Conjoint Analysis Design and Application CONJOINT METHODOLOGYSUMMARY 1
- Slides: 7
Conjoint Analysis Design and Application
CONJOINT METHODOLOGYSUMMARY 1. What attributes to include in the study? n Identify actionable attributes through expert judgment, consumer survey, or focus groups. Attributes can be product features/options, structural characteristics, appearance of product, and marketing mix variables n Use attributes that the target audiences can relate to 2. How many levels of attributes to include? n Identify discrete and continuous attributes (continuous attributes can be discretized) n In discrete case, generally can include 3 to 4 levels. Ex: Minimum, Maximum, and 1 or 2 levels in between. 3. How to get data from consumers? n Present “profiles” consisting of combinations of attribute levels. Each profile is a product/new concept in the “full-profile” approach. n Consumers either rank-order or rate profiles.
4. How to minimize profiles presented to consumers? n “Orthognal designs” to reduce number of profiles presented to consumers n “Adaptive conjoint” to minimize difficult of conjoint task by using prior information provided by consumers. Several commercial software, such as Saw Tooth, are available for this purpose. n “Hybrid conjoint” techniques may be used to distribute evaluation task among consumers 5. What to do with the data collected from consumers? n Assess relative importance of attributes n Compute utility associated with each level of each attribute n Perform simulations to identify good product designs 6. How to impact management decisions with conjoint analysis? n Use graphs to summarize data! n Translate results to managerially useful indices such as expected sales or market share for chosen product concepts n Provide pictorial renditions of chosen concepts
4. How to minimize profiles presented to consumers? n “Orthognal designs” to reduce number of profiles presented to consumers n “Adaptive conjoint” to minimize difficult of conjoint task by using prior information provided by consumers. Several commercial software, such as Saw Tooth, are available for this purpose. n “Hybrid conjoint” techniques may be used to distribute evaluation task among consumers 5. What to do with the data collected from consumers? n Assess relative importance of attributes n Compute utility associated with each level of each attribute n Perform simulations to identify good product designs 6. How to impact management decisions with conjoint analysis? n Use graphs to summarize data! n Translate results to managerially useful indices such as expected sales or market share for chosen product concepts n Provide pictorial renditions of chosen concepts
OTHER COMMERCIAL APPLICATIONS Consumer Non-durables 1. Bar soaps 2. Hair shampoos 3. Carpet cleaners 4. Synthetic-fiber garments 5. Gasoline pricing 6. Panty hose Other Products 1. Automotive styling 2. Automobile tires 3. Car batteries 4. Ethical drugs 5. Employee benefit package 6. Job offers to MBA’s Financial Services 1. Branch bank services 2. Auto insurance policies 3. Health insurance policies 4. Credit card features 5. Consumer discount card Other Services 1. Car rental agencies 2. Telephone service pricing 3. Information retrieval svcs. 4. Medical laboratories 5. Employment agencies Industrial/Business Goods 1. Copying machines 2. Printing equipment 3. Fax machines 4. Data transmission 5. Laptop computer Transportation 1. Air Canada 2. IATA 3. American Airlines 4. Canadian National Railway 5. AMTRAK
Dating Conjoint n What attributes would one look for in an ideal mate? n What are the levels of these attributes? n Would any combinations be unacceptable?
Dating Conjoint Design n Attribute 1: Age – levels: 18, 25, 35, 45, 60 n Attribute 2: IQ – levels: low, average, high n Attribute 3: Build – levels: heavy set, slim, athletic, obese n Attribute 4: Education – levels: High School, College, Graduate n Attribute 5: Height – levels: 6’ 0”, 5’ 10”, 5’ 6”, 5’ 0”
