In this presentation, we examine the performance of the hierarchical Dirichlet process (HDP) model in a high-dimension conjoint exercise for an adhesive product used to join materials together in home construction projects. We relate preferences for attribute-levels to the types of projects undertaken and alternative joining materials used (e.g., nails, screws and fasteners). We examine the implications of alternative models of heterogeneity for optimal product line design, and show that our proposed model can better identify the optimal number of products to offer and provides better consumer insights for market opportunities.
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