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Supporting case study · Marketing Analytics

Product Configuration and Willingness-to-Pay Analysis

Estimated part-worth utilities from conjoint data, compared product configurations, and translated attribute preferences into product-design and pricing recommendations.

ExcelConjoint AnalysisRegressionPart-Worth UtilitiesWillingness to Pay
Product Configuration and Willingness-to-Pay Analysis project graphic
Part-worthsutility estimates
WTPvalue translation
Regressionestimation method
Excelmodeling tool
The challenge

What needed to be understood.

Customers evaluate a product as a bundle of attributes. The analysis needed to separate those combined preferences into interpretable utility values and compare realistic configurations.

Approach

How the analysis was built.

  1. Encoded attribute levels for regression-based conjoint estimation.
  2. Estimated part-worth utilities and interpreted positive and negative preference signals.
  3. Converted utility differences into approximate dollar values where supported by the model.
  4. Compared alternative product configurations and checked design orthogonality.
Key findings

What the evidence showed.

  • Attribute levels contributed unevenly to total preference, revealing which features drove product appeal.
  • Utility-based comparisons made it possible to distinguish a best-value configuration from a more premium option.
  • Orthogonality checks helped evaluate whether the experimental design could isolate attribute effects.
Business recommendations

What should happen next.

  • Prioritize features with strong utility contribution rather than adding costly attributes indiscriminately.
  • Validate willingness-to-pay estimates through market tests before using them as final prices.
  • Use simulation to compare proposed configurations against likely competitive alternatives.
Limitations and integrity

What this project does—and does not—prove.

Conjoint estimates reflect the supplied choice/rating exercise and model specification; actual purchases can differ from stated preferences.

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