Abstract
Conjoint analysis is described as an important method for designing direct marketing offers prior to a market test. The method is demonstrated with an application in designing direct marketing offers which focus on the price of the product, the channels through which the product may be purchased, and the exchange/refund policy. The results of conjoint analysis provide the utilities of each variable at each level. This information is then used to construct alternative direct marketing offers. The simulated willingness to purchase is also discussed.

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