Developing a new micro credit product based on conjoint analysis

Abstract

Presently most of the microfinance providers follow qualitative methods for product development, therefore in most of the cases products were developed without knowing how much utility it is going to provide to a customer. The study tries to develop a microcredit product following quantitative method, namely conjoint analysis and analyzed whether new product provides more utility than the existing one or not. To reach the goal a survey was conducted among the borrowers of Safe Save, a Dhaka based NGO which provides flexible credit to the urban slum dwellers. The survey result depicts huge difference between new product and the Safe Save's product. New product provides more utility than the existing one.