Are You Ready for Conjoint?

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We all wish we could predict the future: especially what will grow the revenue at the businesses we work for. Many research professionals work day in and out to simulate, predict and prevent any business from spiraling downhill. Conjoint analysis is pursued when a business or organization is trying to determine the best combination of products or services to sell that will generate the most profit. With the end goal of making more money. there are many businesses that perform conjoint analysis to look for answers and directions. Knowing if your business is ready for conjoint analysis is important before taking on the challenge.

The main objective of conjoint analysis is to determine what combination of a limited number of attributes is most influential on respondents choice making and decision processes. Here are three questions you need to ask:

  1. Do the features and attributes or levels appear to be concrete? Features and attributes should be set in stone, otherwise more qualitative or quantitative research is needed to help define the features and attribute list for your conjoint analysis.
  2. Do the options appear to be clear and simple to understand? If you don’t understand the options, how will your consumer? If you are having a difficult time understanding the options, you may want to use presentation text or pop up information hyperlinks to define the features or levels. You could also redefine features and attributes using the vocabulary familiar to your target audience.
  3. What is the estimated sample size? Based on the number of completes needed, you should decide ahead of time which choice-based conjoint to run. Run random, D-optimal and import your own designs to see what will work out best.

Conjoint analysis consulting can be very expensive and may not answer the questions you were posing. Using tools where you can design and control your own conjoint give you the quickest turnaround and biggest ROI in the long run.

Additional Tips:

  • Perform no more than 20 trade off exercises
  • Define no more than five to six attributes
  • Keep the ranges simple

If you are considering approaching conjoint analysis or already run this research, check out this recent webinar that provides an overview of conjoint definitions, how to setup conjoint, conjoint design options, sample sizes, and a demonstration of conjoint.

Gina Yeagley is the director of marketing at Survey Analytics – a “DIY style” set of research tools that enable businesses to listen to their consumers through 4 channels: surveys, mobile apps, panel and analytics.

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