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New Product Forecasting

Techniques used to estimate the market performance based upon factors of consumer attraction and satisfaction with the proposed new product, also, to evaluate the degree of trade support and competitive reactions.

Conjoint Analysis

Conjoint Analysis is a set of techniques based on the design of experiments used to measure the following:

1.) The importance individuals attach to each product feature (color, fabric, style, size, price, distribution, package, and promotional method).

2.) The degree of preference for each level of the new product feature (color: blue or red, package: box or plastic sack, size: small or large).

Hypothetical products are presented to sampled customers for preference evaluations. Based on the customer's ratings, the statistical models identify the significant features and predict estimated market share of the new product. The strength of conjoint analysis lies in the ability to measure trade-offs in the consumer buying decision process. Because the customer's purchase decision is always based on trade-offs, alternative methods that are limited to analyzing one feature at a time are inadequate and time-consuming in the new product development process.

Figure 1: New Product Wheel
Alexandria Marketing Research Group, Inc. 212 1/2 W. 5th St., Joplin, MO 64801, Phone: 888.420.8884
Revision Date June 5, 2008