Models for calculating preference shares
There are two models for calculating market shares under
:Share of preference model, which is appropriate for low-risk or frequently purchased products: FMCG, software, etc, where there is a strong impulse buying behaviour in play. This model is applicable in the vast majority of applications. By default, Conjointly will set the type of product to be low-risk, where people tend to make rational decisions on all purchases.
First-choice model, which is suitable for high-risk or seldom purchased products: education, life insurance, pension plans, etc, where the stakes are high, life-or-death situation such as chronic medication options, and it will use up a large portion of respondent’s disposable income. In high-risk simulations, people tend to select the single most preferred product even when it is only marginally more preferable than the next best product.
![The source of business function The source of business function](https://conjointly.com/img/type_of_product.png)
In most cases, both simulation models produce similar results. However, at times, simulations results will differ greatly from actual market shares, hence adjustments may be needed.