Discrete Choice Analysis

Combining multinomial logit (see above) with experimental design, discrete choice places consumers in the position of making a purchase in the existing marketplace or one of your own creation and assesses how your product will perform. By presenting survey participants with a series of “choice sets” designed to isolate the importance of specific product features, discrete choice determines which product features consumers’ value most and which they value least. In general, discrete choice helps you design a product that maximizes consumer interest, determine the price consumers are willing to pay, and explore the impact on consumer interest of competitor design changes to their existing products. Discrete choice enables the creation of a market simulator which gives you control over testing the design scenarios that are most interesting to you. The method also works great for studying brand equity by isolating the impact of brand in consumer choice decisions.