Design your own vehicle

James H. Christian and David G. Bakken

This paper describes the application of a new method of assessing individual customer preferences in conjunction with choice-based conjoint analysis.

Design Your Own Vehicle

Improving the value of choice-based conjoint analysis for reducing variable manufacturing costs

David G. BakkenHarris Interactive Inc. andJames H. ChristianGeneral Motors Corporation

INTRODUCTION

Global automobile manufacturers face great pressures to reduce costs. Factors affecting their ability to do so include market differences in communication and distribution channels, operational efficiencies, and customer preferences. Satisfying variability in customer preferences, either across or within markets, increases variable costs for the auto manufacturers. In years past, manufacturers often adopted a strategy of offering a given vehicle at several different price points. In the mid-1990s, for example,...

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