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Market Analysis Model

This is a consumer behavior model that evaluates the sales and potential performance of products in a competitive environment. The model has the following general features:

  • It allows for an easy analysis of the market acceptance of new products in a competitive environment.
  • It forecasts over time the sales and market potential of all products in the market segment being considered.
  • It aids the product planner in easily identifying the key characteristics of a product, market segment and the competition.
  • It is easy to add a new product for the purpose of analysis. It is also easy to change parameters of the product, such as price, engineering characteristics (for example, energy savings, if the product was a water heater), etc. None of the above changes require a new market survey or new data assessments.
  • The data requirements are flexible and, if desired, can evolve over time. That is, the model can easily use managerial assessments or the results of a market research study or any combination thereof. Thus, additional data obtained at a later date can be easily incorporated into the model.
  • The model is based on new advancements in consumer behavior modeling that have been getting rapid acceptance in the market place.

The following is a description of three applications of the market analysis model:


A Market Analysis System for Conservation Technologies.

This model was built for the Department of Energy to aid them in their analysis of the market
acceptance of solar water heaters and heat pumps. The system was designed with a specific focus on forecasting the demand for alternative energy water heaters in the residential market sector. The model was based on explicit behavioral models of individuals in the consumer population. The data was obtained from an interactive computer survey. Individual consumer behavior was modeled explicitly using a probabilistic choice model whose parameters are estimated from the market survey using the technique of conjoint analysis. Factors such as consumer awareness and market inertia are treated explicitly. A sample of the questions answered by the model included:

  • What pricing strategy should be used?
  • How will tax credits affect solar water heater sales?
  • How will advertising affect sales?
A Market Analysis System for Information Storage and Retrievable Technologies.

This model was designed to help management formulate product development and marketing strategies for the introduction of a new product for information storage and retrieval. The data used for the model was management assessments based on surveys. Performing a complete market research study was postponed to a later date. A sample of the questions that could be answered included:

  • What pricing strategy should be used?
  • How will the introduction of competing emerging technologies affect the market? How rapidly will this occur?
  • How will faster recording speed or additional features affect product sales?
  • How will advertising and/or sales force coverage affect sales?

A Market Analysis System for Brake Products.

This system was built to serve as a planning tool for aiding management in the analysis of important issues surrounding the market introduction of disc brakes. The system is similar to the previous two models. The data used for this model was supplied by the management staff and was a combination of assessments and the results of surveys. Typical questions asked of the model were:

  • How would profitability be affected by product characteristics such as performance, lifetime and weight? How would profitability be affected by the product launch date?
  • How sensitive are the sales projections to various assumptions about the market place,
    products and the competition?
  • What pricing strategy should be used?
  • How will advertising and/or sales force coverage affect the market?
Commercial Software
Disk Drive Related
Prospect Evaluation
User Interface
Tracking Software
Mail/Invoice Programs
Levedaged Leasing
Distribution Systems
Planning Models
Scheduling Models
Software Design
Market Analysis Model
Resource Balancing / Site
Evaluation Of Systems
Desktop Publishing
Copyright © 2004 - 2005 Stanford Business Software, Inc
Designed and implemented by Imagine India Software Services Pvt. Ltd.