Report on Conjoint Analysis of Oris Watch company

Introduction of Conjoint Analysis of Oris Watch company

Consumer preferences are vital to estimating while developing an innovative new product. Consumer preferences and perceptions influence sales revenue and overall organizational profitability. Considering this, organizations conduct research and market surveys to collect information about the preferences and requirements of consumers regarding various possible attributes of products. Conjoint Analysis is a commonly used technique by the organization for the selection of appropriate features and attributes of a product based on consumer preferences.

1.1)            Case Study Overview/ Contextual Information

The case study is about qualitative and quantitative analysis of Oris targeted market. According to the case study, Oris is a brand for luxury watches. Key competitor companies of the Oris brand are Rolex and Patek Philippe. These competitor brands are offering a variety of watches with different attributes including attractive colours, wide price ranges, types of gold, and sizes. Moreover, competitor brands are also offering some exclusive but limited edition watches at relatively higher prices with attractive attributes. Following the footsteps of competitor brands, Oris is going to introduce some luxury and limited edition watches in the same targeted market. To win in this segment and cover maximum market share Oris has to offer watches with highly demanded attributes and features. Oris has collected data from 20 selected respondents about 18 product profiles to identify attributes which are highly appreciated by the respondents.

1.2)            Purpose of Conjoint Analysis of Oris Watch company

The prime purpose of this work is to identify highly demanded attributes of luxury watch to support the Oris brand in the new product development process. Considering this purpose, conjoint analysis is taken in this present work. Present work is focused to identify the best product profile and possible outcome of that particular product profile. Present work is consist of information about possible features and attributes of a luxury watch offered by the Oris brand.   

2)      Methodology of Conjoint Analysis of Oris Watch company

The methodology used for the analysis of the collected data is explained in this section. Regarding this work, primary data is collected from selected respondents of the targeted market. To conduct quantitative data analysis by using conjoint analysis technique we have collected quantitative data on a rating scale starting from 0 and ending at 100.

Conjoint analysis is an appropriate technique to apply as it can provide us information about consumer preferences and worth of each attribute associated with product profile. Moreover, the selection of the conjoint analysis technique is a wise decision as it can provide useful information about market segmentation and the probability of sales. Apart from this, this technique can also support to select additional costly features which do not have enough worth for consumers. However, the complexity of this technique is the major limitation. Excluding this, current conjoint analysis are only based on data collected from 20 respondents which are the main limitation of this present work.   

3)      Interpretation of Conjoint Analysis of Oris Watch company

3.1) Importance of Different Watch Attributes

According to the conjoint analysis of Oris (by using collected data from 20 respondents), consumers have different preferences and responses towards products profiles. The following graph is representing the average responses of 20 consumers regarding 18 product profiles. Following this line chart, the majority of consumers appreciated product profile 12 as it has the highest average rating of 96.25. This product profile has attributes as Rolex, 45mm size, 3 complications, Yellow gold type, and $40,000 price. Other than this, other highly rated product profiles are 1, 2, and 6. These product profiles have some common attribute of luxury watches. For instance, 1 and 2 watches are offered by Rolex brand. While product profiles 1 and 6 are offered in White colour.

The above-mentioned graph also represents that consumer responses are not all the same for a particular brand. In fact, responses changes towards a brand as the attribute of offered product are changed. For instance, product profile 1, 2, 3, 10, 11, and 12 are also representing products of the Rolex brand but consumer responses towards these product profiles are not same. Such changing responses indicate high bargaining power of consumers as they are not following a brand with loyalty. Rather than giving preference to brands consumers are interested in giving preference to attribute and features of products

3.2) Part Worth Estimation and Importance of Attributes

The following table represents the level of importance in the views of 20 customers regarding various attributes linked with analyzed product profiles.

In the following table, regression, absolute value, preferences, and rank are presented for all selected attributes of luxury watches. These results are taken from the analysis of survey data. According to the findings, regression values are negative for the brand, sizes of a watch case, type of gold, and price-related attribute. However, the regression value is positive and highest for the number of complication attribute. In accordance with this, the addition of complications in the luxury watches fluctuates consumer preferences at a very limited extent as it is not the prime attribute of consumer preference.