A conjoint-based product designing procedure incorporating price competition

S. Chan Choi, Wayne S. DeSarbo

Research output: Contribution to journalArticle

36 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)451-459
Number of pages9
JournalThe Journal of Product Innovation Management
Volume11
Issue number5
DOIs
StatePublished - Nov 1994

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management of Technology and Innovation

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