• Title/Summary/Keyword: Conjoint Choice Model

Search Result 37, Processing Time 0.032 seconds

Conjoint-like Analysis Using Elimination-by-Aspects Model (EBA 모형을 활용한 유사 컨조인트 분석)

  • Park, Sang-Jun
    • Korean Management Science Review
    • /
    • v.25 no.1
    • /
    • pp.139-147
    • /
    • 2008
  • Conjoint Analysis is marketers' favorite methodology for finding out how buyers make trade-offs among competing products and suppliers. Thousands of applications of conjoint analysis have been carried out over the past three decades. The conjoint analysis has been so popular as a management decision tool due to the availability of a choice simulator. A conjoint simulator enables managers to perform 'what if' question accompanying the output of a conjoint study. Traditionally the First Choice Model (FCM) has been widely used as a choice simulator. The FCM is simple to do, easy to understand. In the FCM, the probability of an alternative is zero until its value is greater than others in the set. Once its value exceeds that threshold, however, it receives 100%. The LOGIT simulation model, which is also called as "Share of Preference", has been used commonly as an alternative of the FCM. In the model part worth utilities aren't required to be positive. Besides, it doesn't require part worth utilities computed under LOGIT model. The simulator can be used based on regression, monotone regression, linear programming, and so on. However, it is not free from the Independent from Irrelevant Alternatives (IIA) problem. This paper proposes the EBA (Elimination-By-Aspects) model as a useful conjoint-like method. One advantage of the EBA model is that it models choice in terms of the actual psychological processes that might be taking place. According to EBA, when choosing from choice objects, a person chooses one of the aspects that are effective for the objects and eliminates all objects which do not have this aspect. This process continues until only one alternative remains.

A Study on the Theme Park Users' Choice behavior -Application of Constraints-Induced Conjoint Choice Model- (주제공원 이용자들의 선택행동 연구 -Constraints-Induced Conjoint Choice Model의 적용-)

  • 홍성권;이용훈
    • Journal of the Korean Institute of Landscape Architecture
    • /
    • v.28 no.2
    • /
    • pp.18-27
    • /
    • 2000
  • The importance of constraints has been one of major issues in recreation for prediction of choice behavior; however, traditional conjoint choice model did not consider the effects of these variables or fail to integrate them into choice model adequately. The purposes of this research are (a) to estimate the effects of constraints in theme park choice behavior by the constraints-induced conjoint choice model, and (b) to test additional explanatory power of the additional constraints in this suggested model against the more parsimonious traditional model. A leading polling agency was employed to select respondents. Both alternative generating and choice set generating fractional factorial design were conducted to meet the necessary and sufficient conditions for calibration of the constraints-induced conjoint choice model. Th alternative-specific model was calibrated. The log-likelihood ratio test revealed that suggested model was accepted in the favor of the traditional model, and the goodness-of-fit($\rho$$^2$) of suggested and traditional model was 0.48427 and 0.47950, respectively. There was no difference between traditional and suggested model in estimates of attribute levels of car and shuttle bus because alternatives were created to estimate the effects of constraints independently from mode related variables. Most parameters values of constraints had the expected sign and magnitude: the results reflected the characteristics of the theme parks, such as abundance of natural attractions and poor accessibility in Everland, location of major fun rides indoor in Lotte World, city park like characteristics of Dream Land, and traffic jams in Seoul. Instead of the multinomial logit model, the nested logit model is recommended for future researches because this model more reasonably reflects the real decision-making process in park choice. Development of new methodology too integrate this hierarchical decision-making into choice model is anticipated.

  • PDF

A Study on the Theme Park Users's Choice behavior: Application of Conjoint Choice Model (Conjoint Choice Model을 이용한 주제공원 이용자들의 선택행동 연구)

  • 홍성권
    • Journal of the Korean Institute of Landscape Architecture
    • /
    • v.28 no.1
    • /
    • pp.19-28
    • /
    • 2000
  • The purposes of this study are two folds: a) to introduce conjoint choice model to research the choice behavior of theme park users, and b) to suggest the strategies to strengthen the competitiveness of theme parks. The major four theme parks in Seoul metropolitan areas were selected as study areas. A leading polling agency was employed to select 432 respondents by probability sampling and to conduct face-to-face interview. Both alternative generating and choice set generating fractional factorial design were conducted simultaneously to meet the necessary and sufficient conditions for calibration of the conjoint choice model. Dummy coding was used to represent the attribute levels, and the alternative-specific model was calibrated. The goodness-of-fit of the model was quite satisfactory($\rho$$^2$=0.47950), and most parameters values had to expected sign and magnitude. Car was preferred transport mode to shuttle bus for visiting theme parks ; however the most ideal attribute levels only were estimated significantly. Most attribute levels of shuttle bus were estimated significantly except the Dream Land, which is the least attractive park among study areas. Simulation results showed that the shuttle bus was a mode worth providing to switch the current car dominant visiting pattern of theme parks, which will be one the effective strategies to attract more patrons, especially for potential users adjacent to parks. Several ideals were suggested for future researches, in terms of utilization of more general utility function and new base alternative, and inclusion of more salient attributes such as constraints in the model.

  • PDF

A Study on the Comparison of the Predictability among Traditional and Choice-based Conjoint Analyses in the Choice of Service Products (서비스제품 선택에서 전통적 컨조인트기법과 선택형 컨조인트기법간의 예측력 비교에 대한 연구)

  • Lim, Byung-Hoom;Ahn, Kwang-Ho;Park, Uhn-Yong
    • Journal of Global Scholars of Marketing Science
    • /
    • v.16 no.4
    • /
    • pp.39-54
    • /
    • 2006
  • Marketing managers hope to maximize the success rate of new products by satisfying various needs of consumers. For this, an analysis called 'conjoint analysis' has been frequently applied in the process of new product development. This study was performed to compare the predictability of diverse conjoint analyses in choice of general hospitals. The comparison was performed among four models of traditional conjoint analysis and choice-based conjoint analysis. Results show that the hybrid conjoint analysis, which combined the traditional conjoint analysis and the choice-based conjoint model showed the highest predictive accuracy. Still two models show similar estimates of utility.

  • PDF

Consumer Choice Model in No-frills Airline Industry

  • Ha, Hong Youl
    • Asia-Pacific Journal of Business
    • /
    • v.1 no.2
    • /
    • pp.23-46
    • /
    • 2010
  • Despite the explosive growth of no-frill airline industry, very little is known about how consumers make purchase decision in such settings. Today's airline industry requires choice models consistent with consumers' true preference sets. This study used conjoint analysis to identify these ideal choice models. 38 percent of the subjects were found to use compensatory and 62 percent non-compensatory models. Our findings suggest a need to base choice-making promotions on ideal choice models if the promotion is to lead consumers to decisions consistent with true preferences.

  • PDF

Forecasting the Evolution of Innovation Considering Consumers' Choice : An Application of Home-Networking Market in Korea (소비자 선택을 고려한 신기술 혁신의 확산 예측: 한국의 홈네트워킹 시장을 대상으로)

  • Lee, Cheol-Yong;Lee, Jeong-Dong;Kim, Yeon-Bae
    • Journal of Technology Innovation
    • /
    • v.13 no.1
    • /
    • pp.1-24
    • /
    • 2005
  • This paper applies a prelaunch forecasting model to the Home-Networking (HN) market of South Korea. The HN market of Korea is categorized into two distinctive markets. One HN market consists of new apartments in which builders install HN and the other HN market consists of existing houses in which residents purchase HN Among these markets, this paper focuses on existing houses as capturing consumers' choice. To forecast sales of HN for existing houses, we use a conjoint model based on our survey data of consumer preferences. By incorporating various indicators of HN technologies into our conjoint model, we also forecast diffusion of HN system embodied in PLC or Wireless Lan. We call this model Choice-Based Diffusion Model. In addition, based on the simulation experiments, we also identify important factors that affect the demands of HN system.

  • PDF

Analysis on the business strategy and policy for the alternative fuel vehicle : Using stated preference data (대체연료 자동차에 대한 소비자 선호 분석을 통한 산업전략과 기술정책에 관한 연구)

  • 김연배;정기철;안지운;이정동
    • Proceedings of the Technology Innovation Conference
    • /
    • 2006.02a
    • /
    • pp.264-297
    • /
    • 2006
  • In this paper, we attempt to analyze consumer preference for the alternative-fuel vehicles based on data from a stated preference using the conjoint analysis. Five possible fuel types (gasoline, diesel, CNG, LPG, Hybrid (electricity+gasoline)) are covered in conjoint cards. To estimate and analyze consumer preference, discrete choice model is used. Specifically, Bayesian mixed logit model is used. Based on estimating results, we discuss the business strategy and policy for the alternative fuel vehicle.

  • PDF

A Study on Product Positioning based on Conjoint Analysis in a Competitive Market (경쟁시장에서 컨조인트분석에 기초한 제품포지셔닝에 대한 연구 : 온라인 게임을 중심으로)

  • Baek Seung-Kee;Rhim Ho-Sun;Park Myung-Sub
    • Journal of the Korean Operations Research and Management Science Society
    • /
    • v.31 no.3
    • /
    • pp.107-125
    • /
    • 2006
  • We introduce a two-stage game theoretic model to support decision making processes for product Positioning and pricing in competitive environment. In the first stage, firms decide on entry and product position, in the second stage, firms compete with price. 'Alpha rule' is used as a choice model. Demand parameters of the choice model are estimated by conjoint analysis. We investigate conditions for the existence of Nash price equilibria in the pricing game. Nash equilibria in the entry and positioning game are produced using a concept of stable sets. An example of the online game industry in Korea is examined.

A Study of Smartphone Sustainable Business in the Chinese Market through Conjoint Analysis

  • Junyan YANG;Jun ZHANG
    • The Journal of Industrial Distribution & Business
    • /
    • v.15 no.3
    • /
    • pp.11-20
    • /
    • 2024
  • Purpose: This study focuses on the Chinese smartphone market to estimate product attributes influencing Chinese customers' preference for developing new smartphones through conjoint analysis. Research design, data and methodology: The online questionnaire survey is processed among Chinese potential smartphone customers. Conjoint analysis including traditional conjoint analysis (TCA) and choice-based conjoint analysis (CBCA), is used to analyze the useful data of 500. Results: Results indicate that price is the most important predictor while screen size is the least for Chinese customers' preference whether the method is TCA or CBCA. However, the importance of brand, capacity, CPU, and screen design is different. Moreover, based on each smartphone attribute level's utility, the new products with the best combinations are different compared with both methods. Finally, the predicted market shares of the top 3 products are the same with maximum utility rule model between TCA and CBCA. However, when considering with the new best combined product, they are significantly different. Conclusions: Managers should recognize the differences between TCA and CBCA and select the best method to develop new smartphones for sustainable business in the Chinese competitive market based on the important attributes of price, brand, capacity, CPU, screen design, and size.

Using Choice-Based Conjoint Analysis to Determine Smartphone Choice - a Student's Perspective

  • Baganzi, Ronald;Shin, Geon-Cheol;Wu, Shali
    • Journal of Information Technology Applications and Management
    • /
    • v.24 no.4
    • /
    • pp.93-115
    • /
    • 2017
  • The ability of smartphones to facilitate various services like mobile banking, e-commerce and mobile payments has made them part of consumers' lives. Conjoint analysis (CA) is a marketing research approach used to assess how consumers' preferences for products or services develop. The potential applications of CA are numerous in consumer electronics, banking and insurance services, job selection and workplace loyalty, consumer packaged goods, and travel and tourism. Choice-Based Conjoint (CBC) analysis is the most commonly used CA approach in marketing research. The purpose of this study is to utilise CBC analysis to investigate the relative importance of smartphone attributes that influence consumer smartphone preference. An experiment was designed using Sawtooth CBC Software. 326 students attempted the online survey. Utility values were derived by Hierarchical Bayes (HB) estimation and used to explain consumers' smartphone preferences. All the six attributes used for the study were found to significantly influence smartphone preference. Smartphone brand was the most important, followed by the price, camera, RAM, battery life, and storage. This study is one of the first to use Sawtooth CBC analysis to assess consumer smartphone preference based on the six attributes. We provide implications for the development of new smartphones based on attributes.