Conjoint Measurement

    For which information problems is conjoint measurement the right approach? 
    Which results does a conjoint measurement analysis deliver? 
    How to run a conjoint measurement analysis?
    Do you have any questions regarding conjoint measurement studies? 

• What is the relative importance of the different product features in their distinct levels?
• Which product feature has the highest impact on the purchase decision?
• Which mix of price and product features obtains the highest acceptance?
• Which market share can a new product with specific features achieve in the competitive surrounding?

The utility values are available for each respondent individually. With these utility values it is possible to run market simulations in a second analysis step. For the simulations different products have to be defined with their specific features and the simulation tool calculates the market share for each of this fictive products.

The following table shows the market share of a cordless telephone with the following features in a defined competitive surrounding:

• digital transmission
• with integrated answering machine
• stand by time 60 hours
• 20 quick-dial numbers
• with display at the mobile

For the example the price of the defined product was varied, while all other features of the product and the two defined competitive products remained constant:

The simulation shows again a price barrier for the product with the defined features between DM 390,- and DM 490,-.

Given the structure of the conjoint measurement approach, nearly all conjoint interviews are conducted computer-aided. Not long ago, only verbal descriptions of the product features could be used for the interviews (DOS). Just recently there are new Windows based programs available, which allow also the demonstration of product features via scanned pictures of the product or specific details, short video demonstrations and sound elements. With this new programs the conjoint measurement can be extended from the pure product features to communication aspects, like packaging. Therewith it becomes even more biotic than with the old programs.

A conjoint study contains normally the following steps:

1. Definition of the product features and it distinct levels, which should be integrated into the conjoint. Here one should consider only features which can be modified in reality.
2. Check whether all combinations of product features lead to realistic products. Absurd combinations will be eliminated from the interview.
3. Programming of the questionnaire.
4. Fieldwork: Conducting the interviews.
5. Basis Analysis: Calculation of the utility values of the different product features and their distinct levels.
6. Conduct market simulations.

The costs of such a conjoint measurement study are comparable to conventional studies using paper & pencil interviews. As always, the concrete costs are depending on the sample size and the target definition (how easy to contact).

Here you can request more information, directly.

New: Untiedt Research is the first german institute, which brings the adaptive conjoint measurement online. On www.testraum.de you will find more information on this.