Benefit-Based Conjoint Analysis

51 Pages Posted: 26 Aug 2015

See all articles by Dong Soo Kim

Dong Soo Kim

Ohio State University (OSU) - Fisher College of Business

Roger Bailey

Ohio State University (OSU)

Nino Hardt

Ohio State University (OSU) - Fisher College of Business

Greg M. Allenby

Ohio State University (OSU) - Department of Marketing and Logistics

Date Written: July 21, 2015

Abstract

Firms develop products by manipulating the attributes of offerings, and consumers derive utility from the benefits that the attributes afford. While the field of marketing has long been aware of the distinction between attributes and benefits, it has not developed methods for understanding how attributes and benefits are related. This paper develops a benefit-based model for conjoint analysis that assumes consumers satiate on attributes that are perceived to provide the same benefit. A latent-variable model is proposed that estimates the map between attributes and benefits, and is applied to conjoint data from an industry study involving a household consumable. The model is shown to fit the data better, provide improved predictions, and lead to different product design implications than the standard conjoint model.

Keywords: Economic separability, Satiation, Bayesian estimation

JEL Classification: C25, C40, M31

Suggested Citation

Kim, Dong Soo and Bailey, Roger and Hardt, Nino and Allenby, Greg M., Benefit-Based Conjoint Analysis (July 21, 2015). Available at SSRN: https://ssrn.com/abstract=2649933 or http://dx.doi.org/10.2139/ssrn.2649933

Dong Soo Kim

Ohio State University (OSU) - Fisher College of Business ( email )

558 Fisher Hall
2100 Neil Avenue
Columbus, OH 43210-1144
United States
614-313-4868 (Phone)

Roger Bailey

Ohio State University (OSU) ( email )

Blankenship Hall-2010
901 Woody Hayes Drive
Columbus, OH OH 43210
United States

Nino Hardt

Ohio State University (OSU) - Fisher College of Business ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

Greg M. Allenby (Contact Author)

Ohio State University (OSU) - Department of Marketing and Logistics ( email )

Fisher Hall 524
2100 Neil Ave
Columbus, OH 43210
United States

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