Menu-based Choice modeling (MBC)

Menu-based Choice modeling (MBC) is an innovative conjoint-based method specifically designed for markets where the purchase choice is based on a menu. Think of a fast-food restaurant where consumers can create their meal by combining single items – burger and a soft drink – or buy a pre-configured menu.

The interview process in MBC is different from traditional CBC, where research participants choose between fixed concepts. Instead, they build their ideal concept/combinations of items using a menu, perfectly mimicking the type of choice they would face in real life.
MBC benefits and limitations:

 – MBC is the most realistic research technique in appropriate markets
 – Precise readings of price sensitivity are available for each menu item
(e.g. in a fast-food context, you can measure the price sensitivity of each burger and snack)
 – Demand and revenue forecasts are available for each menu item
 – MBC is more complicated to execute than standard CBC

MBC: When to use it?

 – For customizable products (e.g. Dell laptops): to forecast demand and revenues
 – For fast-food menus: to optimize price and increase average expenditure
 – In telecom industries: to optimize your product bundles (e.g. internet, TV, phone)
 – For insurance and investment plans: to optimize prices of difference levels of service you offer (e.g. full-coverage dental
insurance vs basic dental insurance)

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