...Faculty of Business and Economics A comparison of two-stage segmentation methods for choice-based conjoint data: a simulation study Marjolein Crabbe, Bradley Jones and Martina Vandebroek DEPARTMENT OF DECISION SCIENCES AND INFORMATION MANAGEMENT (KBI) KBI 1109 A Comparison of Two-Stage Segmentation Methods for Choice-Based Conjoint Data: A Simulation Study Marjolein Crabbe Bradley Jones Martina Vandebroek Abstract Due to the increasing interest in market segmentation in modern marketing research, several methods for dealing with consumer heterogeneity and for revealing market segments have been described in the literature. In this study, the authors compare eight two-stage segmentation methods that aim to uncover consumer segments by classifying subject-specific indicator values. Four different indicators are used as a segmentation basis. The forces, which are subject-aggregated gradient values of the likelihood function, and the dfbetas, an outlier detection measure, are two indicators that express a subject’s effect on the estimation of the aggregate partworths in the conditional logit model. Although the conditional logit model is generally estimated at the aggregate level, this research obtains individual-level partworth estimates for segmentation purposes. The respondents’ raw choices are the final indicator values. The authors classify the indicators by means of cluster analysis and latent class models. The goal of the study is to compare the segmentation performance...
Words: 12792 - Pages: 52
...Business Research Methods Project On Conjoint Analysis Identifying Key Product Attributes & Product Designing of Mobile Phones Abstract This paper intends to explore consumer preferences for Mobile phones attributes, to determine the optimal combination for consumers, and to provide manufacturers a reference for their marketing strategies. In this study, consumers were divided into several demographics (age, gender, occupation) and individual preferences for various mobile phone attributes were compared. Consumers showed significant demographical difference in their preferences over the combination of mobile phones attributes. The various combination of mobile phone attributes were grouped together. Subjects were asked to rank the 22 product profiles (Pair1 to Pair22) from the most to the least preferred. The variables Pref1 through Pref7 contain the IDs of the associated product profiles, that is, the card IDs. Subject 1, for example, liked pair13 most of all, so PREF1 has the value 13. Analysis of the data is a task that requires the use of command syntax—specifically, the CONJOINT command. The necessary command syntax has been provided in the file conjoint.sps. Literature Review N. Soutar et al. (2008), the study aims to examine its relevance in exploring the trade-offs followers make about leaders. The aim was to have an integrated understanding of leadership. The leaders were assessed on the eight leader attributes obtained from three focus groups...
Words: 3607 - Pages: 15
...RESEARCH PAPER NO. 1805 Corporate Social Responsibility Reputation Effects on MBA Job Choice David B. Montgomery Catherine A. Ramus May 2003 RESEARCH PAPER SERIES CORPORATE SOCIAL RESPONSIBILITY REPUTATION EFFECTS ON MBA JOB CHOICE David B.Montgomery1 Sebastian S. Kresge Professor of Marketing Strategy -Emeritus Graduate School of Business Stanford University Stanford, CA Tel: (650) 723 3029 Email: Montgomery_david@gsb.stanford.edu & Dean, School of Business Singapore Management University Catherine A. Ramus* Assistant Professor Donald Bren School of Environmental Science and Management University of California Santa Barbara, CA 93106- 5131 Email: Ramus@bren.ucsb.edu Tel: (805) 893 5057 Fax: (805) 893 7612 *Corresponding Author 1 The authors’ names are merely alphabetical. 2 CORPORATE SOCIAL RESPONSIBILITY REPUTATION EFFECTS ON MBA JOB CHOICE ABSTRACT In a preliminary study with 279 MBA’s from two European and three North American business schools we find that reputation-related attributes of caring about employees, environmental sustainability, community/ stakeholder relations, and ethical products and services are important in job choice decisions. We use an adaptive conjoint analysis survey tool to discover the relative weighting of a new set of social responsibility job search criteria, including these attributes with traditional job search criteria like financial package, geographical location, etc. In addition, our results show that more than...
Words: 1819 - Pages: 8
...Spring 2011 Professor William R. Dillon 210A Fincher 214/768-3163 Email: bdillon@mail.cox.smu.edu Office Hours: Thursday 1-2 pm and by appointment Course Description Determining what is valued and the importance of product features and service offerings is perhaps the most important issue that marketing managers face. Recently, conjoint and choice models have become popular techniques to help marketing managers understand what customers value. The objective of this course is to expose the student to a variety of preference models used by brand managers and marketing analysts and to give students hands-on experience in using conjoint and choice modeling techniques. This course examines these marketing decisions using a combination of lectures, cases, and exercises. Learning Objectives: 1) Develop an understanding of consumer decision making frameworks and protocols. 2) Learn how to design and analyze choice/conjoint experiments so as to quantify the importance consumers place on specific attributes/ benefits. Course Material Readings, Lecture notes, Case Exercises and Situation Analysis directions are available on Blackboard at https://courses.smu.edu/webapps/login/ . Evaluation Exam 40% Quizzes 35% Simulation Exercise 25% 100% Please consult the Simulation Exercise document for details. IMPORTANT! The simulation exercise is a group (two-three person assignment) and is due (in my hands)...
Words: 1318 - Pages: 6
...verlede verbruikers se houdings jeens produkte en hul eienskappe gemeet het, is die moontlikheid van die effek van interaksie tussen die attribute oorgesien. In die Suid-Afrikaanse konteks het die literatuurstudie getoon dat daar ‘n behoefte is aan ‘n studie om te bepaal wat die waarde is wat vroulike verbruikers aan sekere produkeienskappe heg voordat aankoopbesluite gefinaliseer word. ‘n Vraelysopname is as primêre data-insamelingsmetode gebruik waartydens die respondente versoek is om aan te toon wat hul voorkeure is vir dertig gepaarde kombinasies van die produk en sy eienskappe. Hierdie studie het op vier eienskappe, naamlik handelsmerk, styl, kleinhandelaar en prys gefokus. Hipoteses is geformuleer en voorkeurkeuse-ontleding (“conjoint analysis”) is vir die ontleding van data gebruik. Die bevindinge toon aan dat daar beduidende verskille is in die waardes wat vroulike verbruikers heg aan die eienskappe van ‘n kledingstuk voordat aankoopbesluite geneem word. INTRODUCTION Although the apparel industry seems to be in the maturity stage and growth is slow, fashion trend cycles are accelerating – nowadays the average successful clothing trend lasts only six to twelve weeks. The presence of more and more brands has created a competitive environment unheard of in the past (Rutter & Edwards, 1999). A major change in today’s society is the expanded role of female consumers as more and...
Words: 6321 - Pages: 26
...one or more MIT Sloan Management Review articles by electronic or mechanical means (including photocopying or archiving in any information storage or retrieval system) requires written permission. To request permission, use our Web site (www.sloanreview.mit.edu), call or e-mail: Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 e-mail: smrpermissions@mit.edu To request a free copy of our article catalog, please contact: MIT Sloan Management Review 77 Massachusetts Ave., E60-100 Cambridge, MA 02139-4307 Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 Fax: 617-258-9739 e-mail: smr-orders@mit.edu How Social-Cause Marketing Affects Consumer Perceptions A market research technique called conjoint analysis can help managers predict what kind of affinity marketing program is likely to offer the best return on investment for their brand. Paul N. Bloom, Steve Hoeffler, Kevin Lane Keller and Carlos E. Basurto Meza H ow should companies determine the best way to allocate marketing dollars between conventional promotional programs and affinity marketing programs? The former simply stress the benefits of buying a specific brand, while the...
Words: 5977 - Pages: 24
...MARKET RESEARCH PLAN FOR HANGYO ICE CREAMS PVT. LTD. Prepared for Hangyo Ice Creams Pvt. Ltd. Mangalore – 575003 Karnataka, India Prepared by Group T2 Section 4 MNCN – 2 T. A. Pai Management Institute - 576104 March 26, 2014 Letter of Transmittal March 26, 2014 F.S. Miranda GM(Marketing) Hangyo Ice Creams Private Ltd. Hampankatta, Mangalore Karnataka 575001 India Dear Mr. Miranda As agreed in our meeting on February 13,2014, we are submitting the attached report entitled market research for Hangyo Ice Creams. This report examines the most preferred new ice-cream flavor in the market and its related parameters .This report illustrates the research method to find the viability and choice of a new flavor, its packaging and pricing for Hangyo Ice creams from within the regular customer pool in Manipal, Udupi and Mangalore. I hope you find this report satisfactory. Sincerely yours, Anish Sengupta Deepanwita Nandi Navonil Rahut Neha Poddar Sourav Mohapatra T. A. Pai Management Institute Manipal 576104 ACKNOWLEDGEMENTS The project was a success mainly due to the contributions from a number of people. First and foremost, we take this opportunity to thank Prof. Sridhar Telidevara, the faculty guide for the project, for his continuous support and valuable insights without which the project would not have been successful. We are also thankful to all the faculty members of T. A. Pai Management Institute for their guidance...
Words: 4908 - Pages: 20
...26.11.2015 FULL EXERCİSE ASSİGNMENT CONJOINT PIZZA: 1. Do you agree with the regression results in the analysis sheet? With the importance weights in the other sheet? Did you learn anything new about your own preferences by doing this exercise? How does it compare with the survey you answered in the first session? * I agree with the regression results of my analysis sheet. I always prefer meat in my pizza because of that topping is the most important thing for me and you cann see that coefficient of meat is very high as 0.531. Veggie has negative coefficients as -16.25 because of I always prefer meat instead of veggie. R square is 0.88, it is vey high and consider that test is %88 relevant. After meat, amount is the second important thing for me. My satisfaction is increasing with the amount of meat. I didn’t learn anything new about my preferences because I knew that meat and amount of it are most important thing for me . The answers are similarly same between the answers I gave in the survey and in the class. 2. Based on (a) and your experience with the survey in the last session, what do you consider the strengths and weaknesses of surveys and of conjoint analysis to assert consumer preferences and buying intentions? * First of all, seems in survey didnt actually match with the information given. People can confused when saw the picture of pizza because it didnt seem as the information especially for the amounts of toppics. Also meat is the most...
Words: 451 - Pages: 2
...6/9/2013 6/9/2013 Matthew Hull, Scott Love, Nikole Phillips, Jason Wilcox Predict 450 Matthew Hull, Scott Love, Nikole Phillips, Jason Wilcox Predict 450 Game Console Brand Equity An analysis of forces involved in Xbox, Playstation and Nintendo brand equity Game Console Brand Equity An analysis of forces involved in Xbox, Playstation and Nintendo brand equity Introduction The successful marketing and revenue generation of products is governed by a host of tangible and intangible factors. As marketing analytics research continues to develop theories and models for uncovering these important components of the product sales cycle, certain components differentiate themselves through importance and impact. Brand equity is one such component and can be described as “the added value endowed on products and services…reflected in the way consumers think, feel and act with respect to the brand” (Kotler & Keller, 2012, p. 243). In an effort to better understand brand equity, this paper analyzes the brand equity properties of the three primary gaming consoles in the United States. The analysis of the gaming console platforms from Microsoft (Xbox), Sony (PlayStation) and Nintendo (Wii) is specifically important and revealing because of several factors. First, the initiation of this paper coincides with the unveiling and soon to be released newest additions to the Microsoft and Sony fleet of gaming consoles, specifically the PlayStation 4 and Xbox One. In addition...
Words: 2683 - Pages: 11
...Ch11-H8566.qxd 8/8/07 2:04 PM Page 222 CHAPTER 11 Market segmentation YORAM (JERRY) WIND and DAVID R. BELL All markets are heterogeneous. This is evident from observation and from the proliferation of popular books describing the heterogeneity of local and global markets. Consider, for example, The Nine Nations of North America (Garreau, 1982), Latitudes and Attitudes: An Atlas of American Tastes, Trends, Politics and Passions (Weiss, 1994) and Mastering Global Markets: Strategies for Today’s Trade Globalist (Czinkota et al., 2003). When reflecting on the nature of markets, consumer behaviour and competitive activities, it is obvious that no product or service appeals to all consumers and even those who purchase the same product may do so for diverse reasons. The Coca Cola Company, for example, varies levels of sweetness, effervescence and package size according to local tastes and conditions. Effective marketing and business strategy therefore requires a segmentation of the market into homogeneous segments, an understanding of the needs and wants of these segments, the design of products and services that meet those needs and development of marketing strategies, to effectively reach the target segments. Thus focusing on segments is at the core of organizations’ efforts to become customer driven; it is also the key to effective resource allocation and deployment. The level of segment aggregation is an increasingly important issue. In today’s global economy,...
Words: 14313 - Pages: 58
...significant jump occurs from .55 to .89. Four clusters is the best approach because you lose information from 4-3 and when going from 4-5 the information is too scattered and becomes irrelevant and unfocused. This is why 4 clusters is the best approach. Q2. Use the number of the segments you determined in Q1 and re-run “Segmentation” from the Segmentation and Classification tool (enable the Discrimination). This time, in the Dendogram sheet, instead of 9 segments you should see the specific number of segments you determined. What are the key segments of import beer drinkers? How can you label them? Explain the profile of each segment according to the segmentation (not discrimination) variables used in the analysis. After determining that four segments would be the best choice for Kirin USA we are left with four clusters. The first cluster we called “immature drinkers” and the attributes for this segment are; they don’t care much for the quality or taste of their beer and are the youngest segment in comparison to the others, they also enjoy acquiring a “buzz”. The second segment we...
Words: 1658 - Pages: 7
...products and services, and relate this to customer type or segment, experience, demographics etc. Data/Methodology: Satisfaction studies typically require a mix of qualitative and quantitative approaches. At an early stage, qualitative research techniques such as focus groups or one-on-one customer interviews might reveal unexpected dimensions of customer dissatisfaction. Usually customer satisfaction measures and information on customer type are collected by use of a survey. A satisfaction survey frequently includes items dealing with importance and performance of various attributes, and some information on customer type (heavy/light user, experience and other segmentation variables). In addition to simple tabulation, analysis could include cross-tab and regression analysis to understand predictors of satisfaction. Are all segments equally satisfied? Why/why not? Is performance adequate on the most important attributes? Why/why not? EXAMPLE PROJECT: Research Purpose: Find areas of improvement in the order experience for an online retailer selling specialty dog chew-toys. Research Objectives: Using a sample of current customers, measure importance of key dimensions of the purchase experience, and current performance along these dimensions and relate these to purchase frequency, customer type and demographics. Possible Recommendations: Redesign the web-site so that chew-toys are grouped by usage and include more detailed pictures and descriptions of materials. Provide a log-in for returning...
Words: 1415 - Pages: 6
...Marketing, Second Edition. London: International Thompson Business Press, 1999, pp. 92-119. Forecasting for Marketing J. Scott Armstrong The Wharton School, University of Pennsylvania Roderick J. Brodie Department of Marketing, University of Auckland Research on forecasting is extensive and includes many studies that have tested alternative methods in order to determine which ones are most effective. We review this evidence in order to provide guidelines for forecasting for marketing. The coverage includes intentions, Delphi, role playing, conjoint analysis, judgmental bootstrapping, analogies, extrapolation, rule-based forecasting, expert systems, and econometric methods. We discuss research about which methods are most appropriate to forecast market size, actions of decision makers, market share, sales, and financial outcomes. In general, there is a need for statistical methods that incorporate the manager's domain knowledge. This includes rule-based forecasting, expert systems, and econometric methods. We describe how to choose a forecasting method and provide guidelines for the effective use of forecasts including such procedures as scenarios. INTRODUCTION Forecasting has long been important to marketing practitioners. For example, Dalrymple (1987), in his survey of 134 U.S. companies, found that 99 percent prepared formal forecasts when they used formal marketing plans. In Dalrymple (1975), 93 percent of the companies sampled indicated that sales forecasting was one of the most...
Words: 10312 - Pages: 42
...Danielle Sone Mktg 370-03 12-26-13 805950938 Chi Flat Iron for Men Every morning men and women around the world are graced with the inherent ability of waking up with bed head. Bed head is hair that has been tousled from sleep. It begins from the moment we lay our head down on our pillow, and continues throughout the night as we toss and turn. After a couple hours, the chain reaction begins and a rat’s nest is formed into our hair the second our morning alarm goes off. For most, the solution to bed head is a simple shower. However, not everyone has the time to take showers in the morning. A majority of men and women take their showers the night before. For both sexes, washing your hair the previous night only enhances the likelihood of waking up with severe bed head. Males are often left in the dark when it comes to finding a cure for this morning ritual. Women on the other hand have already figured out a solution to this bed head problem, it is called The Chi Flat Iron. Now it is time for men to realize the benefits this tool can have for them as well. The Chi Flat Iron is a high-end salon model hair straightener that can turn the most brutal bed head into a work of art. Made in the USA, the Chi brand is designed by Farouk Hair Care Systems, a pioneer in the hair care industry. Farouk prides themselves on their ability to make quality hair care products utilizing some of the best technology available. The Chi Flat Iron is a prime example of one of their lines of hair care...
Words: 1826 - Pages: 8
...International Journal of Physical Distribution & Logistics Management Consumer preferences for sustainability and their impact on supply chain management: The case of mobile phones Anu Bask Merja Halme Markku Kallio Markku Kuula Downloaded by Universiti Malaysia Sabah At 08:03 27 February 2016 (PT) Article information: To cite this document: Anu Bask Merja Halme Markku Kallio Markku Kuula, (2013),"Consumer preferences for sustainability and their impact on supply chain management", International Journal of Physical Distribution & Logistics Management, Vol. 43 Iss 5/6 pp. 380 - 406 Permanent link to this document: http://dx.doi.org/10.1108/IJPDLM-03-2012-0081 Downloaded on: 27 February 2016, At: 08:03 (PT) References: this document contains references to 88 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 2370 times since 2013* Users who downloaded this article also downloaded: Craig R. Carter, Dale S. Rogers, (2008),"A framework of sustainable supply chain management: moving toward new theory", International Journal of Physical Distribution & Logistics Management, Vol. 38 Iss 5 pp. 360-387 http://dx.doi.org/10.1108/09600030810882816 Craig R. Carter, P. Liane Easton, (2011),"Sustainable supply chain management: evolution and future directions", International Journal of Physical Distribution & Logistics Management, Vol. 41 Iss 1 pp. 46-62 http://dx.doi.org/10.1108/09600031111101420 ...
Words: 14889 - Pages: 60
