MAXDIFF
Drivers Analysis (MAX DIFF) from RED C is a powerful statistical technique that allows brand owners to truly understand the factors that influence consumer choice in their category while also providing a potent means of segmentation based on consumer needs.
Traditional survey techniques asking respondents to rate items in terms of their importance in choosing a particular product are often inadequate. How often do you see every item in a list being nominated as important using this approach? Max Diff analysis is different and more closely replicates real-life decision making by forcing respondents to make trade-offs.
Through a sequence of carefully designed trade-off tasks, respondents nominate the most important and least important factors from short subsets of potential influencers on choice. The lists are presented as a randomised subset of all potential influencers, and by completing a number of these trade-off tasks the model “learns” what features are truly driving choice.
The result is that each item is given an importance score or “utility” value based on the principles of behavioural economics. Different factors attract different utility values with the most important item having the highest utility and the least important having the lowest utility. This can help drive strategy and insight in a number of areas:
- Decision Making: Make better decisions by knowing what consumers want, including comparing choice drivers for different subgroups.
- Needs Segmentation: By using utility scores as an input to segmentation models, we can create needs based consumer-centric segments.
- Comms Development: Knowing what matters helps to ensure that the content and tone of your communications will resonate.
- Product Strategies: Smarter Product Strategies built around consumer needs.
Download our Max Diff brochure below by clicking the link.
