For Consumer Product Strategy Professionals

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	June 29, 2009 Building The Perfect Bundle Use Quantitative Methods To Pinpoint What Consumers Want And How Much They Will Pay by Doug Williams with J.P. Gownder, Erik Hood

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Executive Summary

Bundles have emerged as a strong opportunity for service providers to drive acquisition and improve customer retention, but only 20% of US online consumers subscribe to voice, broadband, and pay-TV service from a single provider. Today's consumers have different needs, so standard three-tier phone, broadband, and pay-TV service bundles will not appeal to everyone. In order to shake up the bundle service market, consumer product strategists should create new bundles that give consumers what they want at the prices they will pay. To design these "perfect bundles," product strategists should conduct conjoint studies — also known as feature tradeoff analyses — to take the guesswork out of service bundle development. They should also employ conjoint studies to help understand future demand for new and emerging services and features, which can ultimately help the provider prepare for and invest in the right product development opportunities.

TABLE OF CONTENTS

• Consumer Bundles Need A Jump-Start
• Use Conjoint Analysis To Build The Perfect Bundles

RECOMMENDATIONS

• Make Conjoint The Basis For Bundle Design Decisions
• Related Research Documents

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