1. objectiveQUEST Inc. out-of-the-box solutions one rustling oaks road west tisbury, ma 02575 914-302-6123 alan@objectiveQUEST.net Conjoint Measurement as a Qualitative Tool solve develop build new ideas problems teams

2. outline Tool appropriateness Issues Information Objectives Approach Questions Next Steps 2

3. tool appropriateness Conjoint Measurement works as part of Focus Groups when we are at an early stage of development when we need to be flexible re: product or advertising elements Conjoint Measurement is appropriate when The specific attributes/parameters are known A variety of alternative levels of these attributes/parameters are understood Pricing issues are critical Brand equity is an important factor 3

4. issues We have a range of options that can be incorporated into “building” a product (colors, sizes, flavors, options, functionality, pricing) as a result… What are the attribute/feature trade-offs consumers make regarding their product/concept choices so that we can: “Construct” the product/concept to maximize consumer interest Develop a pricing strategy that maximizes value to both the seller and buyer and the Of the greatest utility is getting clear direction from our investigation that we can act on the resulting information 4

5. information objectives Define the relative level influence of the range of importance of product/concept attributes and features Define the optimal combination of attribute/feature levels Assess price/demand elasticity Assess the role of brand equity 5

6. approach Possible pre-Conjoint Measurement Focus Group Session Possible in-group or post Conjoint Measurement Analysis/Interpretation 6

7. approach – conjoint measurement Conjoint measurement, a design/analysis tool to aid in determining the hierarchy of importance of attributes/benefits, features The tool digs further to identify the impact of different “levels” of the attributes Rating/ranking of a specific combination of attributes (i.e., orthogonal array) Graphical analysis pinpoints next steps 7

8. approach – an example In a recent study we looked at the impact of 3 attributes Brand (3 different brands) Product configuration (4 different versions) Pricing (3 pricing levels) We asked respondents to evaluate a set of combinations of these attributes – an orthogonal array Evaluation based on purchase interest The results (see graphs on next two slides) shows the following Brand is by far the key determinate of consumer interest followed then by configuration and then price Our brand is in 2 nd place (out of the 3) – pointing to the primary priority to build brand credibility/equity 8

9. overall importance – brand is 1 st 9

10. Elasticity of demand Vs 10

11. approach – focus group discussion The qualitative module explores the underpinnings of consumer motivation including the attributes comprising our conjoint measurement In addition to “standard” discussion tools we use a variety of novel group dynamic approaches to aide our process Dynamic Mapping Photographic Imagery Projection Role Playing The combination of the conjoint measurement with the qualitative insights expands our learning allowing for a focused direction for next steps in the development process 11

12. faqs Does the conjoint module add cost to the focus groups? No, we never charge extra for special analyses Does the conjoint module add time to getting the final report? No, we conduct the analytics as the groups are conducted so we call all process the results as we move from session to session Is conjoint difficult to administer to respondents? No, respondents can quickly and easily handle 16 or so orthogonally derived combinations Is conjoint difficult to interpret and then use? No, in fact the ease of explaining conjoint results makes it an extremely useful strategic planning tool 12

13. next step Let’s talk! 13