Introduction to Conjoint Analysis
Conjoint analysis tends to be among the most popular stated preference methodologies for developing new offerings, as it helps us understand exactly where the market finds utility in the offering. For example, we could apply conjoint analysis as yet another layer of understanding for our cognitive map, showing us strategic paths and combinations which are perceived to bring the most positive benefit to consumers. While having a consultant perform a full-blown conjoint analysis of the entire cognitive map would likely be prohibitively expensive and require significant sample sizes, conjoint analysis would be very well applied as we choose one or two strategic paths and begin to iterate offerings. In this topic, we will also see what powerful, yet simple software can do to automate both deployment and results of conjoint analysis.
Like many methodologies, conjoint analysis is by no means perfect, but where others attempt to offer a definitive "yes/no/how much" reading for our offering, conjoint analysis tends to be most helpful in showing us "hot spot" attributes and benefits in the offering, and how individual aspects of the offering can increase or decrease perceived utility and value. Please watch the following 4:09 video.
Video: What is conjoint analysis? (4:09)
What is also useful about conjoint analysis is there are quite a few variations and tactics which can be applied to increase validity, ensure appropriate attention from participants, and improve the accuracy of overall findings. In some cases, these variations involve using actual product or credits as the incentive for accuracy, as the participant would actually be receiving the product they choose, or have the right to purchase the product at a certain price.
For one variant of conjoint analysis designed to increase experimental validity, please review "An Incentive-Aligned Mechanism for Conjoint Analysis" by Min Ding.
Options to Structure and Deploy Conjoint Analysis Easily
There are also quite a few reputable software packages that allow us to structure, deploy, and read the results of our conjoint analysis. For a very basic example, Sawtooth Software has made a simplified trial of their Choice-based Conjoint survey tool to allow potential users to try the package.
The video below gives you some feel for the power and usefulness of conjoint analysis software, in this case being the Number Analytics offering. Please watch the following 1:45 video.
Video: Number Conjoint Introduction (1:45)