Taking choice modeling to the next level | SKIM at FOCI 2013
by SKIM on May 16, 2013 Edit
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At The 2013 Future of Consumer Intelligence conference, SKIM thought leaders, Eline van der Gaast and Joris Huisman, shared new methods and techniques for expanding the ability to create forward looking models accounting for rational and emotional choice behavior. These models enable marketers and product developers to make strategic and tactical decisions.
For more information about this presentation, visit http://www.skimgroup.com/skim-at-foci-2013.
4. Why do we experiments?
Experiments enable us to create and
control the virtual environment of a moment
of truth and observe responses to your new
developments and strategies
4
6. NEW choices require NEW techniques and
methodologies
6
Menu-Based Conjoint
Multi-stakeholder Choice Modeling
Integrating emotional drivers of choice
9. …. leading to increased freedom of choice for the
consumer
9
You can have any color you
want as long as it is black.
Choice from numerous
different packages, options
and colors.
10. How can we understand consumer
behavior in a highly customizable
environment?
10
11. The answer is Menu-Based Conjoint (MBC)
11
Option 1 $
Option 2 $$
Option 3 $-
Option 4 $
Option 5 $+
Option 6 $$$
$$ $ $+
Which car would
you choose?
Total price = $
Which of the following
options would you choose
on top of this car?
VS.
12. It’s the difference between…
12
$$ $ $+
Option 1 $
Option 2 $$
Option 3 $-
Option 4 $
Option 5 $+
Option 6 $$$Total price = $
OR
AND
VS.
13. What does it give us?
13
$$ $ $+
Option 1 $
Option 2 $$
Option 3 $-
Option 4 $
Option 5 $+
Option 6 $$$Total price = $
Optimal pricing per car
Uptake and optimal
pricing per feature
VS.
26. ?
How do you determine which message will have the greatest impact on the dialogue?
Optimized messaging strategy = More prescriptions, more compliance
26 FOCI 2013 |
27. How do we account for complex interactions
between different stakeholders in the
decision making process?
27
28. A fictitious business case:
A prescription painkiller
28
What is the optimal communication strategy?
Objective: measure preference and differentiation for each
message; forecast impact on share and revenue
• 4 new positioning statements
• Existing product
• Strong competition
• Significant patient involvement
29. Patients differ from each other
29
Mrs. A
Mr. Z
Ms. J
Sure, doctor, thank you!
Not if I have to pay for it myself!
I read something else on Wikipedia!
30. Physicians differ too
30
Dr. Medcalf Dr. HutchinsonDr. Alban
Because I
say so!
How does it
make you feel?
The data speaks
for itself…
31. What happens if they meet
in the doctor’s office?
31
Mrs. A
Mr. Z
Ms. J
Dr. Medcalf Dr. HutchinsonDr. Alban
34. Using a bridging variable we weigh the response of the
physicians to account for the behavior of the patient
34
Simulate
physician
preferences
with no patient
request
Simulate
patient
preferences
with physician
recommendation
Recalculate
physician
preferences
with the patient
preferences
Output:
simulator
of market share and
sales revenue for
each message tested
Decision Influence Modeling Process
35. And again there are many other situations where we
need to model complex interactions...
35
38. 38
Easy access to audiovisual
technology enables us to create
and control the (virtual)
environment of decision making
experiment and observe reaction
and responses to the stimuli
39. 39
A virtual shelf puts a
consumer in a realistic context
of his purchase decision
40. 40
It also allows us to track the
respondents virtual
considerations….
Even though this respondent bought
Snapple, we can see that they are
attracted by the Arizona packaging
= Mouse tracking
41. 41
… and with eye tracking
technology we can even make
this assessment more intuitive
45. How will these innovations make you life easier?
45
Menu-Based Conjoint
Multi-stakeholder Choice
Modeling
Emotional Drivers of Choice
Improve your pricing strategy of customizable
products based on price sensitivity of features
Account for interaction between different
stakeholders in your communication strategy
Base your business decision on rational and
emotional drivers of choice of your customers
46. Visit our booth for a fresh ‘stroopwafel’!
Eline van der Gaast | New Venture Director
E.Vandergaast@skimgroup.com
@Eline_Frederiek
elinevandergaast
Joris Huisman | New Venture Director
J.Huisman@skimgroup.com
@JorisHuisman
jorishuisman
Notes de l'éditeur
On the one side you see a very famous example by Henry Ford who mentioned the customer could have any color they wanted as long as it was black. If you nowadays go to the Ford website you can completely design your own ideal car. You can select your favorite color from a big range and complement the base model with additional options and / or packages. This also brings a new challenges in terms of the research that we do.