Conjoint-Measurement For which information problems is conjoint measurement the right approach? Which results does a conjoint measurement analysis deliver? Market simulations  How to run a conjoint measurement analysis? Do you have any questions regarding conjoint measurement studies? For which information problems is conjoint measurement the right approach? Conjoint measurement is the ideal approach to define the optimal mix between price and product  features during the product development. But conjoint measurement can also be used when products  which are already launched should be optimized regarding the features. The conjoint analysis answers  principally the following questions:  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? Which results does a conjoint measurement analysis deliver? The primary output of a conjoint measurement analysis are utility values of the different product  features in their distinct levels. In the following table you will see an example of a cordless telephone for  private users. This table shows, that the product acceptance is influenced most by the product features integrated  answering machine and price. In addition a price barrier at 240,-- € becomes obvious.    Market simulations 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:  o digital transmission  o with integrated answering machine o stand by time 60 hours o 20 quick-dial numbers  o 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 190,-- €  and 240,-- €.  How to run a conjoint measurement analysis? 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).   Do you have any questions regarding conjoint measurement studies? Here you can request more information, directly. 
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