Patient monitoring equipment was sold by modules, by our client so customers can tailor make their own bundle. However, which modules/features would customers pay most for? How could our client obtain maximum benefit from each feature, all of which had very similar manufacturing cost base?
1200 online interviews with clinicians in A&E, ICU,NICU and General Ward were conducted in 6 countries using a conjoint methodology. The aim was to discover low and high values given to each of the features of the modules and bundles using a basic model of a patient monitor and adding different features to make it more or less sophisticated.
The definition that our client had of a basic patient monitor differ from that of our sample. Features such as touch screen were considered basic. Pricing of package bundles variables was 20% lower than the price used for sales forecast by our clients. However, the price of some of the key individual features was considerably higher than expected. Hence our client decided to drop the idea of feature bundling packages and instead work a tailor made program per type of customer.