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ot Red Green Thickness Spiciness Color Conjoint Analysis: Graphical Output Spiciness Thickness Color % % % Analogy A Dimensional Attribute List of a Flashlight ? Weight ? Rust resistance ? Length ? Color ? Water resistance ? Materials ? Style ? Durability ? Shock resistance ? Heat tolerance ? Explosiveness ? Flammability ? Aroma ? Translucence ? Buoyancy ? Hangability ? Rechargeability ? Flexibility ? Malleability ? Compressibility An Idea Stimulator Checklist ? Can the dimensions be changed? (larger, smaller, longer, shorter, thicker...) ? Can the quantity be changed? (more, less, bine, fractionate...) ? Can the order be changed? (arrangement, precedence...) ? Can the time element be changed? (faster, slower...) ? Can the cause or effect be changed? (stimulated, energized...) ? Can there be a change in character? (stronger, weaker...) ? Can the form be changed? (animated, speeded, slowed, attracted...) ? Can the state or condition be changed? (hotter, colder...) ? Can the use be adapted to a new market? (men, women...) Relationships Analysis for New Insurance Products Phase 3: Concept/Project Evaluation ? Design of evaluation system ? Full screen – Judgment/Managerial Opinion (smaller firms and those who did little new product work) – Concept Test followed by Sales Forecast (if only issue is whether consumers will like it) – Scoring Models (a mechanical arrangement of checklist factors with weights on them) ? Evaluate new product concepts (as they begin to e in) on technical, marketing, and financial criteria. ? Rank them and select the best ones. ? Product protocol Cumulative Expenditures Curve Key Input to the Design of the Evaluation System % of expenditures Time Launch Many hightech products RD (major cost) Many consumer products Marketing (major cost) Notes on the Design of Evaluation Systems ? Emphasize the stages that use most of the expenditures. ? Error AB (Stop the project that would succeed) is worse than BA (Continue the project that would fail). ? Opportunity cost. (What other project is waiting for funding?) Procedure for a Concept Test ? Prepare concept statement ? Decide concept test format(s) ? Commercialize concept statement ? Offer petitive information ? Determine price(s) ? Select respondent type(s) ? Select response situation ? Define the interview ? Conduct trial interviews ? Interview, tabulate, analyze Mail Concept Test Format Sketch The ATAR Model: Definitions ? Buying Unit: Purchase point (person or department/buying center). ? Aware: Has heard about the new product with some characteristic that differentiates it. ? Trial: Usually means a purchase or consumption of the product. ? Available: If the buyer wants to try the product, the effort to find it will be successful (expressed as a percentage). ? Repeat: The product is bought at least once more, or (for durables) remended to others. An ATAR Model of Innovation Diffusion Profits = Units Sold x Profit Per Unit Units Sold = Number of buying units x % aware of product x % who would try product if they can get it x % to whom product is available x % of