Have an idea?

Visit Sawtooth Software Feedback to share your ideas on how we can improve our products.

Including another product to the CBC once data is collected

Dear All,

We have finished CBC chip allocation study with just 2 attributes : Product (6 levels) and price (5 levels).
After all data has been collected and analysed our client came back to us with a remark that on the market there is one more competitor which is not included to the study (we were not informed about it), is sold in a different package size (3xlarger) and obviously resective higher price. Unfortunatelly we didn't have option "None" in the study what would help I think somehow. The big question is how to include
this 7th product into excel simulator (as a None option I think) if we know its market share (about 15-20%)?

I would be very grateful for any tips!
asked Jul 3, 2017 by robson Bronze (750 points)
edited Jul 4, 2017 by robson

1 Answer

+1 vote

Well, this is a tough one, and I sympathize.  There's no great way to do this, but the idea below might help.

First, you could add a 7th product as a none alternative.  To do this you will need to go into the simulator and add a column for the none alternative.  Through trial and error you can find the utility of the 7th product that leads it to have a 15%-20% share (whichever you want).  

Now, this is a poor fix because it assumes, among other things, that the 7th product takes share proportionally from the other six, when in fact this may not be true at all.   

Though I think this top-of-mind idea is a poor fix to your problem,  it is a fix and I'll be curious to hear if other folks have better ideas.
answered Jul 3, 2017 by Keith Chrzan Platinum Sawtooth Software, Inc. (84,975 points)
Thank you Keith.  I got similar idea. I'm aware of all disadvatages but better this than nothing. Thank you very much again. Robson