Conjoint Analysis-What It Is?

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Conjoint Analysis-What It Is?
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This term can be defined as a strategy that is
used to determine the preferences of various
product features. It is also used to learn how a
price change is able to affect the demand for
goods and services and to determine the chances
for a new product to be readily accepted when
introduced to a market.
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Conjoint analysis eliminates the concept of
directly asking respondents to a survey about
their preferences pertaining to different
products, or asking what do they find most
important in a product. It uses a more realistic
approach of getting the respondents to review
several product profiles.
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Products profiles can be shown in a number of
ways, but the Choice-Based Conjoint survey
technique otherwise known as CBC is the one
thats being used by most people today. With this
technique as it was in the early 1970s, it showed
respondents one product at a time before asking
them to choose. Nowadays the technology the
survey has been improved to show products in
pairs or having a view timer set between each one.
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Participants of a web-based conjoint survey
normally complete between 11 and 33 conjoint
questions in any given sitting. By using first
stage design principles of balance and
independence, the questions are fashioned in a
particular manner. By altering the features that
are presented to the participants and observing
their respective responses, analysts can apply
various formulae to determine what is most
desired in a product and how that will impact
selection.
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Another aspect of a Choice-Based Conjoint survey
involves the use of conjoint market simulators,
which allow research personnel to test several
what-if scenarios. These help researchers to
identify specific products that are competing
against each other and predict the shares of
preference based on each respondents estimated
part-worth score. These simulators can go a step
further in identifying which product is the
so-called best instead of asking them to speak
on how good a particular product is.
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Mobile devices, face to face interviews and the
internet are the most popular mediums used to
conduct thousands of conjoint analysis studies
throughout the year. Several organizations use
the results of this survey to fine tune various
marketing strategies including new product
designs, product reposition, line extensions,
etc. It additionally helps companies to reduce
the cost development and research respectively.
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Based on the amount of money in a budget that is
allocated to development and research, it can be
challenging to come to a conclusion about which
conjoint method is best for you and your company
Nevertheless, they are many options available so
its down to what a company is able to afford
based on financial constraints and expected
results.
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We found the information very useful, so we thank
you for creating such a friendly tool for
conjoint analysis.Co-founder, Statum
HealthPhiladelphia, PA, USAhttp//www.conjoint.
online