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Conjoint analysis

12 July 2016

People make complex decisions on a daily basis

Whether we are in the supermarket, or buying a new home, we all make choices every day, and must take changing factors into account that can affect these decisions. This often occurs subconsciously, and we will make a decision without really having to think about it too long.

 

What is a conjoint analysis?

Conjoint analyses generate information on the choices people make, and the factors that influence these choices. For each of these factors, we determine the extent to which they affect the decisions consumers make. A conjoint analysis does not examine preferences, let alone behavioral intentions. A conjoint analysis simulates the behavior people display when they make decisions.

 

How does it work in practice?

To start with, we ‘unravel’ a product or service, exposing the characteristics that play a role in the choices consumers make. For example, in buying a plane ticket, people consider aspects such as airline, price, class and departure time.

In a conjoint analysis, we randomly vary these characteristics so that constantly changing products are presented to the respondent, just as would be the case in daily practice, such as on a comparison website.

For each characteristic, the analysis calculates the importance of that characteristic, and the role it plays in the choices consumers make.

 

How can conjoint analysis benefit you?

As a producer, you will acquire insight into the importance of each characteristic in relation to the ultimate choice consumers make.
You will learn what your most successful product formula is in terms of potential market share.

 


Questions?

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