What scientists want and what they are willing to pay for are often two different things. Scientists make feature/price trade-offs to determine which product configuration will meet their needs. If your product—even if it’s of superior quality—fails to meet a customer’s value requirement, it will likely not be selected among other products.
To analyze Product Feature/Price Tradeoffs, BioInformatics uses Conjoint Analysis, a powerful, statistical technique for incorporating structured customer preferences into the design of new products.
- Ranks importance of each product feature
- Compares product feature configurations against one another
- Identifies trade-offs that scientists are willing to make based on price
- Pinpoints best overall product configuration
Case Study: Specifications for a New Instrument
A client with a new instrument in the final stages of production came to BioInformatics to determine the most preferred attributes desired by end-users. The client was concerned about which bundle of features would be considered most valuable and what price customers would be willing to pay for enhanced technologies. We proposed a conjoint analysis featuring 16 possible product configurations, based on the number of product features the client wanted to include. Each was evaluated by potential end-users of the new instrument. Based on the study, the client’s marketing and R&D team discovered the most attractive product configuration that would maximize sales based on end-user preferences.
Uncovering Feature Importance and Best Overall Instrument Design
Conjoint Analysis asks the respondent to make choices in the same fashion as the consumer presumably does—by trading off features, one against another. Researchers indicate their purchase likelihood of several product configurations as designed by the Conjoint Analysis software. Respondents provide their likelihood to purchase each configuration via an online evaluation, by viewing one product configuration at a time.