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line extension with alternative specific design

I'm planning to do a line extension with CBC/HB. There are no competitors but three products in my existing product line. The subject of my investigation is to know
1) which is the "perfect design" for the new product? (includes pricing)
2) estimating the cannibalization in the product line
3) predicting how many today's "none users" would buy the new product.

Due to the fact, that I want to show pictures of the existing product line, I would like to integrate them together with a none-option as "constant alternatives" and show only the new product with a variation in attribute levels. This means I have four primary attributes plus the none-option, which are shown in every choice task and only one alternative that varies. You recommended using Short Cut for this purpose. Moreover the potential levels of the new product have no levels in common with the existing product line.  

Thanks to your technical papers I am aware of missing level overlaps in my design.  In your "Choice Experiments for Pharmaceutical Market Research" paper you recommended a two-part CBC with data fusion. This could help me to integrate overlapping levels. With my described design I was orientating myself on the single CBC (#5) in the mentioned paper.

What design would you recommend me to achieve my goal to find the best design of the new product under the condition of minimal cannibalization and maximal share of today's "none-users"?

Thank you very much for your support.
asked Jul 28, 2016 by isabelle (180 points)

1 Answer

0 votes

I don't know how relevant overlap is in this situation, since you will have only one changing concept in each choice set, 3 unchanging/picture concepts whose utility you will estimate with alternative specific constants, plus, I assume, a "none" alternative.  I think Complete Enumeration or Shortcut will work fine here (of course the former will be a little more efficient than the latter)

One thing that WILL be important in your design is to have a choice set that contains the 3 unchanging/picture concepts that describe the existing products and the none alternative, without any profile that describes your new product - this gives you a baseline for comparison when you estimate cannibalization and conversion of non-buyers.
answered Jul 28, 2016 by Keith Chrzan Platinum Sawtooth Software, Inc. (66,325 points)
Thanks for your support!
Could you explain me how to integrate a choice-set without the "new product" into the Design? I have tried it with a definition of a hold-out task, but it didn't work. Do I have to export the design in Excel and add it manually?

Moreover there is a format/design problem in my questionnaire: For all three constant alternatives I added a text and a picture at "Level display text". For the one primary attribute with alternative specific attributes I added some conditional displays. Finally the questionnaire looks not pretty, because all constant alternatives are alined but the alternative specific attributes of the one varying primary attribute are not aligned. They are situated above and below the level display of the constant alternatives and consequently there are huge gaps. How can I fix that? I have tried to deselect the button "align common attributes on the same row" but it did't work.

Finally I would like to ask you how I can prohibit appearing 0-levels of the alternative specific attributes for the new product? It doesn't make sense to show the "new product" including 0-levels.  It seems like these 0-levels appeared automatically since the attributes are alternative specific.

Thank you in advance!

Because the choice set without the new product will have a different number of concepts/alternatives than the other choice sets in your design, you will have to set that up as a separate CBC in your questionnaire, one with just a single fixed question.  It will not work to integrate it into the main design.

For the aligning of alternative specific attributes, please contact support@sawtoothsoftware.com as they can help you with that.

Finally, I believe that Support can help with your third issue as well.