1.

 Compare and contrast the conjoint analysis process for NPD with the other methods
discussed in Lillien et al. (2017) and our class discussion on Marketing Innovation. What
are the benefits and drawbacks to the different approaches discussed?
The conjoint analysis helps companies develop sharper product definitions by
identifying product features that will appeal to customers. It uses customer preference
data for a selected number of “bundles” (or product groupings) and then decomposes
them to show the utility values for the product attributes. It then develops a partworth
function to predict customer preferences on a product. Conjoint analysis is great for
designing products that maximize the measured utilities for customers in a target
segment. It is also great because it shows which attributes are the decision markers for
customers, this would help decide the “must-haves” in a product. I think a drawback
would be the amount of work companies may need to put in if they have a physical
product. Since this approach requires customer analysis of different options, this would
mean that a company with a physical product might need to make a few different
prototypes for customers to choose.
The other main method compared in the reading was the GE/Mckinsey Portfolio Model.
This option is good if you have 10 or less ideas to evaluate (which can also be seen as
a drawback). The criteria in which the ideas are evaluates reflect the strategic context
surrounding the NPD process. Instead of potential customers rating each product,
company managers rate each new product idea on each criterion to determine the
idea’s overall attractiveness and select the most attractive to continue the NPD process.
Two major benefits of the GE/Mckinsey approach is that its much more simple to use
and because there are fewer ideas, companies can analyze more in depth.
2. How can conjoint analysis aid in the market segmentation process? Compare
segmentation via conjoint to the needs-based segmentation process from earlier in the
semester.
Conjoint segmentation can help identify what different groups of people prefer in a
product. Rather than just pointing to a direction of what each segment is buying,
conjoint segmentation gives you a view of what is important to each segment.
Needs-based segmentation simply asks a customer to number how important
something is in a product, while conjoint segmentation is more preferences-based. In
the needs-based segmentation, a customer may rate both comfort & style a 10, but
which one would they prefer? Conjoint segmentation, solves that question by giving
customers different options.