As you all know, Conjoint Analysis is a basic statistical tool for managing our company's product and pricing strategy.
ACBC (Adaptive Choice Based Conjoint) offers us the latest technology in this area through Sawtooth software, positioning itself as an element that should help us, from a strategic solution to determine a series of parameters that we ask ourselves from marketing or general management.
What is the price elasticity of my products? What is the ideal price at which I should position my product or service? What level of cannibalization exists between our products/services if I lower or raise the price of a product? What demand will I get with a product configuration? What demand transfers go to my competition and what comes to me? How can I define the optimal product/service bundle?
ACBC is what ACA is to traditional conjoint (CVA), the difference is that it does not work on the ordering of cards but rather through preferences (Choice derivation).
Choice-Based Conjoint has become very popular in the last 5 years because it works on the basis of a more palpable reality. Instead of making a ranking or rating of cards, the interviewees, based on a series of products with all their characteristics, choose which one they would buy. As in the real world, there is the option of not choosing any of the products presented.
The proper derivation of the Choice-Based Conjoint is the "adaptive" version or ACBC.
In order to directly demonstrate the application of ACBC, I am sending you this presentation uploaded to Slideshare that you can see in the following blog entry.
