Product Configuration Research
Product configuration research generally involves looking at the way people are (or are not) prepared to trade-off the features of a product. It is very closely related to pricing research because price can almost invariably be considered a fundamental feature of a product. As a result, in product configuration research, we generally employ many of the same discrete choice methods that we employ in our pricing research.
Initially, qualitative research help us identify and understand the dimensions of your product that matter to your customers. These dimensions are then integrated into quantitative discrete choice exercises that enable us to effectively deduce the level of importance your customers place on these dimensions.
Why choice-based exercises? Because asking people to try to tell you the level of importance they place on a dimension is notoriously poor approach to learning about the degree to which they base their ultimate decisions on a given dimension. Rather, deducing the level of importance based on observations of the choices among products with even slightly different configurations delivers far superior — far more useful results.
The result of having many respondents demonstrate their choices is a data set that enables Credo to simulate the demand for countless product configurations at any given price.