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new-product-research-car-grilleI read an interesting article about design elements that no longer serve a purpose, but continue to exist. One of the most interesting one is the presence of a grille on electric cars. 
 
Conventional internal combustion engine cars need a grille because the engine needs air to flow over the radiator which cools the engine. No grille would mean the car would eventually overheat and stop working. Electric cars, however, don’t have a conventional radiator and don’t need the air flow. The grille is there because designers fear that the car would look too weird without it.  It is not clear from the article if that is just a hunch or if it has been tested.
   
It would be easy enough to test this out. We could simply show some pictures of cars and ask people which design they like best. A Max-Diff approach or an agile product like Idea Magnet™ (which uses our proprietary Bracket™ prioritization tool) could handle such a task. If the top choices were all pictures that did not include a grille we might conclude that this is the design we should use. There is a risk in this conclusion.
 
To really understand preference, we need to use a discrete choice conjoint. The exercise I envision would combine the pictures with other key features of the car (price, gas mileage, color…). We might include several pictures taken from different angles that highlight other design features (being careful to not have pictures that contradict each other…for example, one showing a spoiler on the back and another not). By mixing up these features we can determine how important each is to the purchase decision.  
It is possible that the results of the conjoint would indicate that people prefer not having a grille AND that the most popular models always include a grille. How?
 
Imagine a situation in which 80% of people prefer “no grille” and 20% prefer “grille”. The “no grille” people prefer it, but it is not the most important thing in their decision. They are more interested in gas mileage and car color than anything else. The “grille” folks, however, are very strong in their belief. They simply won’t buy a car if it doesn’t have one. As such, cars without a grille start with 20% of the market off limits. Cars with a grille, however, attract a good number of “no grille” consumers as well as those for whom it is non-negotiable.
 
Conjoint might also find that the size of the grille or alternatives to it can overcome even hard core “grille” loving consumers. Also worth consideration that preferences will change over time. For example, it isn’t hard to imagine that early automobiles (horseless carriages as they were called originally) had a place to hold a buggy whip (common on horse drawn carriages), but over time, consumers determined they were not necessary (or perhaps that is how the cup holder was born :)).
 
In short, conjoint is a critical tool to insure that new technologies have a chance to take hold. 
 
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new-product-research-and-conjoint

So much has been written about conducting research for new product development. Not surprisingly, as this is an area of research almost every organization, new or old, has to face day in and day out. As market research consultants, we deal with it all the time and thought it would be beneficial to provide our audience with our own recommendations for some useful sources that explain conjoint analysis – a method most often used when researching new products and conducting pricing research.

Recommendation #1: In 15 Minutes

Understanding Conjoint Analysis in 15 Minutes

This is a relatively brief article from Sawtooth Software, the makers of software used for conjoint, that provides an explanation of the basics of conjoint. The paper uses a specific example of golf balls to make it easy to understand.

Recommendation #2: For Managers

Managerial Overview of Conjoint Analysis 

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For years now, my colleague Jessica would solicit donations to the American Cancer Societythrough its annual Daffodil Days® campaign. Each year I'd give Jessica my donation and a few weeks later I'd receive 10 daffodil buds. I'd arrange them in a vase in my office and watch as they opened up into beautiful blooms over the course of a few days. And in doing so I'd be reminded that my donation is being used to find ways to eradicate cancer and help people in need.

It was announced that this year would be the final year for Daffodil Days®.

product optimization daffodils

I have to admit, my first thought was not, "how will I donate to ACS now?" My first thought was that something was being taken away from me! Which, of course, irritated me. My second thought was that I'll have to look for another way to get daffodil buds next spring. And then it dawned on me that by cancelling the daffodils promotion, the ACS could be losing a long-time supporter.

Businesses are faced with product optimization decisions all the time – what will happen if I remove a product, service or distribution channel from the market? Will customers be lost? What will the short- and long-term effects be?

imaginelehrerOn vacation I read a number of books (love my Kindle) including Why Nations Fail by Daron Acenoglu and James Robinson and Imagine by Jonah Lehrer. While clearly quite different, one on what has allowed some nations to grow and endure while others fail and the other one about unlocking the creative processes of the brain; I took away lessons for my work from both.

“How Nations Fail” isn’t a business book. It is more of a history book than anything, but I saw parallels with what we are facing. The book details a long string of historical examples of nations that either failed outright or that saw some success but then reversed course. The central core is that nations that succeed over time always feature the same factors which feature truly inclusive systems. Meaning, everyone has a chance to succeed on an equal footing. 

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