Behind The Sydney Winter Festival

The above shows a real life example of a choice modelling study used to evaluate the potential for a brand new event at the time (the Sydney Winter Festival).

Choice modelling can be used to evaluate the many decisions and trade-offs that consumers undertake when evaluating a product/service – in this example, the choice of venue location, the size of the ice rink, the available budget, etc. As such, it is ideal in estimating demand for new or existing products and services and provides a scientific method to optimise the offer.

Choice modelling methodologies are also designed to determine what the configuration of a product or service should be to maximise its uptake, for example:

  • What product attributes do we dial up or dial down to bring about optimum demand?
  • What combination of features or level of service is the minimum that we can offer?
  • Does ‘brand’ contribute positively or negatively to demand for a product, if at all?
  • What is the price elasticity for a product/service and what is the optimum price I should launch it at?
  • How should we change our price or product/service offer to counter a competitor’s change in their price or product/service offer?