NEW PRODUCT MANAGEMENT

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Chapter 7
Analytical Attribute Approaches:
Trade-Off Analysis and Qualitative Techniques

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Trade-Off (Conjoint) Analysis

  • Put the determinant attributes together in combinations or sets.
  • Respondents rank these sets in order of preference.
  • Conjoint analysis finds the optimal levels of each attribute.

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Conjoint Analysis Input: Salsa Example

Figure 7.2

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Thickness

Spiciness

Color

Actual Ranking*

Ranking as Estimated by Model

Regular

Mild

Red

4

4

Regular

Mild

Green

3

3

Regular

Medium-Hot

Red

10

10

Regular

Medium-Hot

Green

6

8

Regular

Extra-Hot

Red

15

16

Regular

Extra-Hot

Green

16

15

Thick

Mild

Red

2

2

Thick

Mild

Green

1

1

Thick

Medium-Hot

Red

8

6

Thick

Medium-Hot

Green

5

5

Thick

Extra-Hot

Red

13

13

Thick

Extra-Hot

Green

11

11

Extra-Thick

Mild

Red

7

7

Extra-Thick

Mild

Green

9

9

Extra-Thick

Medium-Hot

Red

14

14

Extra-Thick

Medium-Hot

Green

12

12

Extra-Thick

Extra-Hot

Red

17

18

Extra-Thick

Extra-Hot

Green

18

17

* 1 = most preferred, 18 = least preferred.

Regular Thick Ex-Thick

UTILITY

2

1

0

-1

-2

Mild Medium-Hot Ex-Hot

Red Green

Thickness Spiciness Color

0.161 0.913 -1.074 1.667 0.105 -1.774 -0.161 0.161

Conjoint Analysis: Graphical Output

Figure 7.3

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Conjoint Analysis:
Relative Importance of Attributes

0 20 40 60 80 100 %

Spiciness

Thickness

Color

59.8%

34.6%

5.6%

Figure 7.3

(cont’d.)

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Is Conjoint The Right Method?

  • Must be able to break the product down into discrete attributes.
  • Customer must combine these features rationally when evaluating brands (do you buy a Smart Car because it’s practical and gets good mileage, or because it’s cool?)
  • Complex products may have too many attributes to consider – be sure the important ones are selected.
  • Purchase occasion not considered.
  • Joint decisions not considered (does the husband or wife make the car purchase decision?)
  • Assumes some familiarity with the product category; may be less useful for new-to-the-world products.
  • Firm must be able to act on the results!

Conjoint Analysis for More Complex Problems

  • The above example was a full-profile conjoint analysis (all possible combinations were included).
  • For larger problems, a fractional factorial design may be used (not every combination is included, but a subset of the combinations in which each level and each attribute is used at least a few times). Rankings and results are similar to the full-profile analysis.
  • More advanced methods are needed for very complex problems, and also to handle interactions among attributes.

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Commercially Available Conjoint Methods

  • Advanced conjoint analysis methods available commercially include:
  • Adaptive conjoint analysis (respondent judges the importances of the attributes, then responds to options that focus on the most important attributes and levels).
  • Choice-based conjoint analysis (the respondent is shown several choices in combination and asked which is preferred)
  • Both of these procedures reduce the number of attributes to which the respondent is exposed.

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Virtual Prototypes in Concept Testing

  • Information Acceleration (IA): applied by GM to test new electric car concepts.
  • Uses virtual buying environment that simulates the information available in a purchase situation.
  • Uses surrogate travel technology to allow the customer to virtually walk around the showroom and look at computer-generated car prototypes.

Some Qualitative Attribute Analysis Techniques

  • Dimensional Analysis
  • Checklists
  • Relationships Analysis
  • Analogy
  • There are many others.

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A Dimensional Attribute List

  • Weight
  • Rust resistance
  • Length
  • Color
  • Water resistance
  • Materials
  • Style
  • Durability
  • Shock resistance
  • Heat tolerance
  • Explosiveness
  • Flammability
  • Aroma
  • Translucence
  • Buoyancy
  • Hangability
  • Rechargeability
  • Flexibility
  • Malleability
  • Compressibility

Figure 7.4

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An Idea Stimulator Checklist
for Industrial Products

  • Can we change the physical/chemical properties of the material?
  • Are each of the functions really necessary?
  • Can we construct a new model of this?
  • Can we change the form of power to make it work better?
  • Can standard components be substituted?
  • What if the order of the process were changed?
  • How might it be made more compact?
  • What if it were heat-treated/hardened/cured/plated?
  • Who else could use this operation or its output?
  • Has every step been computerized as much as possible?

Figure 7.5

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Templates for Creativity

  • Attribute Dependency: Find a functional dependency between two attributes. Ex.: color of ink on coffee cup is sensitive to heat and can reveal message if coffee is too hot.
  • Replacement: Remove a component and replace with one from another environment. Ex.: antenna is replaced by headphone cord on Walkman.
  • Displacement: Remove a component and its function to change the product. Ex.: Removing floppy drives resulted in ultra-thin PCs.
  • Component Control: Find a new connection between a component internal to the product and one external to the product. Ex.: Toothpastes with whiteners, suntan lotions with skin moisturizers.

Source: Jacob Goldenberg and David Mazursky, Creativity in Product Innovation, Cambridge University Press, 2002.

Figure 7.6

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Relationships Analysis

  • Force combinations of dimensions (features, functions, and benefits) together.
  • Techniques:
  • Two-dimensional matrix
  • Multidimensional (morphological) matrix
  • Two-dimensional example: person/animal insured and event insured against.
  • Household cleaning products example used six dimensions:
  • Instrument used, ingredients used, objects cleaned, type of container, substances removed, texture or form of cleaner

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Another Form of Dimensional Analysis

Two key dimensions for winning new product ideas:

Utility lever: How the product will affect the customer’s life (such as simplicity, fun/image, environmental friendliness, reduced risk, convenience, and productivity).

Buyer’s experience cycle: The stage when/where the product will affect the customer (purchase, delivery, use, supplements, maintenance, disposal).

Source: W. C. Kim and R. Mauborgne, “Knowing a Winning Business Idea When You See One,” Harvard Business Review, Sept.-Oct. 2000, pp. 129-138.

Figure 7.8

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Morphological Matrix:
New Coffee Maker

Heating:

Heating element in pot

Open flame under pot

Microwave unit

Adding Coffee:

By spoon

Built-in measuring cap

Automatic feed

Filtering:

Filtering paper

Porous ceramic filter

Centrifuge method

Keeping Coffee Warm:

Thermal insulating technology

Warming unit in put

External heat source

Pouring Coffee:

Valve under pot

Pump in lid of pot

Espresso-like jets

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Analogy

  • Airplane food systems: analogous to preparing, serving and consuming food at home, suggesting adaptations of food processes and furniture.
  • Amusement park lines: park designers were inspired by watching cattle being herded.
  • Bicycle: analogous to driving a car (steering, moving, turning) but key differences suggesting new types of bicycles (e.g., electric bikes).

Criteria for Selecting Analogous Products

  • Analogy should be vivid and have a life of its own.
  • It should be full of concrete images.
  • It should be a happening – a process of change or activity.
  • It should be a well-known activity and easy to visualize and describe.

Other Methods:
Lateral Search Techniques

  • Free association
  • Stereotype activity
  • Lateral thinking -- avoidance
  • Creative stimuli words
  • Studying “big winners”
  • Use of the ridiculous
  • Forced relationships

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Lateral Thinking -- Avoidance

Keep an idea from dominating thinking as it always has in the past by asking avoiding questions.

  • Ask “Is there another way of looking at this?”
  • Ask “Why?”
  • Focus on an aspect of the problem other than the “logical” one.
  • List all possible alternatives to every aspect of the analysis.
  • Break apart aspects (concepts) of the problem, or combine them to create even more concepts.

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Some Creative Stimuli Words

  • Guest stars
  • Alphabet
  • Truth
  • Outer space
  • Charity
  • His and hers
  • Style
  • Nation
  • Family
  • Videotape
  • Photography
  • Testimonials
  • Decorate
  • Fantasy
  • Hobbies
  • Holidays
  • Weather
  • Calendar
  • Push button
  • Snob appeal

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Use of the Ridiculous

  • How can you join two wires together?
  • Hold them with your teeth.
  • Use chewing gum.
  • Can you think of others?
  • Do any of these ridiculous ideas suggest a not-so-ridiculous solution?

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Thickness

Spiciness

Color

Actual

Ranking*

Ranking as

Estimated

by Model

Regular

Mild

Red

4

4

Regular

Mild

Green

3

3

Regular

Medium-Hot

Red

10

10

Regular

Medium-Hot

Green

6

8

Regular

Extra-Hot

Red

15

16

Regular

Extra-Hot

Green

16

15

Thick

Mild

Red

2

2

Thick

Mild

Green

1

1

Thick

Medium-Hot

Red

8

6

Thick

Medium-Hot

Green

5

5

Thick

Extra-Hot

Red

13

13

Thick

Extra-Hot

Green

11

11

Extra-Thick

Mild

Red

7

7

Extra-Thick

Mild

Green

9

9

Extra-Thick

Medium-Hot

Red

14

14

Extra-Thick

Medium-Hot

Green

12

12

Extra-Thick

Extra-Hot

Red

17

18

Extra-Thick

Extra-Hot

Green

18

17

* 1 = most preferred, 18 = least preferred.