A tailored Conjoint Analysis solution from restaurant data leader Revenue Management Solutions is now available worldwide to restaurant operators developing new markets, menus and products in an increasingly complex environment.
A pioneering name in pricing for nearly 30 years, RMS recognizes that restaurants need new solutions to revolutionize their competitive strategies and drive profitability. Its Conjoint Analysis, previously available only to clients for special projects, presents selected participants with realistic item trade-off scenarios so brands can gain insights into factors impacting purchasing decisions and price sensitivity. Restaurants use the data to shape future pricing decisions, product development and menu designs without risking “real-world” traffic loss.
“As brands prepare to make critical business decisions in 2024, we stand as a partner, relying on our research acumen and industry expertise,” said RMS Chief Research & Development Officer Sebastian Fernandez. “Using new technologies, our experienced statisticians tailor each conjoint study to meet client needs, so the results are relevant and lead to profitability.”
Operators can choose between two conjoint study techniques.
Choice-based studies replicate real-life purchasing behavior and outcomes, providing valuable pricing and product strategies.
The more complex menu-based studies mimic restaurant ordering behavior. Participants build combinations of items from a full menu so brands can optimize menu and price, forecast revenue and uncover sales opportunities.
To illustrate the power of choice-based conjoint studies, RMS surveyed more than 3,000 US quick-service restaurant (QSR) diners to understand item-specific value. Respondents weighed in on chicken sandwiches, nuggets and bone-in chicken at popular brands, including Chick-fil-A, Popeyes, KFC, McDonald’s, Burger King, Wendy’s, Wingstop and Jack in the Box.
The results uncovered:
How quick-service brands stack up across different chicken offerings
Which brands are favored by different generations, regions and households
How price sensitivity affects the most popular choices and what brands are most vulnerable to trade down
“Conjoint analysis, in tandem with RMS’ pricing expertise, reveals a window into future consumer behavior,” says Fernandez. “Our in-depth chicken market study underscores the powerful value of these insights for restaurant brands looking to better understand their customer preferences and pricing strategies.”