Conjoint analysis is a survey-based advanced study aimed to know how people make challenging choices. Choices that need trade-offs are made daily without their realization or knowledge.
Even making simple decisions like which toothpaste to choose or determine which flight to book are mental conjoint surveys that include several elements to consider for making a choice. Subconsciously, one individual is more feature-focused, while another is more price-conscious. Finding out which element a consumer considers as trivial and essential is the main aim of conjoint research analysis.
Importance of conjoint analysis
Researchers prefer conjoint analysis for their survey to determine consumer values. It includes creating, distributing, and analyzing survey questionnaires among consumers to demonstrate their purchase decisions for response analysis. Contact the market research experts to learn how to optimize better with conjoint analysis and remove less crucial features to reduce cost but maintain sales.
Traditional rating surveys are unable to place values on products’ different attributes but conjoint analysis can sift through the gathered data to determine the perception of those choices. Data analysis offers you a chance to peek into your target customer’s minds to see what they like most about your brand.
Best time to conduct conjoint analysis
- Launch new product or service
- Repackage existing products and services
- Gain actionable insight for improving competitive edge in the market
- Understand what customers liked about your brand
- Overhaul pricing structure
Advantages
- Researchers can estimate adjustments that customers made on a mental level while evaluating multiple characteristics at the same time.
- Researchers gain insight into concealed, unapparent drivers.
- Researchers are capable to measure consumer preference at individual levels.
- Conjoint analysis can help to perform an in-depth study of the consumer’s behavior and create need-based dissection.
- Ideal to measure brand name values in relevance to competing brands.
- Measure price sensitivity.
Drawbacks
- Cannot include multiple attributes. It is tricky to analyze end profiles when there are multiple attributes.
- It is a hard task to collect respondents’ responses.
Conjoint analysis types
- CBC [Choice-based conjoint analysis]
It asks customers to replicate the genuine market’s purchase behavior including which items they would choose under given criteria associated with features and price range.
2. ACA [Adaptive conjoint analysis]
ACA is used where the features and attributes number exceed then what is possible in the choice-based scenario. It is a great analysis for segmentation research and product deigning but not to determine an ideal price.
How to level-up conjoint analysis insights?
How much more or less will the majority of potential customers approve to pay for a specific feature or design? You can uncover details using a conjoint survey before investing considerably in developing a new product.
Conjoint is a part of the insights but capture the entire story including consumer preference, cohesive pricing, branding, or go-to marketing strategy using an appropriate survey questionnaire. It will help you stretch a survey result to its full potential.
Conjoint analysis is great for businesses to identify consumer behavior and take action for positive growth!