Conjoint analysis is a popular market research technique that marketers use to determine what features a new product should have and how it should be priced. It requires research participants to make a series of trade-offs. Analysis of these trade-offs will reveal the relative importance of component attributes. Using a conjoint study you can ascertain a consumer willingness to purchase products at certain price points, and which attributes are most desirable. Knowledge Excel offers an advanced and comprehensive range of trade-off and choice-based conjoint solutions. We simplify the application and apply the right solution to solve each specific business issue.
One of the most important strengths of Conjoint Analysis is the ability to develop market simulation models that can predict consumer behavior to product changes. With Conjoint Analysis, changes in markets or products can be incorporated into the simulation, to predict how consumers would react to changes.
The foundational assumption in Conjoint Analysis is very simple - products are bundles of Attributes. These attributes (Brand, color, price, location, warranty, etc.) have at least two levels , and usually more levels options when presented in a survey
Experimental design principles are used to construct a limited number of different choice sets for testing in the survey. The number of conjoint choice sets and the configurations used are carefully controlled to ensure valid statistical estimation of the relative importance of each level of each attribute.
We prepare both Fixed and Randomized Conjoint designs which is further used in computer assisted conjoint exercises.
In our conjoint designs, we follow below principles:
We broadly have four types of Randomized Conjoint Designs:
We also prepare Advanced CBC Designs, this includes:
At Knowledge Excel, we have the experience to work on various types of Choice based Conjoints like:
Analysis of conjoint data yields a series of scores for each respondent at each attribute level. These scores, known as ‘part-worths’, are a measurement of the ‘utility’ that the consumer associates with a product and its attributes. Each score reflects the value that a respondent associates with each attribute level. Thus we are able to build a product and then calculate the value the consumer finds in that product. By comparing this outcome with other products on the market, we are able to gain a more precise understanding of how consumers actually decide which product to choose.
This will help quantify what is driving the preference from the features and levels, but more importantly, it evaluates and compares each feature and level against one another.
Please mail us at contactus@knowledgeexcel.com to request us for a demo conjoint utilities output.
The simulator is a stand-alone package that allows clients to conduct alternative “what-if” scenarios. Developed in Excel, a simulator is a powerful analysis tool and the most important deliverable resulting from a conjoint analysis project. The market simulator is an effective tool for analyzing consumer preference for different product configurations among a competitive set. By fine-tuning individual product attributes and product price points, clients are able understand whether product preferences will increase or decrease. Simulators transform the utility data from your conjoint study into a tangible tool that you and your end-clients can use. By specifying each level on each attribute of each real or hypothetical product, user defined scenario is created. The computed product utilities are used to estimate strengths of preference in terms of acceptance. This is done by accumulating the individual estimates over respondents to predict aggregated interests in different product concepts. Because it is in Excel, you can easily share it with colleagues and end-clients to maximize use.
