CHAIR OF

MARKETING

New open-access article published in Marketing Letters

25.01.2024 -  

Ever thought about anchored MaxDiff for product choice predictions in market research? If not, it is high time to do so.

Anchored MaxDiff upgrades traditional MaxDiff by also measuring the outside good’s utility (i.e., the no-buy alternative), which converts relative MaxDiff scores into absolute ones that can also be compared between respondents.

Our recent research published in Marketing Letters investigated in a 2 (direct anchored MaxDiff vs. indirect anchored MaxDiff) x 2 (hypothetical vs. incentive-aligned) online-experiment which method yields the highest predictive validity. We show that both anchoring methods benefit strongly from incentive alignment (similar to other preference measurement techniques, as previously shown in a JAMS article.

We also show that incentive alignment predicts general demand fairly accurately, while hypothetical MaxDiff tends to overestimate demand.

Finally, we take a look at how marketing implications (e.g., product assortment optimizations) may differ between hypothetical and incentive-aligned anchored MaxDiff.

The article provides an overview of anchored MaxDiff and how incentive alignment can now be implemented in a MaxDiff study design.

Enjoy the article for free in Marketing Letters.