Conjoint Analysis

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Conjoint Analysis

• Design and Application

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CONJOINT 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 .

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• 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

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• 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

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OTHER 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
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Dating Conjoint

• What attributes would one look for in an ideal
  mate?
• What are the levels of these attributes?
• Would any combinations be unacceptable?

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Dating 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