T o optimize product design from a financial perspective, it is critical to understand the cost of offering a particular feature versus the perceived value that consumers associate with it. With this information, a decision-maker is in a position to make the right call about which product features to offer and also which ones to focus on in advertising and other market communications.

The Analysis of Cost vs. Associated Value 

This type of analysis uses the results from the conjoint analysis, along with data provided by the client. We then analyze the cost of offering a particular feature level versus the value that consumers associate with it. The goal of this type of analysis is to identify feature levels where perceived value exceeds the cost of offering that feature level.

How Cost Value Analysis Helps 

Within a group of decision-makers for a new product or service there are always disagreements regarding the features to be offered – some people may favor one feature, some people may favor another, and others may fall in the middle.

This type of analysis helps to guide a group of decision-makers in the right direction – the direction of those product features that have the most appeal or value to prospective buyers in relation to their cost. We then provide a chart that provides clear direction for product feature decision-making.

The Cost Value Analysis Process

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