CBC/HB is a standalone tool for estimating individual-level results for CBC experiments or for discrete choice data not designed or collected using Sawtooth Software’s tools. CBC/HB is included with your purchase of CBC for Lighthouse Studio 9 and later.
Researchers and academics have argued that respondents are unique. Latent Class utility estimation takes an important step toward recognizing respondent heterogeneity, but stops short of achieving strong individual-level predictions.
The generally preferred method for analyzing CBC data is Hierarchical Bayes (HB) estimation. Having individual-level estimates improves the accuracy of market simulations and leads to better understanding of market structure and attribute importances than aggregate logit modeling.
The CBC/HB module leverages information from all respondents to estimate results for each individual. The individual-level utilities are estimated by a statistical simulation technique called Gibbs Sampling.
HB generally improves predictive validity relative to aggregate logit and Latent Class. A long-standing complaint against aggregate logit has been its IIA assumption, often referred to as the red bus/blue bus problem. Very similar products tend to capture too much net share in aggregate logit market simulations. With individual-level modeling, this effect is less problematic.
The CBC/HB standalone features estimation of individual-level utilites or linear functions (main effects and/or first-order interactions) for standard CBC, best-worst CBC, or allocation-based (constant-sum) CBC questionnaires. Typical run times for market research data sets are from 1 to 20 minutes. CBC/HB reads and writes data to/from text-only files. You do not need to have used CBC to collect the data as long as you arrange the data in the CBC-compatible .CSV format. The utilities from CBC/HB can be used within Sawtooth Software's market simulators.
The CBC/HB System benefits from a fast computer and plenty of available memory.
Lighthouse Studio is our industry leading Windows desktop survey software for powerful choice analytics.
Not sure you can run a conjoint study alone? Team up with our expert consulting team to do portions or all of the work for you!