Question

Topic: Student Questions

Does Conjoint Analysis Work For You?

Posted by Anonymous on 8/18/2007 at 1:34 AM ET 400 Points
Hi everyone,

I'm doing a presentation to discuss on conjoint analysis with my cohort.

Conjoint analysis started in the 70s due to strong influence of behavioral science (Primarily psychometric and mathematical psychology)

(Together with conjoint analysis, Multidimensional scaling, perceptual mapping and cluster analysis where also introduced during that time) Just abit of history to share :)

Basically what I understand so far is that : it's trying to answer the basic question : Why does consumers prefer one brand over another?

The 4 techniques used are (I read so far..):

1) Full profile technique
2) CASEMAP procedure
3) Hybrid techiniques where respondents perform self explicated evaluations
4) Adaptive conjoint analysis (Sawtooth software)

This is my peronal summary of from some readings. What I would like to ask is:

1) Did I mention something wrong?

2) Do you guys use conjoint analysis? If yes- Which type do you use & do you use it stand-alone or with other mktg tools? If no - why? (also may i ask which industry find this analysis useless )

Basically, I'm interested to understand "real-life perspective" towards conjoint analysis from marketing practitioners in various industries. So I can try to give good recommendations to my class during my "Relevance to Managers" part, rather than just telling them what research thinks how it helps managers. :)

Thanks for your time reading my lengthy question.

Sincerely,
Benny







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RESPONSES

  • Posted by dmmarathe on 8/19/2007 at 8:22 AM Accepted
    Conjoint analysis is used in product design category.Suppose the product to be launched is a ballpoint pen. The attributes considered important are Price, Ink colour & nozzle diameter.If each attribute has 3 levels then in all 27 combinations can exist.Conjoint analysis can be used to identify the best combination to be used for designing the product
  • Posted on 8/19/2007 at 8:42 AM Author
    Thanks dmmarathe for you insights :)
  • Posted on 8/20/2007 at 9:53 PM Accepted
    Hi Benny -

    First, in getting at the main issue of why consumers prefer a brand over others, there are many other techniques that can and have been used. For example, one technique, perceptual mapping, or biplots, allow the end-user to observe how respondents perceive different brands at the same time on a variety of attributes. Another technique is asking consumers to rate brands on scales of performance and importance and performing a gap analysis. Addtionally, there are qualitative techniques, such as focus groups, that provide in-depth insight into consumer and brand preference.

    Second, in terms of conjoint, I have seen it applied successfully in many cases. For example, a financial institution was considering offering a debit card to consumers and used conjoint to determine how to brand the card, what interest rate to offer, other features, etc. Conjoint doesn't necessarily answer the question of which brand is preferred, only the package that reflects the degrees to which consumers are willing to trade off on product features to maximize their product preference.

    Hope this helps!!

    Joy
  • Posted on 8/20/2007 at 10:31 PM Author
    Thanks Joy! You are right, I made a mistake in making the brand preference statement. It's more about trade off on a product ^_^
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