CONJOINT ANALYSIS

PRESENTED BY:
NIDHI SHARMA
Outline
Introduction
Definition
Conjoint analysis decision process
Areas of application
Models
Introduction
Metric/ Non- metric responses conversion using an interval scale
Examples-

This
This

OR
THIS
DEFINITION
Measures consumer preferences for alternative
product concepts.
Helps derive utility value attached by customers to the
product attributes.
Hypothetical models proposition.
Helps estimate market share and profits
Contd.
Psychometrics
Marketing research
Conjoint is becoming very much removed from theoretical
roots i.e hypothetical models to
 Numerical measurement of behavior
 Factorial designs instead of fractional factorial designs
 Moving from non-metric to metric
 Research Problem
Define Stimuli (factors and levels)
Basic model form

Full profile Trade off Pairwise

Data Collection
Conjoint Analysis Select preference measure
Decision Process Survey Administration
Assumptions

Select estimation technique

This technique requires a lot of
upfront work to think through
Evaluate results
the design, data collection, and
analysis options. Interpret results

Validate

Apply results
Areas of application
1. Find the product with the optimum set of features
2. Determine the relative importance of each feature in
consumer choices
3. Estimate market share among products
4. Identify market segments
5. Evaluate the impact of price changes or other
marketing mix decisions.
Models
Decompositional model—An individual’s overall
preference or evaluation for a product is
decomposed.
Best suited for understanding consumers
reactions
Evaluates predetermined attribute combinations
that represent potential products or services.
Compositional vs. Decompositional
Compositional
Y = A1 + A2 Collect A1 and A2 and relate it to Y.
Estimate weights to create a predictive model
Decompositional
Y = A1 + A2 Collect Y and relate it to A1 and A2 which are
already fixed, and determine weights.
Concept exemplified
Green & wind’s illustration
3 package designs (A,B,C)
3 brand designs (x, y, z)
3 prices (1,2,3)
Guarantee of the product (y/n)
Derive utility for all attributes b/w 0 to 1.
Higher utility stronger preference.
Factorial design combinations
(3*3*3*2)=54 combinations possible.
THANK YOU
QUESTIONS???