Editor's note: Robert Roy is vice president and general manager of the Chicago office of Total Research Corporation. This article is a sequel, if you will, to his October, 1990 Data Use article, "Conjoint evolves into discrete choice modeling," which told the story of Ed Goodride, acting director of the Second City Bus Service, and his efforts to use data analysis to climb the corporate ladder. Ed has succeeded in moving up a rung and now he's set his sights on going further--with the help of his trusty research analyst.
The People
Ed Goodride: Was the acting director of Second City Bus Service, but thanks to low-life politics and a well-applied study utilizing discrete choice modeling, Ed is now the full director.
Research Analyst: Never identified by name in the previous article, we now know he responds to "Ned Dweeb."
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Sally Dumluck: The valedictorian of her high school class, she was known as "Little Sally Dumluck," but the addition of 50 pounds ended that.
The Situation
Ed Goodride has spent the last several weeks congratulating himself on becoming the director of Second City Bus Service. As director, he has discovered that an advertising agency was awarded the Second City account a year or so ago. On one hand, Ed was pleased to learn of the existence of the agency, but on the other hand he was wondering what the ads should attempt to communicate.
(Actually, Ed didn't really use or think of the word "communicate." His comment was more on the order of, "Yo, what should the ad say? 'Bada-bing, bada-bang! ' " These pithy comments were made to Ned Dweeb, who, as we all know, is housed in the third basement of the bus company building.)
Taking "Mister" Goodride's comments as a directive, Ned started his research exploration with a few well-designed focus groups. Out of those focus groups came a list of attributes that could be used in an advertising campaign:
- Fast
- More productive time
- Inexpensive
- Climate Controlled
- Near your destination
- Safe
- Comfortable
This list was presented during an oral report to management (Ed Goodride). Whereupon, Ed responded, "Let's go!"
"But Sir," mumbled Dweeb, "let's go with what? I've been reading that advertising theory says that people can't assimilate a message that contains seven items."
"They can't what?!" Ed exploded.
"What I mean, Mr. Goodride, is that we should limit our advertising message to at most three statements."
"Well, fine, fine, Dweeb, let's find out which are the most important, and then let's go!"
So, off went Dweeb to measure the impact/importance of each potential advertising statement. Dweeb interviewed enough people of the right type (we won't bother with the sampling stuff right now). It seems that while he was in the third basement, Dweeb had nothing better to do than to read past issues of the Marketing News. By some strange turn of luck, he read an issue dated September 13, 1985 containing an article written by John Morton that described a new technique to help evaluate advertising. This got Dweeb's attention. It was an application of conjoint analysis that included measuring what is termed "interaction" effects. The output from this measurement technique is a score for each attribute. In Dweeb's study, these scores for the seven attributes were obtained:
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Dweeb realized that "safe" has about three times the impact of "near your destination." Also, our boy Dweeb realized that "inexpensive" is about twice as effective as "climate controlled." With this information in hand, he was about to approach Ed Goodride and recommend an advertising platform that emphasized safety, economy, and speed. That is, he was about to when Sally Dumluck put her head through the door. (When we say "through the door," we actually mean that her head penetrated the door!)
"Hiya, Ned! Whatcha up to?" Sally said. While she extracted herself from the door, Ned explained the situation. Sally replied, "Yeah, that's great stuff. Sleazeball--I mean 'Mister' Goodride -should like that. Did you say you were going to recommend the use of the three top scoring attributes?"
Adjusting his pocket protector, Ned nodded and said, "Yes."
"But Neddie, John Morton pointed out that we had to pay attention to interactions as well as the main score for each attribute."
A little bit surprised and ashamed, Ned said, "Oh?"
"Sure, doll, let me show you." Sally looked through the output and came up with Exhibits A and B.
"Neddie, in Exhibit A, the main score for each attribute is shown but so are the interaction effects. You might think that the best two-attribute message would be 'safe' and 'inexpensive.' But look, doll, the best two-attribute message is actually 'safe' and 'fast'!" Dweeb had to admit that Sally had a point when she wrote this:
Safe/Fast 1.0 + .54 + .19 = 1.73
Safe/lnexpensive 1.0 + .73 - .14 = 1.59
"Ms. Dumluck, I see what you mean! The main score for 'safe' (1.0) and the main score for 'fast' (.54) when added together along with the interaction of safe and fast (.19) gives us a score of 1.73. But when we do the same thing for 'safe' and 'inexpensive', the total is 1.59. So we do have to look at the interactions as well as the main scores for each attribute! And that's why you put together Exhibit A, eh?"
"You got it, Tootsie," said Sally.
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"Golly, Ms. Dumluck. I think I understand Exhibit B, too. Now, just let me figure this out. Let's see, hmm... We still have the main effects for each benefit, right?"
"That's right, Dweeb-boy. By-Research, I think you've got it!"
"Okay, I'm on a roll. And I see you still show the interaction effects for the first and second benefits. So, 'safe' is still 1.00 end 'fast' is still .54, end their interaction is +.19, just as before."
"Oh, Dweebie, you're so cute when you're right," Sally said as she patted Ned on the head.
"But now, you've added the interaction effects on the first and third benefits (safe and time [+.12]), along with the interaction of the second and third (fast and time [+.10]). Now, the main effects and the interactions sum to 2.41; and you've done this for other benefits combinations, too. Say, you really were the high school valedictorian, weren't you?"
"Of course, Neddie dear, did you think I was just another drop-dead bod with no brains?" Sally replied batting her eyelashes as she sashayed out the door.
Saved by Sally, Ned Dweeb met with Ed Goodride and recommended the advertising platform of safe, fast, and provides more productive time. "What do you think, Mr. Goodride?" Ned timidly asked.
"Bada-bing, Bada-bang! This should get me in good with the boys upstairs. Glad I thought of it," Ed said through a haze of cigar smoke.
Walking rather than taking the elevator to the third basement, Ned mused, "'Bada-bing, Bada-bang'? Dang, I've got to look that up in the Marketing News!"
The ad agency produced the ads, ridership increased, and Ed Goodride redefined the meaning of sleaze.
A few days later, Ned Dweeb was walking down an alley in the Chicago Loop and saw written on the wall:
If conjoint is your main attraction you'll maximize your satisfaction by showing the gang (bada-bing, bada-bang) the benefits of interaction.
Credits
Original Analytic Thought: John Morton
Limerick: Bob Bisciglia
Artwork: Karen Cullen