Abstract:

This paper describes the application of a new method of assessing individual customer preferences in conjunction with choice-based conjoint analysis. While individual differences in preference can be estimated from choice data, this method captures consumer heterogeneity as an adjunct to a trade-off exercise. Capitalizing on web-based survey administration, the 'design your own product' functionality included in many manufacturer websites is adapted to give survey respondents the opportunity to configure a product from the feature possibilities included in the trade-off exercise. Results are presented for a study designed to identify optimal feature combinations for a vehicle line.