Webinar: Understanding Consumer Behavior for Online Purchases
Max diff scaling for research access(4)
1. MaxDiff ScalingA Better Way to Understand Preference / Importance Nico Peruzzi, PhD http://twitter.com/NicoPeruzziPhD 408-202-1521 nperuzzi@orconsulting.com October 2010
2. Agenda Copyright 2010 Outsource Research Consulting | All Rights Reserved What is MaxDiff? Why use it? Why is it better than rating scales? How is it different than conjoint? Case studies
3. What is MaxDiff? MaxDiff (Maximum Difference Scaling) is an approach for obtaining preference/importance scores for multiple items: Brand preferences Brand images Product/service features Messages Advertising claims Benefits MaxDiff is also known as “best-worst scaling” Copyright 2010 Outsource Research Consulting | All Rights Reserved
4. How many times have you tried to interpret the difference between a mean of 4.2 and 4.4 on a 5-point rating scale? You know the futility of that exercise. Copyright 2010 Outsource Research Consulting | All Rights Reserved
5. Types of Data Nominal – categories (gender, political affiliation, etc.) Ordinal – rankings (college football ranking, survey rankings, etc.), Likert scales Interval – Temperature Fahrenheit, Likert scales often treated as if they were interval Ratio – height, weight, temperature Kelvin, MaxDiff Scores! Copyright 2010 Outsource Research Consulting | All Rights Reserved
6. MaxDiff Design Copyright 2010 Outsource Research Consulting | All Rights Reserved Card #1 Card #2 Card #3 Experimental Design/ Randomization Card #4 Card #5 Card #6 Card #7 Etc.
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8. No scale bias or different interpretation across respondents or languages/cultures/education levels
9. Any downside? TimeCopyright 2010 Outsource Research Consulting | All Rights Reserved
10. Easy to Interpret MaxDiff scores are easy to interpret. They are commonly placed on a 0 to 100 common scale and sum to 100. Thus, when you see a “10” it has twice as much value as a “5” You can’t do this with rating scale results Copyright 2010 Outsource Research Consulting | All Rights Reserved
11. Why not use conjoint? MaxDiff is related to conjoint in that it forces trade-offs, however… Conjoint is only appropriate when you want to estimate how multiple attributes taken together affect overall preference MaxDiff looks at a lot of “items” (levels) within a single attribute (variable) (e.g., product features)… Whereas conjoint looks at multiple attributes, each with some number of levels; conjoint commonly examines the feature-price mix Copyright 2010 Outsource Research Consulting | All Rights Reserved
13. Case Study: Feature Benefits Client: Data Robotics, Inc. Objective: Testing benefits Method: MaxDiff with 7 items Copyright 2010 Outsource Research Consulting | All Rights Reserved
17. Affordable: Best in value upfront and over time − savings compound with “pay-as-you-grow” storage
18. Safe: Products offer single and dual drive redundancy with self-healing capabilities
19. Expandable: Instantly increase capacity by inserting a new hard drive or replacing the smallest drive – even when all hard drive bays are full12
20. Drobo Product Family S iSCSI SAN Direct Attached Storage - DAS Network File Sharing FS
21. What are some benefits of Drobo? Which statements most resonate with buyers I am constantly running out of storage. I need to instantly expand and grow my capacity without downtime or delay. I find RAID too complex and want something easier to manage. I like the ability to buy drives when I need storage, instead buying storage ahead of my needs. I need a storage device that consolidates my needs on a single, easy to use array rather than multiple devices that require individual administration and create unnecessary clutter. I want a storage device that can manage itself so that I don’t need to use consultants or hire dedicated staffing to manage it. My data is extremely valuable - I need a system that protects me from drive failures. The ability to mix and match hard drives of different capacities, from any drive maker is important to me. Copyright 2010 Outsource Research Consulting | All Rights Reserved
22. Results 100 point ratio scale Item 1 is 24% more preferred than Item 2, and 89% more preferred than Item 3 Copyright 2010 Outsource Research Consulting | All Rights Reserved
23. Case Study: Feature Preference Client: A multi-billion dollar technology company Objective: Understand which features customers most want in a product line extension Method: MaxDiff with 11 items Copyright 2010 Outsource Research Consulting | All Rights Reserved
24. Features of a XXXXXX product Copyright 2010 Outsource Research Consulting | All Rights Reserved Capacity of 500 Webcams Integrated phone conferencing Application sharing Have 2 presenters at the same time View a participant’s desktop Playback meeting recordings Assign permissions to those accessing recordings Publicize recordings on a public website 24/7 support Access software from smart phone
25. Results Sum to 100 Large variability points to individual differences. Try segmenting to look for groups that have similar score patterns. Copyright 2010 Outsource Research Consulting | All Rights Reserved
26. Case Study: Naming Client: Tough customers – 9 ½-year-old boy-girl twins and their parents Objective: Name new dog Method: MaxDiff with 27 items Guidelines for # of screens to show: 3K/k to 5K/k K = total # of items k = # of items shown per set 3(27)/4 = 20 to 5(27)/4 = 34 3(27)/5 = 16 to 5(27)/5 = 27 Copyright 2010 Outsource Research Consulting | All Rights Reserved
27. Results Small sample size = large variability Copyright 2010 Outsource Research Consulting | All Rights Reserved
28. Follow-up Take top finishers and run… Another MaxDiff A Single select/ final choice question A Ranking question Copyright 2010 Outsource Research Consulting | All Rights Reserved
29. Questions? Contact: Nico Peruzzi, PhD408-202-1521nperuzzi@orconsulting.comhttp://twitter.com/NicoPeruzziPhD Copyright 2010 Outsource Research Consulting | All Rights Reserved
