Discrete Choice Modeling in Pharmaceutical Marketing Research from Media and Social Media Consultant Los Angeles

Staff writer: Brjden Crewe

Date: 7.25.2012


Value expectancy models dominated marketing research until the early 1970’s. In a standard value expectancy model, consumers are asked to give a rating on an individual experience with the product. The values retrieved from the ratings of consumers are combined in order to represent the total utility of attributes of the products.

For these reasons, the value expectancy models are also named componential models because the total utility of a product is derived from individual responses to the product attributes. The biggest concern from value expectancy models is that consumers may not be able to differentiate the importance of all the attributes of a product. In pharmaceutical marketing research, a drug’s side effects and dosing may be considered equally as important to physicians and patients alike.

Conjoint was developed in order to overcome these problems, so instead of asking consumers to rate the importance of each individual attribute of a product, they were presented with a list of profiles associated with the products and were asked to give a preference rating on each profile in media. Los Angeles for instance, is a great city to find profiles that consist of many attributes of products such as efficacy, price, and side effects varied in its combinations among profiles.

Derived from the values of profiles, the utility of individual attributes is of great importance. Put more simply, the overall evaluation of profiles is decomposed into each utility scale for each attribute level and thus for each attribute and for that reason alone, conjoint is also called decomposition model.  Social media consultant Los Angeles and media Los Angeles assisted these findings.

Conjoint has been widely used in quantitative marketing research and has been hailed as the most innovative way of determining consumers’ true preference of products.  However, conjoint hosts several limitations, questions and concerns among professions such as a market researcher or a social media consultant. Los Angelesfor instance,in a conjoint study, is a city that includes all attributes presumed to be the same across the products available in the area.

More simply put, we create profiles to which the levels of attributes for each product are essentially the same. We know that the prices for prescription and generic drugs vary greatly, which is also true among brand-name products. We also know that when we are conducting a conjoint study, we’re mainly concerned about the most important effects of attributes. We then evaluate the differences between attribute levels, and ignoring how the changes of levels of one attribute may differ on levels of other attributes. For example, different brands may have different price sensitivities in the market.

The differences between a conjoint study and a discrete choice study

A discrete choice study was developed to overcome limitations which were created in a conjoint study. Discrete choice allows for interaction among the levels of attributes which is particularly useful in the estimation of price elasticity however, it doesn’t require that the levels be the same across all attributes. One product may have dosages which differ from other products’ dosages which furthermore, a discrete choice experiment won’t force physicians to prescribe a product after seeing profiles of each individual product.

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