Conjoint Analysis

Presenter Name
Introduction
Conjoint analysis is a form of statistical
analysis that firms use in market
research to understand how customers
value different components or features
of their products or services. It’s based
on the principle that any product can be
broken down into a set of attributes that
ultimately impact users’ perceived
value of an item or service.
 1. Idea Generation
2. Idea Screening
Stages in 3. Concept Testing
4. Marketing strategy development
New Product 5. Business Analysis
Development 6. Product development
7. Test Marketing
8. Communication

9/3/20XX Presentation Title 3

Concept Testing
Concept Testing
PART A PART B
Communicability usage frequency Conjoint Analysis
Believability
Need Level
Gap in Market
Price Points
Usage Rate
Only after completion of Part A then it shifts to part B

5
Concept
• On way of perceiving Products/brands may be to visualize them as bundle of attributes
• Eg : Camera : Bundle of attributes may include picture quality, shutter speed, size, price
Tyers : Bundle of attributes may include safety, tread life, ride, quality, price
• While understanding consumer preference for each attribute we may conduct a research.
• During research we may ask respondents how much of each attributes would hey prefer in
product
• Such a question invariably may lead to the respondent indicating that he would prefer the
best level possible of each attributes.
Conjoint analysis examples
To better understand the use of conjoint analysis in business, it’s helpful to study some practical examples. 

A simple example by Our group on how consumers choose a restaurant for dinner. In this example, the features
studied were distance to the restaurant, relative prices and the restaurant’s atmosphere.

According to Group, diners make their decision by subconsciously weighing the different factors and choosing
the restaurant that best meets their needs. In this example, the first restaurant is close to the diner and inexpensive
but offers a subpar atmosphere. The second restaurant may be farther away and more expensive, but it has an
excellent atmosphere.

“If you chose Restaurant No. 2, the atmosphere element obviously carried more weight in your eyes than the
other two elements,”

For restaurants, this information is critical in determining how to design their spaces, what prices to charge, and
where ideal locations are.
Thank you