MaxDiff / Best Worst Scaling (BWS)
How it works:
MaxDiff is a method for determining the importance/relevance of different product features and offerings.
Respondents are shown several sets of usually 3-5 items from a master list. Each of these sets is drawn up based on an experimental design. The respondent is asked to select the most and the least wanted/important item from each of these sets.
Using special multivariate analyses, we can then calculate the individual importance of each of the features.
MaxDiff scaling offers a number of advantages compared both with established, but also other innovative approaches:
- Questions are easy to understand and easy to answer for respondents
- It is possible to take into account many different features and characteristics
- Features are always evaluated relative to one another (“trade-off“)
- Identifies “must-have“ and “nice-to-have“ features
- No tendency to “everything is important” (in contrast to approaches where importance is asked directly)
- Very broad spectrum of uses
- Results are easy to interpret and implement
- Results available on an individual level
Pricing and product design analyses
- Importance of individual product features and characteristics with regard to purchasing behaviour
- Investment in relevant product features and offerings
- Evaluation of new products/innovations
- Evaluation of names for products and services
Image, brand and communication analyses
- Determining image attributes linked with a brand
- Determining the most important image attributes in the brand environment
- Testing claims, advertising messages and communication media
- Determining target groups with similar needs (needs-oriented segmentation)
The advantages of this method are presented in an article in Harvard Business Review.
Case studies on pricing research (Pricing – Price Optimization)
- Product and price optimization: Landline, Internet, mobile phone and additional services B2B > Further information
- Price optimization mobile telephony B2C > Further information
- Innovation in electronic devices > Further information
To find out more about MaxDiff (Maximum Difference / Best Worst Scaling) please contact us.