NEW PRODUCTS MANAGEMENT Merle Crawford Anthony Di Benedetto 10th Edition McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 07 Analytical Attribute Approaches: Trade-Off Analysis and Qualitative Techniques 7-2 Trade-Off (Conjoint) Analysis • Put the determinant attributes together in combinations or sets. • Respondents rank these sets in order of preference. • Conjoint analysis finds the optimal levels of each attribute. 7-3 Conjoint Analysis Input: Salsa Example Thickness Spiciness Color Actual Ranking* Regular Regular Regular Regular Regular Regular Thick Thick Thick Thick Thick Thick Extra-Thick Extra-Thick Extra-Thick Extra-Thick Extra-Thick Extra-Thick Mild Mild Medium-Hot Medium-Hot Extra-Hot Extra-Hot Mild Mild Medium-Hot Medium-Hot Extra-Hot Extra-Hot Mild Mild Medium-Hot Medium-Hot Extra-Hot Extra-Hot Red Green Red Green Red Green Red Green Red Green Red Green Red Green Red Green Red Green 4 3 10 6 15 16 2 1 8 5 13 11 7 9 14 12 17 18 * 1 = most preferred, 18 = least preferred. Ranking as Estimated by Model 4 3 10 8 16 15 2 1 6 5 13 11 7 9 14 12 18 17 7-4 Conjoint Analysis: Graphical Output 7-5 Conjoint Analysis: Relative Importance of Attributes 0 20 40 Spiciness 80 100 % 59.8% Thickness Color 60 34.6% 5.6% 7-6 Conjoint Analysis for More Complex Problems • The above example was a full-profile conjoint analysis (all possible combinations were included). • For larger problems, a fractional factorial design may be used (not every combination is included, but a subset of the combinations in which each level and each attribute is used at least a few times). Rankings and results are similar to the full-profile analysis. • More advanced methods are needed for very complex problems, and also to handle interactions among attributes. 7-7 Commercially Available Conjoint Methods • Advanced conjoint analysis methods available commercially include: • Adaptive conjoint analysis (respondent judges the importances of the attributes, then responds to options that focus on the most important attributes and levels). • Choice-based conjoint analysis (the respondent is shown several choices in combination and asked which is preferred) • Both of these procedures reduce the number of attributes to which the respondent is exposed. 7-8 Some Qualitative Attribute Analysis Techniques • Dimensional Analysis • Checklists • Relationships Analysis – There are many others. 7-9 A Dimensional Attribute List • • • • • • • • • • Weight Rust resistance Length Color Water resistance Materials Style Durability Shock resistance Heat tolerance • • • • • • • • • • Explosiveness Flammability Aroma Translucence Buoyancy Hangability Rechargeability Flexibility Malleability Compressibility 7-10 An Idea Stimulator Checklist for Industrial Products • Can we change the physical/chemical properties of the material? • Are each of the functions really necessary? • Can we construct a new model of this? • Can we change the form of power to make it work better? • Can standard components be substituted? • What if the order of the process were changed? • How might it be made more compact? • What if it were heat-treated/hardened/cured/plated? • Who else could use this operation or its output? • Has every step been computerized as much as possible? 7-11 Templates for Creativity • Attribute Dependency: Find a functional dependency between two attributes. Ex.: color of ink on coffee cup is sensitive to heat and can reveal message if coffee is too hot. • Replacement: Remove a component and replace with one from another environment. Ex.: antenna is replaced by headphone cord on Walkman. • Displacement: Remove a component and its function to change the product. Ex.: Removing floppy drives resulted in ultra-thin PCs. • Component Control: Find a new connection between a component internal to the product and one external to the product. Ex.: Toothpastes with whiteners, suntan lotions with skin moisturizers. Source: Jacob Goldenberg and David Mazursky, Creativity in Product Innovation, Cambridge University Press, 2002. 7-12 Relationships Analysis • Force combinations of dimensions (features, functions, and benefits) together. • Techniques: – Two-dimensional matrix – Multidimensional (morphological) matrix • Two-dimensional example: person/animal insured and event insured against. • Household cleaning products example used six dimensions: – Instrument used, ingredients used, objects cleaned, type of container, substances removed, texture or form of cleaner 7-13 Another Form of Dimensional Analysis Two key dimensions for winning new product ideas: Utility lever: How the product will affect the customer’s life (such as simplicity, fun/image, environmental friendliness, reduced risk, convenience, and productivity). Buyer’s experience cycle: The stage when/where the product will affect the customer (purchase, delivery, use, supplements, maintenance, disposal). Source: W. C. Kim and R. Mauborgne, “Knowing a Winning Business Idea When You See One,” Harvard Business Review, Sept.-Oct. 2000, pp. 129-138. 7-14 Morphological Matrix: New Coffee Maker Heating: Heating element in pot Open flame under pot Microwave unit Adding Coffee: By spoon Built-in measuring cap Automatic feed Keeping Coffee Warm: Thermal insulating technology Warming unit in put External heat source Pouring Coffee: Valve under pot Pump in lid of pot Espresso-like jets Filtering: Filtering paper Porous ceramic filter Centrifuge method 7-15 Other Methods: Lateral Search Techniques • • • • • • • Free association Stereotype activity Lateral thinking -- avoidance Creative stimuli words Studying “big winners” Use of the ridiculous Forced relationships 7-16 Lateral Thinking — Avoidance Keep an idea from dominating thinking as it always has in the past by asking avoiding questions. • Ask “Is there another way of looking at this?” • Ask “Why?” • Focus on an aspect of the problem other than the “logical” one. • List all possible alternatives to every aspect of the analysis. • Break apart aspects (concepts) of the problem, or combine them to create even more concepts. 7-17 Some Creative Stimuli Words • • • • • • • • • • Guest stars Alphabet Truth Outer space Charity His and hers Style Nation Family Videotape • • • • • • • • • • Photography Testimonials Decorate Fantasy Hobbies Holidays Weather Calendar Push button Snob appeal 7-18 Use of the Ridiculous • How can you join two wires together? – Hold them with your teeth. – Use chewing gum. • Can you think of others? • Do any of these ridiculous ideas suggest a not-so-ridiculous solution? 7-19