Choice modelling is often regarded as the most suitable method to estimate consumers’ willingness to pay for quality improvements across multiple dimensions.
It allows multiple variables to be tweaked in an ordered and easy to understand manner. This can include elements like cost, follow-up service, brand recognition and length of warranty. Choice modelling allows companies to analyse the relative importance of each attribute against a consumer’s willingness to pay.
In simple terms, when given two brands that offer the same service at the same cost, there is an opportunity to assess which a consumer would choose. It also allows marketers to assess how important cost is in the consumer’s final decision and whether consumers would pay a premium for extended warranty.
Choice modelling also allows researchers to rank the importance of each attribute and assign a concrete value to each. It’s a powerful tool for marketers who want to delve deeper into consumer comparison metrics.
At EKAS Marketing and Research Services, we have developed an exciting survey tool to directly compare different choice models, known as the EKAS Choice Model.
With this tool, companies can evaluate a multitude of dimensions, reducing the need for analysing each attribute individually. The EKAS Choice Model allows complex models to be summarised in an aesthetically pleasing, user-friendly and easy to understand visual interface.
To learn more about how the EKAS Choice Model can help your business, you can contact Jaxon at jaxon@ekas.com.au or Matt at matt@ekas.com.au
