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CBC vs. ACBC: Comparing Results with Real Product Selection (2009)

Validity studies that include data on actual sales are hard to obtain. In this article, Chris Chapman of Microsoft Corporation compares CBC and Adaptive CBC (ACBC) in terms of a number of measures, including ability to predict actual market shares for a consumer electronics device. ACBC produced slightly better estimates of market share. Also, Chapman cites evidence that ACBC may obtain more precise estimates than CBC, indicating need for lesser sample size (with reduction in fielding costs). Price sensitivity was also greater for ACBC than CBC.

Chapman conludes: "In short, the performance of ACBC for our CE product was similar to CBC and somewhat better in alignment with market data. We believe future research would be useful to determine whether this pattern of results (better prediction; higher price sensitivity; lower standard deviation) continues with other product categories."

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