Analytical Attribute Analytical Attribute Approaches Approaches

Trade-off Analysis Trade-off Analysis and Qualitative and Qualitative

TechniquesTechniquesChapter sevenChapter seven

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Trade-Off (Conjoint) Trade-Off (Conjoint) AnalysisAnalysis

Often called Conjoint Analysis (conjoint means Often called Conjoint Analysis (conjoint means united, combined) united, combined)

This technique is more commonly used in concept This technique is more commonly used in concept evaluation, but does generate high-potential evaluation, but does generate high-potential conceptsconcepts

Trade-off analysis refers to the analysis of the Trade-off analysis refers to the analysis of the process by which customers compare and evaluate process by which customers compare and evaluate brands based on their attributes or features brands based on their attributes or features

Conjoint analysis is one of the most common Conjoint analysis is one of the most common analytical tools that is used to assess trade-offs; analytical tools that is used to assess trade-offs; trade-off analysis is a broader term. trade-off analysis is a broader term.

Put the determinant attributes together in Put the determinant attributes together in combinations or sets.combinations or sets.

Respondents rank these sets in order of Respondents rank these sets in order of preference.preference.

Conjoint analysis assumes a product as a set or Conjoint analysis assumes a product as a set or bundle of attributes and puts all of the bundle of attributes and puts all of the determinant attributes together in new sets determinant attributes together in new sets and identifies which sets of attributes would be and identifies which sets of attributes would be most liked or preferred by customers. most liked or preferred by customers.

Conjoint analysis finds the optimal levels of Conjoint analysis finds the optimal levels of each attribute.each attribute.

Trade-Off (Conjoint) Analysis Trade-Off (Conjoint) Analysis (contd.)(contd.)

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Using Trade-Off Analysis Using Trade-Off Analysis to Generate Conceptsto Generate Concepts

E.g. in case of coffee the three determinant attributes could be E.g. in case of coffee the three determinant attributes could be flavor (five different flavors: Caramel, walnut etc), strength flavor (five different flavors: Caramel, walnut etc), strength (three different strengths: mild, medium, strong), & intensity of (three different strengths: mild, medium, strong), & intensity of aroma (four different intensity levels: very weak, regular). aroma (four different intensity levels: very weak, regular).

There are 60 (5X3X4 = 60) different combinationsThere are 60 (5X3X4 = 60) different combinations Consumers could be asked their preference (though 60 possible Consumers could be asked their preference (though 60 possible

new products are too many for one customer to handle & for a new products are too many for one customer to handle & for a NP manager to plot on the gap maps)NP manager to plot on the gap maps)

Consumers are asked to prefer one to the other and make the Consumers are asked to prefer one to the other and make the choice. choice.

They must trade off attributes wanted most against those They must trade off attributes wanted most against those wanted less wanted less

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One favorite set would emerge from this collection, One favorite set would emerge from this collection, for example in this case customers prefer medium for example in this case customers prefer medium strength, no (added) flavor, and regular aroma. strength, no (added) flavor, and regular aroma.

Unless that particular combination was already on Unless that particular combination was already on the market, we would have our new product concept. the market, we would have our new product concept.

A computer program calculates a utility function for A computer program calculates a utility function for each of the many attributes. each of the many attributes.

The analyst can then order up the one new product The analyst can then order up the one new product (perhaps never thought of before) that optimizes the (perhaps never thought of before) that optimizes the variables — so much of this, so much of that, and so variables — so much of this, so much of that, and so on. on.

If that product already exists in the market, the next If that product already exists in the market, the next best product can be derived. best product can be derived.

Using Trade-Off Analysis Using Trade-Off Analysis to Generate Concepts to Generate Concepts (contd.)(contd.)

Thickness Spiciness Color ActualRanking*

Ranking asEstimatedby Model

Regular Mild Red 4 4Regular Mild Green 3 3Regular Medium-Hot Red 10 10Regular Medium-Hot Green 6 8Regular Extra-Hot Red 15 16Regular Extra-Hot Green 16 15Thick Mild Red 2 2Thick Mild Green 1 1Thick Medium-Hot Red 8 6Thick Medium-Hot Green 5 5Thick Extra-Hot Red 13 13Thick Extra-Hot Green 11 11Extra-Thick Mild Red 7 7Extra-Thick Mild Green 9 9Extra-Thick Medium-Hot Red 14 14Extra-Thick Medium-Hot Green 12 12Extra-Thick Extra-Hot Red 17 18Extra-Thick Extra-Hot Green 18 17

* 1 = most preferred, 18 = least preferred.

Conjoint Analysis Input: Salsa Conjoint Analysis Input: Salsa ExampleExample

Regular Thick Ex-Thick

UT

ILIT

Y

2

1

0

-1

-2

Mild Medium-Hot Ex-Hot Red Green

Thickness Spiciness Color

0.161 0.913 -1.074 1.667 0.105 -1.774 -0.161 0.161

Conjoint Analysis:Conjoint Analysis: Graphical OutputGraphical Output

0 20 40 60 80 100 %

Spiciness

Thickness

Color

59.8%

34.6%

5.6%

Conjoint Analysis:Conjoint Analysis:Relative Importance of Relative Importance of

AttributesAttributes

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Virtual Prototypes in Concept Virtual Prototypes in Concept Testing Testing

Virtual Prototypes are either static pictures of the Virtual Prototypes are either static pictures of the prototypes or video clips that stimulate the product prototypes or video clips that stimulate the product in action and can be presented to respondents via in action and can be presented to respondents via net. net.

Virtual Reality is being used extensively.Virtual Reality is being used extensively. One new measurement method, called information One new measurement method, called information

acceleration (IA). acceleration (IA). First applied by GM in testing new electric car First applied by GM in testing new electric car

concept Can be developed for each situation concept Can be developed for each situation In IA respondents are brought into a virtual buying In IA respondents are brought into a virtual buying

environment that stimulates the information environment that stimulates the information typically available in a realistic purchase situationtypically available in a realistic purchase situation

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QUALITATIVE QUALITATIVE TECHNIQUES TECHNIQUES

These techniques are used in These techniques are used in conjunction with quantitative conjunction with quantitative techniques – natural complements. techniques – natural complements. Qualitative Techniques are Qualitative Techniques are Dimensional AnalysisDimensional Analysis ChecklistsChecklists Relationships AnalysisRelationships Analysis Analogy. Analogy.

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Dimensional Analysis Dimensional Analysis Involves listing any & all features of a Involves listing any & all features of a

product –also called attribute listing: product –also called attribute listing: mere listing may trigger concept mere listing may trigger concept creativitycreativity

List of features may run into List of features may run into incalculable nos due to permutations incalculable nos due to permutations and combinations – methods of and combinations – methods of fabrication, materials, shape, size etc. fabrication, materials, shape, size etc.

Some of the most interesting features Some of the most interesting features may be the ones the product does not may be the ones the product does not have – bicycle with wings! Citing a have – bicycle with wings! Citing a unique dimension sparks ideation. unique dimension sparks ideation.

A Dimensional Attribute A Dimensional Attribute ListList

WeightWeight Rust resistanceRust resistance LengthLength ColorColor Water resistanceWater resistance MaterialsMaterials StyleStyle DurabilityDurability Shock resistanceShock resistance Heat toleranceHeat tolerance

ExplosivenessExplosiveness FlammabilityFlammability AromaAroma TranslucenceTranslucence BuoyancyBuoyancy HangabilityHangability RechargeabilityRechargeability FlexibilityFlexibility MalleabilityMalleability CompressibilityCompressibility

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Checklists Checklists

Asking a series of questions about a Asking a series of questions about a product: Like can it be modified and product: Like can it be modified and leading on to more questionsleading on to more questions

This technique is used as an aid in This technique is used as an aid in problem solving. It is used with one problem solving. It is used with one of the other methods to produce new of the other methods to produce new concepts concepts

An Idea Stimulator ChecklistAn Idea Stimulator Checklistfor Industrial Productsfor Industrial Products CCan we change the physical/chemical properties of the an we change the physical/chemical properties of the

material?material? Are each of the functions really necessary?Are each of the functions really necessary? Can we construct a new model of this?Can we construct a new model of this? Can we change the form of power to make it work better?Can we change the form of power to make it work better? Can standard components be substituted?Can standard components be substituted? What if the order of the process were changed?What if the order of the process were changed? How might it be made more compact?How might it be made more compact? What if it were heat-treated/hardened/cured/plated?What if it were heat-treated/hardened/cured/plated? Who else could use this operation or its output?Who else could use this operation or its output? Has every step been computerized as much as possible?Has every step been computerized as much as possible?

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Relationship AnalysisRelationship Analysis

These methods are based on the idea These methods are based on the idea that creativity comes essentially from that creativity comes essentially from relating things that have something in relating things that have something in commoncommon

Relationship techniques force things Relationship techniques force things together for examinationtogether for examination

Relationships AnalysisRelationships Analysis Force combinations of dimensions (features, Force combinations of dimensions (features,

functions, and benefits) together.functions, and benefits) together. Techniques:Techniques:

Two-dimensional matrixTwo-dimensional matrix Multidimensional (morphological) matrixMultidimensional (morphological) matrix

Two-dimensional example: person/animal Two-dimensional example: person/animal insured and event insured against.insured and event insured against.

Household cleaning products example used six Household cleaning products example used six dimensions:dimensions: Instrument used, ingredients used, objects cleaned, Instrument used, ingredients used, objects cleaned,

type of container, substances removed, texture or form type of container, substances removed, texture or form of cleanerof cleaner

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About the Dimensions Used About the Dimensions Used in Relationship Analysisin Relationship Analysis

Using some aspects of products that Using some aspects of products that are not essentially attributes but may are not essentially attributes but may be translated into features, functions, be translated into features, functions, and benefits and benefits

E.G. different places of use, E.G. different places of use, occupations of users, or other items occupations of users, or other items the product is used with: tea & the product is used with: tea & biscuits (samosa), some may take biscuits (samosa), some may take tea/coffee in offices, but not in tea/coffee in offices, but not in homes . homes .

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Two-Dimensional MatrixTwo-Dimensional Matrix A simple form of relationship analysis A simple form of relationship analysis

using only two dimensions such as using only two dimensions such as products forms, attributes, uses, users. products forms, attributes, uses, users.

The number of two-dimensional The number of two-dimensional matrixes that can be prepared is almost matrixes that can be prepared is almost unlimited. unlimited.

Keep looking till satisfied or believe this Keep looking till satisfied or believe this techniques serves no purpose for you. techniques serves no purpose for you.

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Morphological or Morphological or Multidimensional MatrixMultidimensional Matrix

This method simultaneously combines This method simultaneously combines more than two dimensions - uses a more than two dimensions - uses a multiple set of products forms, multiple set of products forms, attributes, uses, users, and so on in attributes, uses, users, and so on in matrix form. matrix form.

The matrix can include many The matrix can include many dimensions, and have a computer dimensions, and have a computer print out (or a mechanical method of print out (or a mechanical method of reading the rows across) all possible reading the rows across) all possible combinations to be scanned for combinations to be scanned for promising sets. promising sets.

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Analogy (similarity, Analogy (similarity, likeness, correlation) likeness, correlation)

We can often get a better idea of something by looking at it We can often get a better idea of something by looking at it through something else — an analogy. through something else — an analogy.

Just imagine some of the analogies involved in PC Just imagine some of the analogies involved in PC terminology: cut-and-paste, recycle bin, browsing, briefcase terminology: cut-and-paste, recycle bin, browsing, briefcase etc. from non-computer context.etc. from non-computer context.

A relationship needn’t be direct; it can also be only partially A relationship needn’t be direct; it can also be only partially direct. Similarities and differences also give NP ideas. direct. Similarities and differences also give NP ideas.

Preparing, serving, & consuming meals in a plane is Preparing, serving, & consuming meals in a plane is analogous to doing so in home, & several good ideas were analogous to doing so in home, & several good ideas were created for new processes (& furniture) in the home kitchen. created for new processes (& furniture) in the home kitchen.

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To be useful, find a usable analogous To be useful, find a usable analogous situation. To achieve this, analogy should situation. To achieve this, analogy should meet four criteriameet four criteria The analogy should be vivid and have a definite The analogy should be vivid and have a definite

life of its ownlife of its own It should be full of concrete imagesIt should be full of concrete images It should be a happening— a process of change It should be a happening— a process of change

or activityor activity It should be a well-known activity and easy to It should be a well-known activity and easy to

visualize and describevisualize and describe

E.g Flight kitchen and home kitchen E.g Flight kitchen and home kitchen

Analogy- Four criteria Analogy- Four criteria

Other Methods:Other Methods:Lateral Search TechniquesLateral Search Techniques

Free associationFree association Stereotype activityStereotype activity Lateral thinking -- avoidanceLateral thinking -- avoidance Creative stimuli wordsCreative stimuli words Studying “big winners”Studying “big winners” Use of the ridiculousUse of the ridiculous Forced relationshipsForced relationships

Keep an idea from dominating thinking as Keep an idea from dominating thinking as it always has in the past by asking it always has in the past by asking avoiding questions.avoiding questions. Ask “Is there another way of looking at this?”Ask “Is there another way of looking at this?” Ask “Why?”Ask “Why?” Focus on an aspect of the problem other than Focus on an aspect of the problem other than

the “logical” one.the “logical” one. List all possible alternatives to every aspect of List all possible alternatives to every aspect of

the analysis.the analysis. Break apart aspects (concepts) of the problem, Break apart aspects (concepts) of the problem,

or combine them to create even more concepts.or combine them to create even more concepts.

Lateral Thinking : Lateral Thinking : AvoidanceAvoidance

Some Creative Stimuli Some Creative Stimuli WordsWords

Guest starsGuest stars AlphabetAlphabet TruthTruth Outer spaceOuter space CharityCharity His and hersHis and hers StyleStyle NationNation FamilyFamily VideotapeVideotape

PhotographyPhotography TestimonialsTestimonials DecorateDecorate FantasyFantasy HobbiesHobbies HolidaysHolidays WeatherWeather CalendarCalendar Push buttonPush button Snob appealSnob appeal

How can you join two wires together?How can you join two wires together? Hold them with your teeth.Hold them with your teeth. Use chewing gum.Use chewing gum.

Can you think of others?Can you think of others? Do any of these ridiculous ideas Do any of these ridiculous ideas

suggest a not-so-ridiculous solution?suggest a not-so-ridiculous solution?

Use of the RidiculousUse of the Ridiculous