Menu-Based Conjoint Analysis
Conjoint analysis is now a widespread survey strategy in market research.It is a method used to uncover the feelings a respondent has for the features and attributes of a product or service.
There are several models of conjoint analysis,including choice-based conjoint analysis, full profile conjoint analysis, adaptive conjoint analysis and self-explicated conjoint analysis. Each of these models has its strengths and weaknesses.
A relatively new conjoint analysis model that is gaining momentum in the marketing world is menu-based conjoint analysis.
The theory behind menu-based choices is to allow the respondent to package their own product or service. In a survey, the respondent would be shown a list of features with associated prices. The respondent then has a choice of what they want in their ideal product while keeping price as a factor in their decision. The presentation of the features is important in that there is proper randomization and balance.
If there are different prices that a feature can be offered at, each possibility should be shown. Below is an example of a menu based conjoint analysis question.
The outcome of menu-based conjoint analysis is that we can identify the trade-offs the consumer is willing to make.
We can discover trends indicating must-have features as well as characterizing luxury features.
The analysis of this approach is done primarily with counts and percentages; counting the number of times the feature for a specific price was selected in regards to the number of times it was presented. Another key piece of information that comes from menu-based choices is the comparison of what was selected and what was left out.
If feature A for $100 was included in the menu question but feature B for $100 was not, it can be assumed that this respondent prefers feature A over feature B.
In conclusion, menu-based conjoint analysis is becoming a more and more popular way to test the trade-offs people are willing to make. The highlight being that it is a more engaging and interactive process for the survey-taker than your typical choice-based conjoint analysis question.
It allows the respondent to feel more in control of their selections. This, along with providing a relatively easier analysis model, makes menu-based conjoint analysis a great fit for product querying.