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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!
Robson
asked Jul 3, 2017 by robson Bronze (700 points)
edited Jul 4, 2017 by robson

1 Answer

+1 vote
Robson,

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. (74,825 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
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