ISSN:
1573-059X
Keywords:
Choice experiments
;
conjoint analysis
;
market segmentation
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract Choice-based conjoint analysis has increased in popularity in recent years among marketing practitioners. The typical practice is to estimate choice-based conjoint models at the aggregate level, given insufficient data for individual-level estimation of part-worths. We discuss a method for market segmentation with choice-based conjoint models. This method determines the number of market segments, the size of each market segment, and the values of segment-level conjoint part-worths using commonly collected conjoint choice data. A major advantage of the proposed method is that current (incomplete) data collection approaches for choice-based conjoint analysis can still be used for market segmentation without having to collect additional data. We illustrate the proposed method using commercial conjoint choice data gathered in a new concept test for a major consumer packaged goods company. We also compare the proposed method with ana priori segmentation approach based on individual choice frequencies.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF00994929
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