Conjoint Analysis

From QualtricsWiki

Conjoint analysis is one of the most widely used advanced techniques in marketing research and allows the researcher to predict choice share for evaluated stimuli such as competitive brands. When using conjoint analysis, the researcher is concerned with the identification of utilities—values used by people making trade-offs and choosing among objects having many attributes and/or characteristics.
The typical sequence that one goes through to implement a conjoint study involves seven steps:

1. Identification of the problem, along with dimensions of the product to be studied. How many attributes are considered and what are the levels of each attribute?
   
2. Develop the study protocol including all contact, sampling and follow-up protocols. Also develop the survey and associated visual aids, products, graphics, etc. that are to be used.
   
3. Develop the questionnaire and then pretest the survey and data collection activity. Evaluate the process and revise until you are satisfied with the approach, instrument, and the methodology.
   
4. Using one of a variety of data collection procedures described below, collect the data.
   
5. Process the data to derive at the individual respondent level estimates of the part-worths of each person’s utility function.
   
6. Segmentation Analysis: The matrix of respondent by attribute-level part-worths may then be related to other subject background data in an effort to identify possible market segments based on similarities in part-worth functions.
   
7. Build and Run the Choice Simulator using a set of product configurations that represent feasible competitive offerings. These product profiles are entered into a consumer choice simulator, along with the earlier computed individual utility functions. Choice simulators differ, in the simplest case each respondent’s individual part-worth function is used to compute the utility for each of the competing profiles.