In this day and age, brand is always being talked about in marketing.  We always hear “how valuable is the brand?”  How much influence does the brand name have in consumer’s buying decision?  Does the brand name have more impact than the product?  How do we answer these questions?

The answer is conjoint analysis.  Through conjoint analysis, researchers can evaluate the power and pull that a brand has in consumer’s decisions.  When brand is included as one of the features in the conjoint design it will get cycled through the scenarios as part of different bundle offerings.

Here is an example of how brand can be included in conjoint analysis study:

Brand Texas Roadhouse Applebee’s Chili’s Outback  Steakhouse
Steak 14oz  Rib-eye 15oz Sirloin 10oz Sirloin 12oz Rib-eye
Wait Time 1 Hr 15 minutes 30 minutes 30 minutes
Price $20 $14 $13.50 $15

Above you can see the features (Brand, Steak, Waite Time and Price) and levels of our conjoint analysis example.  If we just want to test these bundles, we can have the respondents pick between or rank these offerings.  This we give us an idea of what is the most preferred package.  However, the best way to test brand value is to mix and match the brands names with the features of the other brands, especially price.  This will give us the understanding if consumers are loyal to a certain brand even if they are offered an inferior package for a higher price.  As we present multiple scenarios of alternating the brands, we might have questions like this:

Brand Chili’s Applebee’s Outback  Steakhouse Texas Roadhouse
Steak 14oz  Rib-eye 15oz Sirloin 10oz Sirloin 12oz Rib-eye
Wait Time 1 Hr 15 minutes 30 minutes 30 minutes
Price $15 $14 $13.50 $14

If we go through enough scenarios, we will be able to determine which brand has the most value or utility.   Conjoint analysis allows us determine what percentage of people prefer one brand to the next.  Also, through conjoint analysis we can evaluate how much more a consumer would pay for a particular brand.