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Measuring customer preferences in new product development: comparing compositional and decompositional methods

Author

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  • Roland Helm
  • Armin Scholl
  • Laura Manthey
  • Michael Steiner

Abstract

Preference measurement is important in the early stages of new product development. Conjoint analysis (CA) and analytic hierarchy process (AHP) are common methods for measuring preferences with CA dominating marketing research and practice. These methods mainly differ with respect to their basic conception: AHP is a compositional method whereas CA is designed in a decompositional manner. This study aims at comparing the methods as instruments of preference measurement. The results show a high degree of predictive and convergent validity of both methods. However, inspecting the results in detail reveals considerable differences, which indicate that AHP performs slightly better.

Suggested Citation

  • Roland Helm & Armin Scholl & Laura Manthey & Michael Steiner, 2004. "Measuring customer preferences in new product development: comparing compositional and decompositional methods," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 1(1), pages 12-29.
    • Handle: RePEc:ids:ijpdev:v:1:y:2004:i:1:p:12-29
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    Citations

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    Cited by:

    1. R. Helm & M. Steiner & A. Scholl & L. Manthey, 2008. "A comparative empirical study on common methods for measuring preferences," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 9(3), pages 242-265.
    2. Hafezi, Maryam & Zolfagharinia, Hossein, 2018. "Green product development and environmental performance: Investigating the role of government regulations," International Journal of Production Economics, Elsevier, vol. 204(C), pages 395-410.
    3. Alain De Beuckelaer & Jarl Kampen & J. Van Trijp, 2013. "An empirical assessment of the cross-national measurement validity of graded paired comparisons," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1063-1076, February.
    4. Jonas Jasper, 2019. "A Var Analysis of the Connection between FDI and Economic Growth: A Case Study from Vietnam after 30 Years Reforms," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 4(6), pages 51-67, Februaury.
    5. Maarten Ijzerman & Janine Til & John Bridges, 2012. "A Comparison of Analytic Hierarchy Process and Conjoint Analysis Methods in Assessing Treatment Alternatives for Stroke Rehabilitation," The Patient: Patient-Centered Outcomes Research, Springer;International Academy of Health Preference Research, vol. 5(1), pages 45-56, March.
    6. Gabriela D. Oliveira & Luis C. Dias, 2020. "The potential learning effect of a MCDA approach on consumer preferences for alternative fuel vehicles," Annals of Operations Research, Springer, vol. 293(2), pages 767-787, October.

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