Our client, a leader in home security systems, required insights that tracked emerging trends in their industry, quantified interest in a potential new product offering, determined its optimal features and pricing, and identified segments that would be its most viable target.
To gain a clear understanding of price points and optimal segments, we needed to study the consumer demand and preference for these products. Our teams designed a discrete choice study among 2000 participants with a general interest in home automation, monitoring, or security. The purpose of the discrete choice was to optimize the new product idea on factors such as brand, price, and specific hardware and software features. A latent class segmenting tool was then used on the product feature utility values to find market segments that were positive toward specific product configurations.
Through our research, five market segments were uncovered, ranging from a basic/price-sensitive segment to a high-end/less price-sensitive segment. By profiling the target segments and identifying how they prefer to learn about and purchase these types of products, we provided valuable input to our client’s marketing strategy. Key marketing messages were also inferred based on how the target segments intended to use the product.