Menu-Based Conjoint (MBC)

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: