Conjoint analysis is a strategy that provides multiple product options to the respondents that have varying prices and features. The businesses observe and analyze the responses, and conclude what prices or features drive the customer likings in the market.
Let’s learn more about this strategy and its advantages in the business.
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About Conjoint Analysis
Conjoint analysis is a quantitative method that businesses use for the assessment of their services, and products and finds out how would consumers perceive them. In this method, the products are disintegrated into distinct features and attributes that are presented to people to provide ratings on a scale.
This is a beneficial method that offers insightful information to businesses about how consumers form buying decisions. The business uses the insights to develop market models and enables forecasting in various regions of business.
Conjoint analysis is considered to be a highly popular tool for conducting market research. It is also an advanced-level exploratory technique that is used to determine the way people make buying decisions and the factors they use to place value in several services, and products. The technique has been broadly used for the analysis of products and services since the 1970s. It is an alternative technique for discrete choice estimation.
Phases of conjoint analysis
There are mainly three different phases in which the analysis survey is executed. These are:
- data collection: the survey is sent to target users to collect information about user’s thoughts about a product
- derive results: the business carefully evaluates the gathered data to understand the mindset of respondents and frame necessary action steps
- take action: In this step, the business implements the results obtained using the conjoint analysis.
Advantages of Conjoint Analysis Survey:
Here are some of the prime benefits of using a conjoint analysis survey.
- Due to the filtered lists made using the main list, Conjoint analysis makes it easier to advertise and brand a product.
- It is a perfect way for respondents to provide their valuable opinion on one attribute.
- It serves as a platform to examine responses at aggregate as well as individual levels.
- Easy experimentation medium for features and price aspects before the launch of a new product.
- This analysis is beneficial to perform competitive analysis.
- It is an important tool to learn about the brand value and understand how the market share gets influenced by several accords such as pricing, brands, or features.
Complex features such as conjoint analysis are often added to online surveys with every passing year. It is a technique that analyses the popularity and acceptance of product packages, designs, or product marketing.
Apart from analysing the sales data, you also might want to carry out a conjoint analysis survey that will surely get you a better clarity of customer acceptance of similar products. These outcomes can be used for customer classification and will help you create better impactful marketing campaigns.