Conjoint Analysis

Conjoint analysis is a statistical technique that is used in research to determine how people value different characteristics of a product or a service.

The objective of conjoint analysis is to determine what combination of a limited number of attributes has the most influence on the choice or decisions of the respondents.

Controlled set of potential products or services are shown to respondents and it is analyzed how they make preferences between them. Each product or service presented to respondents is described by a number of attributes. For example, a TV is presented by attributes like: screen size, screen format, brand, price etc. Each attribute can be broken down to several different levels (for example, screen format can be LED, LCD or Plasma).

Therefore, respondents are shown a set of products, prototypes, or images created by the combinations of all levels or only key attributes and they are asked to choose, rank or grade products.

The main advantages of this approach:

• Evaluates the psychological processes of narrowing the choices that consumers make while evaluating several attributes together.
• Measures preferences at the individual level.
• Reveals the true or hidden motivators that may not be very obvious to the respondents themselves.