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Article: Key Things to Know About Conjoint Analysis by Jim Whaley
Published 10/17/2021

Conjoint analysis is a survey-based advanced research tool designed to understand aimed how people make complex choices. Choices that typically require trade-offs are made every day. Often without each of us giving it a second thought.

If you were to stop and consider the route you take to work or which weekend getaway you are going to settle on, these choices are mental conjoint surveys that include several elements to consider before making a choice. Subconsciously, one individual is more feature-focused, while another is more price-conscious. Finding out which element a consumer considers as trivial and essential is the main aim of conjoint research analysis.

Importance of conjoint analysis

Researchers prefer conjoint analysis for their survey to determine consumer values. It includes creating, distributing, and analyzing survey questionnaires among consumers to demonstrate their purchase decisions for response analysis. Contact the market research experts to learn how to optimize better with conjoint analysis and remove less crucial features to reduce cost but maintain sales. 

Traditional rating surveys are unable to place values on products' different attributes but conjoint analysis can sift through the gathered data to determine the perception of those choices. Data analysis offers you a chance to peek into your target customer’s minds to see what they like most about your brand.

Best time to conduct conjoint analysis

  • New product or service launch
  • Repackaging of existing products and services
  • Optimizing / Prioritizing Feature Sets
  • Price Optimization

Advantages 

  • Researchers can estimate adjustments that customers made on a mental level while evaluating multiple characteristics at the same time.
  • Researchers gain insight into concealed, unapparent drivers.
  • Researchers are capable to measure consumer preference at individual levels.
  • Conjoint analysis can help to perform an in-depth study of the consumer’s behavior and create need-based dissection. 
  • Ideal to measure brand name values in relevance to competing brands.
  • Measure price sensitivity.

Drawbacks

  • Must not include multiple attributes. Challenging to analyze end profiles when there are multiple attributes.
  • It is a hard task to collect respondents' responses. 

Conjoint analysis types

  1. CBC [Choice-based conjoint analysis] 

It asks customers to replicate the genuine market’s purchase behavior including which items the participant would choose given the criteria associated with features and price range. 

  1. ACA [Adaptive conjoint analysis]

ACA should be used whenever the number of features and attributes exceeds what is possible in the choice-based scenario. It is a great analysis for segmentation research and designing products, but for pricing optimization, it is not as effective or useful. 

How to level up conjoint analysis insights?

Price Elasticity – Knowing your upper and lower price limits relative to the perceived value proposition. How much is too much before is not worth it? And how much is too little before it's not worth it? Is also true. You can uncover details using a conjoint survey before investing considerably in developing a new product. 

Conjoint is a part of the insights but capture the entire story including consumer preference, cohesive pricing, branding, or go-to marketing strategy using an appropriate survey questionnaire. It will help you stretch a survey result to its full potential.