Applying Conjoint Analysis To Study Consumption Preference For Diesel Engine Of Dump Truck

The growth of mining dump truck market is slowing down recently, which leads to lower demand of diesel engine and more intensive competition. To understand customers' needs accurately, this research employs conjoint analysis to study the market of diesel engine for mining dump truck to examine the consumption preference and purchase decision-making behavior of OEMs at the present market and provide referential support for strategic marketing decisions. In the survey, 5 OEMs that account for more than 90% of market share in the mining dump truck market were selected. The OEMs were interviewed with questionnaires by fax and telephone conference. This study considers four aspects that OEMs deem important when they make their purchase: brand, after-sale service (the in-site time of service engineer and parts after receiving the service request), price and over-haul cost, and a conjoint analysis model is built based on this information.The research results show that the individual model and the group model both fit the data at an acceptable level. There are generally two types of OEMs in the present market: the price sensitive type and the brand sensitive type. The price sensitive OEMs pay close attention to the price and focus on the middle and low-end market. The latter OEMs focus on high-end market. They pay more attention to brand and after-sales service. Based on the research results, the following recommendations are made to help strategically develop the market of diesel engine for dump truck. To broaden the product lines and develop substitute products or parts for the imported products to serve the low-end market; to increase the effort for brand building and clarify the positioning of different brands owned by the same company; to strengthen the after-sale service for the high-end market.