Suggested searches

Looking for a free online survey tool?

Conjoint.ly offers a general survey tool with standard question types, randomisation blocks and multilingual support. Always free.

Get started for free
Request consultation

Do you need support in running a pricing or product study? We can help you with agile consumer research and conjoint analysis.

Request consultation

Case Study: Willingness to Pay For Ingredients

This disguised case study discusses the leading manufacturer's methodology used to understand willingness to pay for benefits of specialty ingredients.

Context and objectives

This disguised case study discusses a leading specialty health foods ingredient manufacturer, Ingredients Co., and the steps they took to understand willingness to pay for benefits of specialty ingredients. Please note that company names and figures used in this educational case study are fictional and have been disguised to ensure confidentiality.

Ingredients Co. is wanting to demonstrate the value of its ingredients to their customers (health food manufacturers), who in turn want to develop products that consumers will find valuable. Their insights manager wanted to better understand; willingness to pay, consumer pain points and how to take share from competing products.

These insights needs were then specified as the following three research questions:

  • RQ1: What is the willingness to pay for each of the benefits?
  • RQ2: Which consumer pain points are most frequently occurring and most difficult to resolve?
  • RQ3: Which Ingredients Co. ingredient has the greatest potential to take share from competing products?

Methodology

Each research question was addressed via a separate module and looked at from different angles.

  • Module 1 (Generic Conjoint) aimed to measure willingness to pay for benefits. In this module, we offered respondents choice of different benefits and associated price
  • Module 2 (MaxDiff) measured perceived frequency and severity of different consumer problems
  • Module 3 (Brand-Specific) aimed to identify the ingredients with greatest potential to take share from competitors (and with the current offering as a baseline)
Module 1: the willingness to pay

RQ1: What is the willingness to pay for each of the benefits?
Module 2: consumer pain points

RQ2: Which consumer pain points are most frequently occurring and most difficult to resolve?
Module 3: take share from competing products

RQ3: Which Ingredients Co. ingredient has the greatest potential to take share from competing products?

Module 1: Generic Conjoint

Ingredients Co. were able to discover both willingness to pay across all respondents and willingness to pay by user type by using Generic Conjoint

Marginal willingness to pay across all respondents
Willingness to pay across all respondents
Marginal willingness to pay by user type
Willingness to pay by user type

Module 2: MaxDiff

By using MaxDiff, Ingredients Co. were able to discover which consumer pain points are most frequently occurring and most difficult to resolve.

MaxDiff

Module 3: Brand-Specific Conjoint

Brand-Specific Conjoint was used to understand benefits that maximises share of preference for Ingredients Co. customers.

Brand-Specific Conjoint

Summary

In summary, by using the different angles of the three modules Ingredients Co. were able to identify the most valuable ingredients. Also, they were able to map the benefits and problems to ingredients, helping their insights manager successfully answer their research questions.

Ingredients Co. mapped benefits and problems to each ingredient…
Mapping benefits and problems to ingredients

And used different metrics to find the most valuable ingredients Most valuable ingredients

Start experimenting

Do you want to understand how your customers would react?


Share on

Written on 19 June 2019 by:
Nik Samoylov image
Nik Samoylov
Conjoint.ly Founder

Read these articles next:

Conjoint Case Study: Employee Benefits Package

Conjoint Case Study: Employee Benefits Package

Pricing research Case studies 24 July 2017

A conjoint study can help pinpoint the ideal employee benefits package for your organisation. Learn More: View our disguised Case Study with a major firm. View article

Pricing a Uni Course With Conjoint Analysis

Pricing a Uni Course With Conjoint Analysis

Case studies Pricing research 20 April 2017

Case Study: This disguised conjoint analysis report from a major university explores how they found optimal pricing for their new course using Conjoint.ly. View article

Price Skimming Strategies

Price Skimming

Pricing research 8 December 2019

We explore how pricing skimming works, when to use it, and how to ensure it benefits your brand/business. View article