Optimal pricing and product-planning for new multiattribute products based on conjoint analysis

In the conjoint analysis, by applying the trade-off approach to the rank orders data of preference among pairs of attributes (i.e., profiles) obtained from consumers, utility value for each level of each attribute is estimated. While the trade-off approach makes few cognitive demands on the respondent and is simple to follow, it is both time-consuming and tedious. Moreover, it is conducive to respondents’ losing their place in the table or developing some stylized pattern, just to get the job done. Most importantly, however, the task is unrealistic; wreak alternatives do not present themselves for evaluation on a trade-off approach basis. In this paper, the authors discuss the optimal pricing and product planning for new multiattribute products based on the utility values of attribute levels measured by the conjoint analysis. In this case the full-profiles approach is applied to the rank order data of preference among full-profiles obtained from consumers.