A Conjoint Modeling Method of Horizontal and Vertical Product Differentiation Based on Transformation of Markets

Conjoint modeling for horizontal and vertical product differentiation took horizontal product differentiation and vertical product differentiation into account in a conjoint model. The aims of this paper were summing up and analyzing the existing conjoint modeling methods and putting forward a new conjoint modeling method. In this paper, the existing conjoint modeling methods were classified into two types, the conjoint modeling method of dividing consumers into large groups and that of applying econometric tools. The analyzing process of the former was so complex that its development was very constrained, while the latter was so dependent excessively for econometrics tools that it would be not helpful for the development of the economic theories of product differentiation. Thus, a new conjoint modeling method, the conjoint modeling method based on transformation of markets was put forward in this paper