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)

Take a look at this video to find out – in a non-technical way – more about MBC:

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