Conjoint analysis and market models

Understanding value drivers for products using conjoint analysis

Conjoint analysis is a powerful way of getting under the skin of customer decision making. The aim is to show realistic looking products and services created from a mix of potential features (attributes and levels) in order to understand what customers would choose. By capturing those choices we can build models of customer preference and better understand customer value.

Our 'all about conjoint' resources section provides descriptions and demonstrations of what conjoint analysis is, and how it works, and conjoint hints and tip.  You can also play with and explore conjoint design using our Conjoint Explorer which allows you to see different types of conjoint analysis and applications, and create and explore your own conjoint designs.

Using conjoint analysis for product management and price setting

The skill with product-based planning and research is in making understanding realistic choices that people make, so any research should genuinely reflect the decisions a purchaser would make.

When customers are choosing a product, they face alternative offers and consider a range of products and options when making a choice. Those choices will include price and feature trade-offs - whether buying a brand, a physical product, or a service or software.

The product management team needs to understand how customers choose and how to create 'bundles of value' to meet different purchasing groups. This can include discovering the drivers of value, but also ideas like creating product ranges for Good, Better, Best with appropriate features and prices.

Using conjoint analysis for segmentation

One benefit of conjoint analysis is that you see what people prefer. This makes it an ideal tool for understanding market segments based on needs.

Frequently, a single customer will fit into different segments depending on their needs. A business traveller will have different needs for a hotel, compared to a leisure traveller, but they may both be the same person. Understanding 'use cases' gives a deeper insight into market segments and is an ideal task for conjoint analysis.

Building for real market conditions

For any new product, businesses need to understand real market potential. Conjoint and market research needs to be triangulated with other market data, including the views of your product and sales teams.

Our survey platform Cxoice was designed to allow us to build realistic conjoint and trade-off tasks that can be shown on-screen in surveys, use as online shopping mock-ups, or can be used over the telephone as part of our Web-assisted Telephone Interview where we show and talk at the same time.

Our experience

We have been doing Conjoint analysis or Discrete Choice Modelling for more than 25 years, with software, tools and published papers on conjoint analysis and trade-off techniques.

We design research to our clients needs, working with you to scope out the attributes and levels, but also designing to reflect reality so the decisions we analyse are realistic.

We also help product design teams use the conjoint design process to flesh out strategic options and to translate features into benefits that can be used in concept tests, to design evalutions and on to market forecasting and range planning.

Tell us about your product roadmap and we can design and build the right research solution to get the right price points, to get the right feature balance, and to estimate demand and take-up.

For help and advice on conjoint analysis or trade-off research contact info@dobney.com

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