Objective

Design and analyze discrete choice experiments (also called conjoint analysis) to discover which product or service attributes are preferred by potential customers.

Background

Lenzmart is a famous eyewear retail chain that has both an online and offline presence. Of the many products it designs and sells, reading glasses are very popular. There are multiple attributes for a pair of reading glasses, including the frame’s material, shape, color, weight, type and price. The levels of each of these attributes are displayed in Exhibit 1 (see PDF).

The Task

To customize and better position each product, the marketing team of Lenzmart performs the following tasks so that they can understand customer preferences:

• Create an effective and efficient design or set of profiles comprising varying product attributes for their experiment.
• After conducting the experiment, the team hopes to understand:
• Which attribute is perceived of high value by their customers?
• What is the relative importance of each attribute?
• What is the optimized configuration?
• How much are customers willing to pay if there is a change in attribute levels?