Conjoint analysis is a statistical technique used in marketing research to determine how people value different attributes (feature, function, benefits) that make up a product or service.
The premise of conjoint analysis is that people make trade-offs when they are choosing between products or services. For example, when choosing a new car, a person might consider factors such as price, gas mileage, safety features, and available options. Conjoint analysis helps marketing researchers understand what combination of these factors is most important to consumers and how much they are willing to pay for each feature.
There are several different types of conjoint analysis, but all involve breaking down the attributes of a product or service into separate “levels” and then asking people to rate how much they would like each combination. The ratings are then analyzed using statistical techniques to identify the importance of each attribute level.
Conjoint analysis can be used for many different marketing purposes, such as product development, pricing research, and brand positioning. It is a powerful tool for understanding consumer preferences and making marketing decisions.