PRODUCT STRATEGY AND MANAGEMENT

EXERCISE ON CONJOINT ANALYSIS : SMART WATCH

NAME : Akanksha

Feature Dial Size

Cell/GPS Brand mm Rank Desirability
Cellular Apple 42 1 12
Cellular Apple 44 2 11
Cellular Apple 38 3 10
GPS Apple 42 4 9
GPS Apple 44 5 8
GPS Apple 38 6 7
Cellular Samsung 42 7 6
Cellular Samsung 44 8 5
Cellular Samsung 38 9 4
GPS Samsung 42 10 3
GPS Samsung 44 11 2
GPS Samsung 38 12 1

Mean of
the
Attribut Deviation Squared
Attribute Average Desirability e from Mean Deviation
CELLULA
Feature R 8 6.5 -1.5 2.25
GPS 5 1.5 2.25
Samsung 3.5 -3.0 9.0
Brand 6.5
Apple 9.5 3.0 9.0
38 5.5 -1.0 1.0
Dial Size
42 7.5 6.5 1.0 1.0
mm
44 6.5 0 0

Sum of Squared Deviation = 24.5

No. of levels = 7
Standardizing Statistic = √ SSD / LEVELS) = 1.87

Attribute Deviation from Mean Part Worth or Utility

CELLULAR -1.5 -0.8
Feature
GPS 1.5 0.8
Samsung -3.0 -1.6
Brand
Apple 3.0 1.6
38 -1.0 -0.5
Dial Size
42 1.0 0.5
mm
44 0 0
NOTE : CELLULAR implies that the watch has a sim and can be used as a phone independently GPS
implies that the watch can be used only in conjunction with a phone nearby through Bluetooth.

SUMMARY OF CONJOINT ANALYSIS FOR SMART WATCH

NAME : Akanksha

ATTRIBUTE
ATTRIBUTE LEVELS PART WORTH IMPORTANCE
CELLULAR -0.8
Feature 27.5%
GPS 0.8
SAMSUNG -1.6
Brand 55.2%
APPLE 1.6
38 -0.5
Dial Size
42 0.5 17.2%
mm
44 0

ANALYSIS / UNDERSTANDING:

The analysis shows that given the above combination of specifications of features, the maximum
strength of influence upon desirability of the product is that of the Brand of the product, followed
by the feature it has, GPS or Cellular. Dial Size seems to have the minimum impact out of the three
factors on desirability of a smartwatch. Hence, a strong differentiator might not be built around
the dial size for such a customer, but instead based on the Smartwatch brand.

PRODUCT STRATEGY AND MANAGEMENT

EXERCISE ON CONJOINT ANALYSIS : SMART PHONE

NAME : Akanksha

Battery Pric Ran Desirabilit

life e Brand k y
80 45 Apple 1 12
80 30 Apple 2 11
80 30 One Plus 3 10
 80 30 Samsung 4 9
80 45 One Plus 5 8
80 45 Samsung 6 7
40 30 Apple 7 6
40 30 One Plus 8 5
40 30 Samsung 9 4
40 45 Apple 10 3
40 45 Samsung 11 2

40 45 One Plus 12 1

Average Mean of the Deviation Squared

Attribute Desirability Attribute from Mean Deviation
40 Hours 3.5 -3.0 9.0
Battery Life 6.5
80 Hours 9.5 3.0 9.0
Rs. 30000 7.5 1.0 1.0
Price 6.5
Rs. 45000 5.5 -1.0 1.0
Samsung 5.5 -1.0 1.0
Brand One Plus 6 6.5 0.5 0.25
Apple 8 1.5 2.25

Sum of Squared Deviation = 23.5

No. of levels = 7
Standardizing Statistic = √ SSD / LEVELS) = 1.83

Deviation from
Attribute Mean Part Worth or Utility
40 Hours -3.0 -1.63
Battery Life
80 Hours 3.0 1.63
Rs. 30000 1.0 0.55
Price
Rs. 45000 -1.0 -0.55
Samsung -1.0 -0.55
Brand One Plus 0.5 0.27
Apple 1.5 0.82
 SUMMARY OF CONJOINT ANALYSIS FOR SMART PHONE

NAME : Akanksha

ATTRIBUTE
ATTRIBUTE LEVELS PART WORTH IMPORTANCE
40 Hours -1.63
Battery Life 54.33%
80 Hours 1.63
Rs. 30,000 0.55
Price 18.33%
Rs. 45,000 -0.55
Samsung -0.55
Brand One Plus 0.27 27.33%
Apple 0.82

ANALYSIS / UNDERSTANDING:

The analysis shows that given the above combination of specifications of features, the maximum
strength of influence upon desirability of the product is that of the battery life of the smartphone,
followed by the brand of the phone. Price seems to be the least influencing factor on desirability
of a smartphone for this individual, hence showing that the user is willing to pay more for a Brand
of choice and desirable levels of features.