What is Conjoint Analysis?
Conjoint Analysis is one of the most widely used quantitative tools in marketing research these days. It is an advanced analytical technique to systematically understand customers’ decision making process, by quantifying the “perceived value” of product features to a customer.
What are the Advantages of Conjoint Analysis?
- Avoids the problem of “Everything is Important” to a customer
- Helps in assessing the true wants and needs of a customer
What are the applications of Conjoint Analysis?
Conjoint Analysis can be used in any area where ‘Decisions’ need to be studied. Few key applications are:
- Market Segmentation
- New Product Development
- What-If scenarios to evaluate Marketing Strategies & Pricing Decisions
- Competitive Analysis for Simulating Market Shares
- Conjoint can be applied in multiple decisions in life of a common man
Which Conjoint Technique should be used?
There are multiple techniques such as Traditional Conjoint, ACA, CBC, Max-Diff, MBC etc. The choice of relevant technique depends on multiple factors such as:
- Competitive context
- If product is a high involvement category or low involvement category
- Number of attributes one wants to study
- Type of survey population & sample size
- The purpose of Conjoint i.e. product development, segmentation etc.