Abstract
Choice-based conjoint analysis has increased in popularity in recent years among marketing practitioners. The typical practice is to estimate choice-based conjoint models at the aggregate level, given insufficient data for individual-level estimation of part-worths. We discuss a method for market segmentation with choice-based conjoint models. This method determines the number of market segments, the size of each market segment, and the values of segment-level conjoint part-worths using commonly collected conjoint choice data. A major advantage of the proposed method is that current (incomplete) data collection approaches for choice-based conjoint analysis can still be used for market segmentation without having to collect additional data. We illustrate the proposed method using commercial conjoint choice data gathered in a new concept test for a major consumer packaged goods company. We also compare the proposed method with an a priori segmentation approach based on individual choice frequencies.
Original language | English (US) |
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Pages (from-to) | 137-147 |
Number of pages | 11 |
Journal | Marketing Letters |
Volume | 6 |
Issue number | 2 |
DOIs | |
State | Published - Mar 1995 |
All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics and Econometrics
- Marketing