Conjoint Analysis improves the objectivity of the QFD in the development of new products - QFD is more fit able tool for thinking “outside of the box” - Conjoint Analysis represents more accurately what the customers want. - Conjoint reduces the risk to lose the market orientation in the course of the technical specification and avoids to be high dependent of the expert’s knowledge and experience.

1. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 1
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Linking Conjoint Analysis and QFD in the
Development of Products
Case Study: Smart Home for the group 50plus
Ing. Diego Altamirano
Supervisor: Ing. Samah Abu Assab, M. Sc.
Cottbus, 16.February.2011
Master Thesis

2. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 2
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Objectives
• To test the integration of QFD and Conjoint Analysis, in
a similar way like Pullman et al. (2002), in the
developing of a Smart Home for the group 50plus.
• To compare the results from QFD and Conjoint
Analysis to determinate the difference and similarities
between those methods in the product design.

3. 1.Objectives
2.Introduction
• QFD
• CA
• Pullman’s
approach
3.Study Case
4.Results
5.Conclusions
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 3
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Quality Function Deployment (QFD)
Source: Own representation acc. to
Cristiano et al. 2000, p. 288
•1966: The first time
the concept was
implemented by Yoji
Akao in Japan
•1972: QFD was
used at the Mitsubishi
Heavy Industry
•1974: Toyota Motor
Company applied
QFD in Europe
•1983: article written
by Kogure and Akao
in Quality Progress
•1986: Ford Motor
Company was the
first to apply QFD in
the USA
Four-phase concept
(ASI 1989)

4. 1.Objectives
2.Introduction
• QFD
• CA
• Pullman’s
approach
3.Study Case
4.Results
5.Conclusions
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 4
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Quality Function Deployment (QFD)
•QFD is a way to assure the design quality while the
product is in the design stage (Akao 1990, p.15)
•QFD tries to enhance the linkage between the customers
and stakeholder needs and desires (Picard 2006, p. 336).
Source: Own representation acc.
to Cristiano et al. 2000, p. 288
1 VOC
2 Raking
3 Main customer requirements
4
Technical
requirements
5 HoQ matrix
6 Target values for
technical
requirements
7
Concept
development
8 Part
deployment
matrix

5. 1.Objectives
2.Introduction
• QFD
• CA
• Pullman’s
approach
3.Study Case
4.Results
5.Conclusions
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 5
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Conjoint Analysis (CA)
Source: Own representation acc. to Bichler and Trommsdorff 2009, p. 59
•1964: “Simultaneous Conjoint Measurement” by
psychologists and statisticians Luce and Tukey
•1971: “Conjoint Measurement for Quantifying Judgmental
Data” by Paul Green with his coauthor Vithala Rao
•1985: Sawtooth Software Inc. released its first conjoint
analysis software system called ACA

6. 1.Objectives
2.Introduction
• QFD
• CA
• Pullman’s
approach
3.Study Case
4.Results
5.Conclusions
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 6
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Conjoint Analysis (CA)
•“Conjoint Analysis is marketers’ favorite methodology for
finding out how buyers make trade-offs among competing
products and suppliers”. (Green et al. 2001, p. 56)
Adaptive Conjoint Analysis (ACA)

7. 1.Objectives
2.Introduction
• QFD
• CA
• Pullman’s
approach
3.Study Case
4.Results
5.Conclusions
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 7
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Linking Conjoint Analysis and QFD
• Urban and Hauser (1993)
• Gustafsson (1996)
• Baier (1998)
• Pullman et al. (2002)
• Baier and Brusch (2005)
• Kazemzadeh et al. (2007)
• Abu-Assab et al. (2008)
Pullman’s Approach

8. 1.Objectives
2.Introduction
• QFD
• CA
• Pullman’s
approach
3.Study Case
4.Results
5.Conclusions
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 8
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Pullman’s Approach
(Case example: Harnesses)
• QFD and Conjoint Analysis have to be used as
complementary approaches and should be
conducted simultaneously to provide feedback
between each other (Pullman et al. 2002, p. 363)
• Both methods look at the new product design
problem through different lenses which could result
in a more accurate design (Pullman et al. 2002, pp. 362)
• Pullman’s approach was tested also by Abu-Assab
and Baier (2010) on the example of mobile phones
for elderly people with similar results.

9. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 9
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Study Case: Smart Home for the Group 50plus
“Rentenalarm”
•Not enough young people
who can take care of the
growing number of elders
•The less percentage of
population has to finance
the social security system
for the growing number of
retired people
“New market opportunity”
•The growing number of
elderly people and their
increasing purchasing power
turn the generation 50plus
into an important population
group in the market
Source: DESTATIS, 2009, p.15

10. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 10
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Study Case: Smart Home for the Group 50plus
“Smart Home is understood as the integration of the technology
and services involved in the house with the purpose of improving
the security, communication, comfort and energy saving”
(Georgieff 2008, p.34)
Source: Hampicke 2000

11. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 11
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Main Application Areas of Smart Homes in
the Elderly
Application Area Description
Monitoring and
Healthcare
• Improve emergency intervention
• Automation of standard situation
Saving Resources • Leveraging and optimization of the
existing equipment (energy saving)
• Improve the management of home
services through improving their
efficiency and increasing their
accuracy
Safety •Property protection (burglary, access)
•Personal protection (protection from
falling / injury, automated vital signs
monitoring, environmental control)
•Accident prevention (fire, water)
Source: Own representation acc. to Krämer 2000, p. 13

12. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 12
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Conjoint Analysis: Attributes and Levels
5 Main areas:
•Efficiency
•Comfort
•Safety
•Entertainment
•Price
7 attributes each with
3 levels
and
the price with 4 levels
Source: Own representation based on the information from Busch Jaeger

13. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 13
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Conjoint Analysis: ACA Survey Design
Program: SSI web v5
Predicted Time: 20 min.
Target group: people over 50
Questions: 8 ACA Rating
8 ACA Importance
15 ACA Pairs
1 ACA Calibration

14. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 14
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Conjoint Analysis: ACA Survey Design
• 5 minutes video: To
explain about the
selected attributes and
levels to be evaluated
•Incentive:
Possibility of taking
part in a raffle (Sonny
eBook)
• Information labels and
windows:
To remind or clarify the
information of the video

15. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 15
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Conjoint Analysis: Data Collection
• All Germany (61% from Brandenburg-Berlin)
• 62% have a university degree
• 21% knew exactly what Smart Home is
• 15% had not ever heard about Smart Homes

16. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 16
Diego Altamirano
Linking Conjoint
Analysis and
QFD
QFD: Voice of the Customer (VOC)
Complete free phase:
- What do you like most in your home?
- What do you not like in your home?
- How does the technology help you at home?
- What would you like to make it easier by using
technology at home?
Phase of motivation with video example (incentive)
Final question and quick questioner:
“How much would you invest in a Smart Home?”
Questioner to rank the selected attributes used in the
Conjoint Analysis
Number of interviews: 15 people over 50 years-old
Average time: 28 minutes

17. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 17
Diego Altamirano
Linking Conjoint
Analysis and
QFD
QFD: Customer Requirements
30 respondents were asked to rank each customer
requirement as well as the importance of each of the groups

18. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 18
Diego Altamirano
Linking Conjoint
Analysis and
QFD
QFD: House of Quality (HoQ)

19. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 19
Diego Altamirano
Linking Conjoint
Analysis and
QFD
QFD: Design Features
Source: Own representation based on the information from Busch Jaeger and
additional internet research

20. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 20
Diego Altamirano
Linking Conjoint
Analysis and
QFD
QFD: Parts Deployment Matrix
Note: The correlation between price and parts characteristics
was negative

21. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 21
Diego Altamirano
Linking Conjoint
Analysis and
QFD
QFD: Results of HoQ and Parts Deployment
Lighting control management was determined as the most
important engineering characteristic followed by price
The high scores are a mirror of the high number of
applications of the device in a Smart Home.

22. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 22
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Conjoint Analysis: Utility weights and
importances
The price had the highest average importance with the lower
price.
The home alarm system has the second place of importance.

23. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 23
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Comparison of design attributes importance
and the levels with highest impact
Difference on recognizing the advantages of devices with
high number of applications.
QFD allows to think outside of the box and to find the
possible trade-offs between the different attributes.

24. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 24
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Design of a Smart Home for the group 50
plus
• There is not a standard Smart Home for elderly
people.
• Two main areas where Smart Homes packages could
be successful:
- safety (health and security)
- saving resources.
• Price was considered the main concern about this
product.
• The complexity of the management devices was seen
as a disadvantage.

25. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 25
Diego Altamirano
Linking Conjoint
Analysis and
QFD • Smart Homes is basically a network and each feature
can help to solve different customer requirements.
• To develop a Smart Home is important to know not only
the customer needs, but also all the different
applications that each feature has.
• The attributes and levels evaluated during the practical
part of this work are not the only solutions.
Design of a Smart Home for the group 50
plus (2)

26. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 26
Diego Altamirano
Linking Conjoint
Analysis and
QFD
The use of QFD and Conjoint Analysis for
developing new products
• The correlation between both results is very low in this
experiment (0.021), much lower than in Pullman et al.’s
experiment (0.319) and Abu-Assab/Baier experiment
(0.390)
• Both methods agree in the customer needs; however,
the way of solving these needs are completely different
(different lenses).
• QFD is more fitable for thinking “outside of the box”
(e.g. a switch antibacterial and trade-offs between the
engineering characteristics and features)

27. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 27
Diego Altamirano
Linking Conjoint
Analysis and
QFD • Conjoint Analysis represents more accurately what the
customers want.
- Reduce the risk to lose the market orientation in the
course of the technical specification
- Avoid also to be high dependent of the expert’s
knowledge and experience.
• It is concluded that Conjoint Analysis improves the
objectivity of the QFD in the development of new
products.
The use of QFD and Conjoint Analysis for
developing new products (2)

28. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 28
Diego Altamirano
Linking Conjoint
Analysis and
QFD
References
• Abu-Assab, S. and Baier, D. 2010. Designing products using quality function
deployment and conjoint analysis: A comparison in a market for elderly people.
Advances in Data Analysis, Data Handling and Business Intelligence, 38. 2010, pp. 515
- 526.
• Akao, Y. 1990. Quality Function Deployment: Integrating Customer Requirements into
Product Design. Cambridge MA : Productivity Press, 1990.
• ASI. 1989. Quality Function Deployment American Supplier Institute Inc. Dearborn,
Michigan : s.n., 1989.
• Backhaus, K., et al. 2008. Multivariate Analysemethoden: Eine anwendungsorientierte
Einführung. Leipzig : Springer, 2008.
• Baier, D. and Brusch, M. 2009. Erfassung von Kundenpräferenzen für Produkten und
Dienstleistungen. Conjointanalyse: Methoden - Anwendungen- Praxisbeispiele. Leipzig :
Springer, 2009, pp. 3 - 18.
• Bichler, A. and Trommsdorf, V. 2009. Präferenzmodelle bei der Conjointanalyse.
[book auth.] D. Baier and M. Brusch. Conjointanalyse: Methoden - Anwendungen-
Praxisbeispiele. Leipzig : Springer, 2009, pp. 59-71.
• Buslei, H., Schulz, E. and Steiner, V. 2007. Auswirkungen des demographischen
Wandels auf die private Nachfrage nach Gütern und Dienstleistungen in Deutschland
bis 2050. Berlin : Deutsches Institut für Wirtschaftsforschung DIW, 2007.
http://www.diw.de/documents/publikationen/73/55742/diwkompakt_2007-026.pdf.
• Cabrera, M. and Rodríguez, C. 2005. The role of Ambient Intelligence in the Social
Integration of the Elderly. [book auth.] G. Riva, et al. Ambient Intelligence: The evolution
of technology, communication and cognition towards the future of human-computer
interaction. s.l. : IOS Press, 2005.
www.neurovr.org/emerging/book5/14_AMI_Cabrera.pdf.
• Cattin, P. and Wittink, D. R. 1982. Commercial Use of Conjoint Analysis: A Survey.
Journal of Marketing. Summer, 1982, Vol. 46, pp. 44-53.
• Cristiano, JJ, Liker, JK and White, CC III. 2000. Customer driven Product
development through quality function deployment in the US and Japan. Journal of
Product Innovation Management. 2000, Vol. 17, pp. 286-308.

29. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 29
Diego Altamirano
Linking Conjoint
Analysis and
QFD
References
• DESTATIS (Statistisches Bundesamt Deutschland). 2009. Bevölkerung
Deutschlands bis 2060. Wiesbaden : Statistisches Bundesamt, 2009. Webpage:
www.destatis.de.
• Green, P. and Srinivasan, V. 1978. Conjoint Analysis in Consumer Research: Issues
and Outlook. Journal of Consumer Research. September, 1978, Vol. 5.
• —. 1990. Conjoint analysis in marketing: New developments with implications for
research and practice. Journal of Marketing. October, 1990, Vol. 54, pp. 3-19.
• Green, P., Krieger, A. and Wind, Y. 2001. Thirty Years of Conjoint Analysis:
Reflections and Prospects. Interfaces. March, 2001, Vol. 31, 3 - 2, pp. 56-73.
• Gustafsson, A. and Huber, F. 2000. Das Voice of the Customer- Konzept. [book auth.]
A. Herrmann, et al. Kundenorientierte Produktgestaltung. Munich : s.n., 2000, pp. 179-
193.
• Orme, B. 2010. ACA screening for internal validity. Sawtooth Software Forum. [Online]
Sawtooth Software, July 23-26, 2010b. [Cited: December 3, 2010.]
http://www.sawtoothsoftware.com/forum.php?cmd=show&thread=1347&posts=4.
• Pullman, M. E., Moore, W. L. and Wardell, D. G. 2002. A comparision of quelity
function deployment and conjoint analysis in new product design. The Journal of
Product Innovation Management. 2002, Vol. 19, pp. 354 - 364.
• Sawtooth Software Inc. 2006. SSI Web Manual. Sequim, WA : s.n., 2006.
• Strese, H., et al. 2010. Smart Home in Deutschland: Untersuchung im Rahmen der
wissenschaftlichen Begleitung zum Programm Next Generation Media (NGM) des
Bundesministeriums für Wirtschaft und Technologie. Veröffentlichungen. [Online] May
2010. [Cited: December 29, 2010.] http://www.iit-berlin.de/veroeffentlichungen/iit-studie-
smart-home.
• van de Poel, I. 2007. Methodological problems in QFD and directions for future
developement. Research in Enginnering Design. 2007, Vol. 18 (Nr. 1), pp. 21 - 36.
• Wittink, D., Vriens, M. and Burhenne, W. 1994. Commercial Use of Conjoint Analysis
in Europe: Results and Critical Reflections. International Journal of Research in
Marketing. 11, 1994, pp. 41-52.

30. 1.Objectives
2.Introduction
3.Study Case
4.Results
5.Conclusions
References
Lehrstuhl für Marketing und
Innovationsmanagement
Prof. Dr. Daniel Baier
www.marketing.tu-cottbus.de
WS 10/11 Slide 30
Diego Altamirano
Linking Conjoint
Analysis and
QFD
Thanks for your attention
Questions?