Conjoint.ly allows you to simulate shares of preference for different market offerings. Specifically, you need to describe offerings that are available on the market in the language of the attributes and levels that you chose to include in the study, and the system will estimate the percentages of preferences for these offerings. Please keep in mind that:
For example, you can specify these three offerings to see approximate shares of preference:
|Brand||Monthly fee||Mobile data inclusion||International calls inclusion||SMS inclusion||Share of preference|
|Telstra||$49.00||500MB||0 min||300 messages||30%|
|Vodafone||$39.00||10GB||90 min||Unlimited text||20%|
|Optus||$45.00||Unlimited||300 min||Unlimited text||25%|
|None of the above||25%|
There are two models for calculating market shares:
In most cases, both simulation models produce substantially the same results. However, at times, simulations results will differ greatly from actual market shares, hence adjustments may be needed.
Brand Specific Conjoint experiments provide outputs allowing estimation of; market overview, overall profile, segmentation and interactive simulations. Preference shares, revenue projections and price elasticity can be estimated and charted using Conjoint.ly simulators.
In the below scenario a baseline for four car brands is being shown for preference shares and revenue projections.
Attributes and levels that have been set in the experiment design appear in the simulations screen allowing for charting all possible scenarios. Each scenario can be manually renamed and allows for advanced options such as; segmentation, manual availability adjustment of observed volume share, and adjustment of relative availability (adjustment factor).
|Make and model||Drive-away price||Transmission||Engine type|
Preference shares and revenue projections (assuming 1,00 units offered) can be simulated to assist in adding or modifying product features.
Price elasticity of demand can be calculated for multiple scenarios by clicking on two points of a preference share simulation.
In this scenario, when clicking on both the $23,000 and $25,000 price points for Ladina Klubnika a message will be displayed stating that the price elasticity of demand is elastic.
Price elasticity of demand between $23,000 and $25,000 is -4.6.
Demand is elastic (i.e., an increase in price by 1% leads to more than 1% drop in volume).
Apply custom segmentation to simulations by clicking the “show advanced settings” button and select the required segment(s).
New product launches (NPDs) can be simulated to see redistribution of preference and revenue shares.
To see the above features of Conjoint.ly in more detail you can start experimenting with the Conjoint.ly simulator using “Example experiment 2: Preferences in cars (brand-specific)” in your example experiment library.
Here are also some suggestions for further reading:
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