Disaggregate Discrete Choice Analysis

Disaggregate discrete choice analysis is fast becoming a favorite topic among market research professionals due to the new method's ability to answer a wide range of marketing questions.

The approach is far superior to simple concept tests in which respondents are asked to rate hypothetical products or individual product characteristics on a scale. It more closely resembles real-world consumer choice because products are chosen based on their overall composition rather than on their particular components.

We can model how consumers make decisions rather than asking them outright how they make those decisions – an advantage because people often have a very difficult time articulating why something is or is not appealing.

How does it work?

We ask respondents to choose between two hypothetical products in a series of questions. The products are described in each question by a list of attributes that let the respondent easily compare between alternative products.

The product attributes typically include such key marketing variables as features, packaging, pricing, and promotions. You can use the model to assess the impact of certain features, types of packaging, pricing and/or promotional strategies.

You can use disaggregate discrete choice methodology for:

• New product marketing (features, packaging/labeling, pricing, distributing, promoting, packaging)
• Competitive analyses
• Promotion profitability analyses
• Brand equity studies
• Brand positioning