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Identifying Unmet Demand

Author

Listed:
  • Sandeep R. Chandukala

    () (Kelley School of Business, Indiana University, Bloomington, Indiana 47405)

  • Yancy D. Edwards

    () (School of Business, Saint Leo University, Saint Leo, Florida 33574)

  • Greg M. Allenby

    () (Fisher College of Business, Ohio State University, Columbus, Ohio 43210)

Abstract

Brand preferences and marketplace demand are a reflection of the importance of underlying needs of consumers and the efficacy of product attributes for delivering value. Dog owners, for example, may look to dog foods to provide specific benefits for their pets (e.g., shiny coats) that may not be available from current offerings. An analysis of consumer wants for these consumers would reveal weak demand for product attributes resulting from low efficacy, despite the presence of strong latent interest. The challenge in identifying such unmet demand is in distinguishing it from other reasons for weak preference, such as general noninterest in the category and heterogeneous tastes. We propose a model for separating out these effects within the context of conjoint analysis, and we demonstrate its value with data from a national survey of toothpaste preferences. Implications for product development and reformulation are explored.

Suggested Citation

  • Sandeep R. Chandukala & Yancy D. Edwards & Greg M. Allenby, 2011. "Identifying Unmet Demand," Marketing Science, INFORMS, vol. 30(1), pages 61-73, 01-02.
  • Handle: RePEc:inm:ormksc:v:30:y:2011:i:1:p:61-73
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    File URL: http://dx.doi.org/10.1287/mksc.1100.0589
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    References listed on IDEAS

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    Cited by:

    1. Johannes Reichl & Sylvia Fr├╝hwirth-Schnatter, 2012. "A censored random coefficients model for the detection of zero willingness to pay," Quantitative Marketing and Economics (QME), Springer, vol. 10(2), pages 259-281, June.
    2. Dellaert, Benedict G.C. & Arentze, Theo & Horeni, Oliver & Timmermans, Harry J.P., 2017. "Deriving attribute utilities from mental representations of complex decisions," Journal of choice modelling, Elsevier, vol. 22(C), pages 24-38.
    3. Wang, Xinfang (Jocelyn) & Curry, David J., 2012. "A robust approach to the share-of-choice product design problem," Omega, Elsevier, vol. 40(6), pages 818-826.

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