CONJOINT ANALYSIS

SUBMITTED TO: SUBMITTED BY:

DR. MAHAVIR SHUBHAM MITTAL
ASST. PROF. ROLL NO.55
CLASS MBA SFS (F)

UNIVERSITY SCHOOL OF MANAGEMNET

KURUKSHETRA UNIVERSITY, KURUKSHETRA
CONJOINT ANALYSIS
 Conjoint analysis is a statistical marketing research
technique that helps businesses measure what
their consumers value most about their products
and services. For example, a TV manufacturer
would want to know if their customers value
picture or sound quality more? Or, do they value
price more than picture quality.
DEFINITION
 Conjoint analysis is a multivariate technique
developed specifically to understand how
respondents develop preferences for any type of
object.

Also known by:-

 Multi- attribute compositional modeling
 Discrete choice modeling
 Stated preference research
USAGES OF CONJOINT ANALYSIS
 Product planning and design
 Market segmentation based on the utility
structures.
 Accommodating the conflicting interests:-
 Buyers want all of the most desirable features
at lowest possible price.
 Sellers want to maximize profits by:
 Minimizing thecosts of features provided
 Providing products that offer greater overall value
than the competitors.
COMPANY’S OBJECTIVE
 How our product/service compares to our
competitors and how we can best optimize
the value we give to the customer?

By Conjoint Analysis, we can total up the

utility value our product is giving the
customer and compare it to the value for the
competition.
EXAMPLE
PHONE A PHONE B
(OUR PRODUCT) (COMP. PRODUCT)

WEIGHT 200g (15) 120g (35)

BATTERY LIFE 21 hours (15) 10 HR (10)
PRICE RS 5000 (25) RS 8000 (15)
TOTAL UTILITY 55 60

Utility values are in brackets.

STEPS IN CONJOINT ANALYSIS
 FORMULATING PROBLEM
 CONSTRUCTING STIMULI
 Pair wise approach- two different attributes are
evaluated at a time until all the attributes are evaluated
 Full Profile approach- all attributes are evaluated at a
time.
 DECIDING THE FORM OF INPUT DATA
 Metric data- respondents give ratings
 Non- metric data- respondents gives ranking
 INTERPRETING RESULTS
 ASSESSING RELIABILITY AND VALIDITY
APPLICATIONS OF CONJOINT
ANALYSIS
 OPTIMUM PRODUCT DESIGN
 SWOT ANALYSIS
 MARKET SEGMENTATION
 ESTIMATING CUSTOMER LEVEL BRAND EQUITY