Title: Conjoint Analysis
1Conjoint Analysis
2CONJOINT METHODOLOGY- SUMMARY
- 1. What attributes to include in the study?
- Identify actionable attributes through expert
judgment, consumer survey, or focus groups.
Attributes can be product features/options,
structural characteristics, appearance of
product, and marketing mix variables - Use attributes that the target audiences can
relate to - 2. How many levels of attributes to include?
- Identify discrete and continuous attributes
(continuous attributes can be discretized) - In discrete case, generally can include 3 to 4
levels. Ex Minimum, Maximum, and 1 or 2 levels
in between. - 3. How to get data from consumers?
- Present profiles consisting of combinations of
attribute levels. Each profile is a product/new
concept in the full-profile approach. - Consumers either rank-order or rate profiles .
3- 4. How to minimize profiles presented to
consumers? - Orthognal designs to reduce number of profiles
presented to consumers - Adaptive conjoint to minimize difficult of
conjoint task by using prior information provided
by consumers. Several commercial software, such
as Saw Tooth, are available for this purpose. - Hybrid conjoint techniques may be used to
distribute evaluation task among consumers - 5. What to do with the data collected from
consumers? - Assess relative importance of attributes
- Compute utility associated with each level of
each attribute - Perform simulations to identify good product
designs - 6. How to impact management decisions with
conjoint analysis? - Use graphs to summarize data!
- Translate results to managerially useful indices
such as expected sales or market share for chosen
product concepts - Provide pictorial renditions of chosen concepts
4- 4. How to minimize profiles presented to
consumers? - Orthognal designs to reduce number of profiles
presented to consumers - Adaptive conjoint to minimize difficult of
conjoint task by using prior information provided
by consumers. Several commercial software, such
as Saw Tooth, are available for this purpose. - Hybrid conjoint techniques may be used to
distribute evaluation task among consumers - 5. What to do with the data collected from
consumers? - Assess relative importance of attributes
- Compute utility associated with each level of
each attribute - Perform simulations to identify good product
designs - 6. How to impact management decisions with
conjoint analysis? - Use graphs to summarize data!
- Translate results to managerially useful indices
such as expected sales or market share for chosen
product concepts - Provide pictorial renditions of chosen concepts
5OTHER COMMERCIAL APPLICATIONS
Consumer Non-durables Other Products 1. Bar
soaps 1. Automotive styling 2. Hair
shampoos 2. Automobile tires 3. Carpet
cleaners 3. Car batteries 4. Synthetic-fiber
garments 4. Ethical drugs 5. Gasoline
pricing 5. Employee benefit package 6. Panty
hose 6. Job offers to MBAs Financial
Services Other Services 1. Branch bank
services 1. Car rental agencies 2. Auto insurance
policies 2. Telephone service pricing 3. Health
insurance policies 3. Information retrieval
svcs. 4. Credit card features 4. Medical
laboratories 5. Consumer discount
card 5. Employment agencies Industrial/Business
Goods Transportation 1. Copying machines 1. Air
Canada 2. Printing equipment 2. IATA 3. Fax
machines 3. American Airlines 4. Data
transmission 4. Canadian National
Railway 5. Laptop computer 5. AMTRAK
6Dating Conjoint
- What attributes would one look for in an ideal
mate? - What are the levels of these attributes?
- Would any combinations be unacceptable?
7Dating Conjoint Design
- Attribute 1 Age
- levels 18, 25, 35, 45, 60
- Attribute 2 IQ
- levels low, average, high
- Attribute 3 Build
- levels heavy set, slim, athletic, obese
- Attribute 4 Education
- levels High School, College, Graduate
- Attribute 5 Height
- levels 60, 510, 56, 50