Formulas in the conjoint simulator
Formulas are used in the simulator to perform revenue calculations. These formulas do not have the context of a respondent, but otherwise they work in the same way as formulas in other contexts.
The default formula for calculating revenue is:
share * price * 1000
To adjust revenue calculations, click on
Special values
| Special value | Description |
|---|---|
share | The preference share of the concept |
price | The price of the concept |
Calculating volume share
You can do market volume calculations by inputting share * {total market volume} in the formula. For example, if the total market volume for your product category was 1200000 units, you can plot this in the simulator by adding the following formula:
share * 1200000
Calculating revenue
The default calculations on Conjointly performs revenue calculations assuming 1000 total units sold. The preference share and price of each concept is multiplied by the total market volume to calculate revenue. To get a more accurate prediction of your product revenue, replace the 1000 with the total market volume of your product category:
share * price * 1200000
Calculating gross margin
To calculate the gross margin, you can subtract the cost of producing each concept from the price. If your product cost $1.20 to produce, you can use this formula:
share * (price-1.2) * 1200000