A Conjoint-Based Product Designing Procedure Incorporating Price Competition

Journal of Product Innovation Management, Volume 11, Issue 5, (1994), Pages 451-459

Posted: 6 Jun 2016

See all articles by S Chan Choi

S Chan Choi

Rutgers Business School

Wayne S. DeSarbo

Pennsylvania State University

Date Written: November 1994

Abstract

Conjoint analysis has become a major tool in the process of designing and concept testing consumer packaged goods and industrial products. In most applications, however, product concepts are tested against existing sets of competing brands without considering potential competitive reactions. Although many researchers have recognized the need for models to incorporate competitive reactions, few methodological developments have been published thus far. Instead of what-if analysis, which depends heavily on the managers' intuition about the competitors' reactions, S. Chan Choi and Wayne DeSarbo propose a game theoretic approach that models competing firms' reactions in price. This price reaction model is incorporated in the conjoint simulator for evaluating product concepts against competing brands. They illustrate the methodology using a commercial data set previously collected.

Suggested Citation

Choi, S Chan and DeSarbo, Wayne S., A Conjoint-Based Product Designing Procedure Incorporating Price Competition (November 1994). Journal of Product Innovation Management, Volume 11, Issue 5, (1994), Pages 451-459, Available at SSRN: https://ssrn.com/abstract=2789696

S Chan Choi

Rutgers Business School ( email )

100 Rockafeller Road
Piscataway, NJ 08854
United States

HOME PAGE: http://www.business.rutgers.edu/faculty-research/directory/choi-chan

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
202
PlumX Metrics