Consumer Willingness to Pay Using Conjoint Analysis
Just how scientific is your pricing? Could you improve profits by increasing prices or even by reducing prices? On this course, you will learn how to use the latest scientific analyses to assess consumer’s willingness to pay for products and services and thus be able to better price your offerings.
Description
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Introduction to a technique called Conjoint Analysis (CA) which is used to help management make decisions such as product or service design, supplier selection etc.
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Explore the methodology for understanding how consumers make trade-offs, which features are important to them, how they choose among competing products and services and, most importantly, how much they are willing to pay for them.
Learning objectives
- Understand how CA models aid in understanding what is important to consumers.
- Understand the concept of Willingness to Pay and the implications for doing business.
- Design, manage and deploy CA based projects to improve understanding of consumer choice.
- Interpret the results to better inform management decision making.
Topics
- Introduction to CA including the main steps involved in CA and the importance of attributes (Price, colour, functionality, lead time etc) using some actual examples.
- Consumer Willingness to Pay and how this changes in shortage situations.
- Practical application on relevant data sets using open-source software.
- Interpret the results into meaningful management insights.
- Key issues to consider when designing a project.
Audience
Those who need to analyse consumer behaviour in a variety of situations and to enable decision making particularly in crisis situations.
Course format
- Powerpoint presentation to introduce the topics
- Case studies based on ‘real world’ problems
- Group discussion/work
- Bring questions from your own work to embed your learning
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