Durr case study

(1) Please state 4 methods of estimating market share. Which method is most
appropriate in estimating the market share of the air emission control equipment?
And why?

There are 4 methods of estimating market share: Maximum utility rule, Share of
preference rule, Logit choice rule and Alpha rule. In this case, Maximum utility rule is
the most appropriate in estimating the market share. The reason we choose this method is
because Maximum utility rule assume that each respondent can choose or vote for only
one product and that one alternative captures 100 percent of the share for each
respondent. It is normally used for fixed assets for long term use. The air pollution
control system is just this case.

(2) Describe the market share of existing products

In the US market, Advanced air has a 51% of the market share in the existing products,
Wastewatch has 6% less-45% share, while Thermatrix only has 4% in the market.

(3) Which new product would have highest market potential: Servair DX, Premier or
DX Base model

Servair DX would have the highest market potential: a 19% of the share, while Premier
has 14% and DX Base model has only 9% of the share.
(4) Please find out a best attractive product bundle.

The best attractive product bundle would be:

Attributes / Existing
Best Product
Product Profiles

Efficiency Exceeds 9%

Delivery time 6 months

Price 600000

Installed, with 2-year

Delivery terms
warranty

(5) Which cluster(s) of customers Dürr should avoid? Which industry this cluster(s)
most likely belong(s) to?
We divided segmentations to 3 clusters. Cluster 1 doesn’t care about much the efficiency,
neither the delivery time, but cares much about price and delivery terms; Cluster 2
doesn’t care about much delivery terms, but cares much about efficiency; Low price is
not an attractive point to Cluster 3, but doesn’t accept very pricy system, and evaluates
much a short delivery time. So we think according to the new products’ profile, Dürr
should avoid Cluster 3. It most likely belongs to Food & Beverage Industry.

(6) Which specific cluster of prospective customers Dürr should target? And Why?
Dürr should target cluster that doesn’t care about delivery time (Dürr cannot deliver in
less than 9 month), but really cares about technology. In the case, cluster 2 should be the
potential customers.

(7) Please comment on the limitations of this study.

1. Designing conjoint studies can be complex

2. With too many options, respondents resort to simplification strategies
3. Converting perceptions about actual features to perceptions about a reduced set of
underlying features
4. Respondents are unable to articulate attitudes toward new categories, or may feel
forced to think about issues they would otherwise not give much thought to
5. Poorly designed studies may over-value emotional/preference variables and undervalue
concrete variables
6. Does not take into account the number items per purchase so it can give a poor reading
of market share