market and customer needs. In a product design context, the conjoint analysis provides the following information or answers the following questions:
- Which product features represent the highest proportional benefit for the potential buyer, which features are ranked lowest?
- Which product configuration offers the highest overall benefit and therefore the best expected sales potential?
- Which combination of features creates the ideal profitability structure?
- How will the new product concept be positioned in the market in terms of sales and market share (market simulation)?
- What price are customers prepared to pay for different configurations?
- How sensitive are customers to price changes (price sensitivity/elasticity)?
All of these factors play a critical role in the development of a new product or service. From the inspiration for a new product through to its market launch, the answers to a whole series of questions will play a decisive role in a product's success.