Ranking Analysis MaxDiff
Scientific Analysis of the Consumer Value of Feature Options
Ever wondered what flavours of ice cream drive the highest consumer willingness-to-pay? What types of movies or music drive customers to choose and pay for a streaming service? Or what service options are valued the most by a certain customer segment?
PriceBeam's Ranking Analysis , based on the industry-standard method of MaxDiff, can help quantifying the answers to such questions. Ranking Analysis is a powerful research technique used to measure preference or importance of various attributes, features, or items. In new product development it can be used to identify the most valued features, refine concepts, and optimize marketing messages.
Guessing consumers' willingness-to-pay leads to that 85% of all innovations fail.
New Product Development
MaxDiff can be used at various stages of new product development to generate valuable insights that can guide decision-making.
Identifying Key Features: By presenting respondents with a series of sets containing various product features, Ranking Analysis can be used to identify the most valued features that should be included in a new product. This information can help prioritize development efforts and allocate resources effectively.
Refining Product Concepts: Ranking Analysis can be used to test different product concepts or prototypes by asking respondents to evaluate the best and worst attributes of each concept. The results can help identify which elements of the concepts are most appealing and which need improvement, allowing for informed modifications and refinements.
Optimizing Marketing Messages: Ranking Analysis can also be used to identify the most persuasive marketing messages by asking respondents to evaluate a series of potential messages. This information can be used to craft marketing campaigns that resonate with the target audience and drive product adoption.
Segmenting Customers: By examining the preference scores generated through MaxDiff analysis, marketers can identify distinct customer segments with varying preferences or priorities. This information can be used to tailor product offerings or marketing messages to different segments, improving the overall effectiveness of marketing efforts.
Advantages of MaxDiff
MaxDiff offers several advantages over traditional rating scales, such as Likert scales or semantic differential scales.
Improved Discrimination: MaxDiff forces respondents to make trade-offs between items, leading to greater discrimination between the items and a more accurate reflection of respondents' true preferences or importance.
Reduced Scale Use Bias: Traditional rating scales are prone to scale use bias, where some respondents tend to use only a limited range of the scale (e.g., only using the extreme points). MaxDiff eliminates this bias by forcing respondents to choose the best and worst items within each set.
Cross-Cultural Comparability: As MaxDiff does not rely on absolute numerical ratings, it is less affected by cultural differences in the use of rating scales, making it more suitable for cross-cultural research.
Minimal Context Effects: The forced choice nature of MaxDiff reduces the impact of context effects, such as primacy or recency effects, which can influence the results of traditional rating scales.
Available in 127 countries
Run the analyses in 127 countries around the world without leaving your desk. PriceBeam takes care of finding respondents, asking the right questions in the local language, interpreting results, and delivering the final analysis to you.
- You define the target market and describe the product.
- PriceBeam finds the right respondents in each of the markets.
- Run single-market assessments.
- Run and compare results between countries, as part of international launches or price increases.
How Does It Work
PriceBeam’s solution conducts extensive market research, collects and analyzes data before delivering a detailed report on your customer’s willingness to pay. This data will enable you to stick out from the competition, maximize profit, and set prices that aid your long-run brand positioning.
Define offering & target market
You describe your product/service on our cloud-based platform. You also define the target market to research.
Conduct Market Research
We collect market research for the given product/service in the defined target market.
Analyze
We collect and analyze the data.
Report
We report the analysis and conclusions to you in our cloud-based solution.