Conjoint analysis (CA) is a statistical method used to study consumer preferences, which allows researchers to determine the best configuration for new or existing products / services. With this type of analysis, the attributes of products are compared, to identify those that have the greatest impact on purchasing decisions. The most important objective of the joint analysis is to measure the consumer's degree of preference for one of the competing products / services under the assumption of an integrated assessment of all the attributes that make up the product.
- Joint analysis helps the respondent concentrate on his own preferences.
- The advantage of the method is the ability to identify hidden factors that affect consumer behaviour.
- Using this method, you can identify the optimal combination of product properties, leaving the product in an acceptable price category.
Areas of useJoint analysis is used in marketing, product management to determine preferred prices, to understand the consumers' perception of a new product design, to evaluate the effectiveness of advertising and to develop services:
- Choosing the optimal product configuration: for instance, determination of the best combination of the truck engine economy and the capacity of a truck, or finding a "compromise" between the number and complexity of the built-in functions of a room air conditioner and the electricity consumption of an air-conditioner.
- Choosing the optimal combination of price, package size, packaging design for a new product: most often this kind of use of Conjoint Analysis is used in the FMCG product market, for instance, the choice between several packaging options, package size and the price of each design and size option.
- Determination of the importance of the attributes of goods or services: the study of the priorities of consumers on key attributes of goods or services, for example, service, prices, image, quality and range of products for the retail network.
- Segmentation of the consumer market: the continuation and development of the above form of using Conjoint Analysis. Segmentation of the market dependent on consumer preferences, for example, estimating the size of a segment that prefers a service or a segment that is sensitive primarily to price etc. Such information allows choosing the most attractive market segments (based on their relative size and income level) and developing a strategy for working with selected segments (based on information on consumer preferences for these segments).
Study designThe product, or service should be described as a set of attributes. Respondents demonstrate a series of products, their prototypes, mock-ups, or images containing combinations of attribute levels (all or most significant). Respondents should make a choice, give preference and assign ranks or ratings to the presented product options. The measure of similarity / difference of the presented options, is such that the consumer could easily compare them and give preferences between the variants.
As a rule, groups of 8-10 people evaluate each card on a metric scale (for instance, the probability of buying, the degree of preference, the likelihood of recommending a given product, etc.) or on a nominal scale. Usually the answer to the question, would the respondent buy this product or not, is yes or no. Therefore, the participants in the experiment must be the actual potential users of the product or service.
Besides the questioning techniques, the data for Conjoint Analysis can also be collected using computer simulators and also, obtained during marketing trials.
Other methods of research, used by NAFI