Conjoint Analysis

What is Conjoint Analysis?

Conjoint analysis helps product developers determine the best mix of attributes for a new product, how the product should be priced, and how well the product will perform versus its competitors.

If you were to ask most people what attributes they want in a product, they would most likely request all of the best attributes at a very low price. Conjoint analysis surveys force customers to make trade-offs between various product attributes. By analyzing customers’ preferences for products with certain price and feature combinations, we can reveal what is most important to them in making their purchase decisions. We can then model consumers’ behavior under various “what if” scenarios to predict their preferences for a wide variety of hypothetical product configurations, whether they were explicitly shown in the survey or not. We can also assess how much customers are willing to pay for a given attribute. These results provide a wealth of valuable information to the product development team.

Conjoint surveys are generally conducted on the web, unless it is difficult to find relevant respondents over the Internet, or the stimuli cannot be adequately conveyed electronically. In such cases, it is possible to conduct conjoint surveys in person using computer-aided survey software or questionnaires on paper.

The AMS Difference

When undertaking a conjoint study, there is often a conflict between the goals of respondents – perhaps a quick and simple survey experience – and those of the R&D, marketing and engineering staff, who often have a long set of detailed, technical questions they would like to have answered. Making sure that the attributes used in the survey meet the team’s goals is critical to the success of the project, and requires a deep knowledge of how customers make their purchase decisions for a given product or industry.

Applied Marketing Science has a structured methodology – proven over the course of two decades – for dealing with this potential conflict. We first interview customers to identify the most important customer needs, and then use the House of Quality to relate those needs to specific product attributes. This approach ensures that we include the most important determinants of actual purchase behavior among the conjoint attributes. With decades of experience in building and applying prize-winning marketing models, AMS can guide clients through the conjoint process to produce meaningful and actionable results.

How Can We Help?

Contact us to learn more about our approach to conjoint analysis, and how it can help you develop your next product. Click here to read more about Conjoint Analysis, including an example of a conjoint simulator.