Prestige Institute of Management And

Research
Gwalior
Topic: Conjoint Analysis

Presented by:
Presented to: Prof. Jitendra Anshul Singh
Mudit Jaiswal
Nikhil Karotiya
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Content
 Conjoint Analysis
 Conjoint Design
 Types
 Advantages
 Process
 Conclusion
 Conjoint Analysis
Conjoint analysis is a form of statistical
analysis that firms use in market research
to understand how customers value
different components or features of their
products or services. It’s based on the
principle that any product can be broken
down into a set of attributes that
ultimately impact users’ perceived value
of an item or service. 3
 Conjoint Design
 We can describe a product or service in terms of several
attributes further broken down into several levels. E.g., a
Mobile Phone may have attributes like screen size, color,
brand, price, and so on, and levels for screen size maybe
5 inches, 5.5 inches, or 6 inches.
 Attributes should be relevant to managerial decision-
making, have varying levels in real life (at least two
levels), be expected to influence preferences, be clearly
defined and communicable, and not exhibit strong
correlations (price and brand are an exception).
 Levels of attributes should be unambiguous, mutually
exclusive, and realistic.
 The profile is a unique combination of attribute levels. 4
 Types

2. Rating-based conjoint: Also called

Score-Based conjoint analysis.
1. Ranking-based conjoint: Also called
Respondents give ratings to the product 3. Choice-based conjoint: Respondents
Preference-based conjoint analysis.
profiles they are shown. Ratings can be choose which option to buy or
Respondents rank the profiles from best to
on a scale of 0 to 5, 0 to 10, or 0 to 100. otherwise select. The choice-based
worst. It is similar to best-worst scaling,
Respondents must allocate scores so method is the most theoretically sound,
but respondents must allocate rankings to
that the scores add up to a certain practical, and common practice.
the intermediate options.
number (e.g., all scores in each question
must add up to 100).

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Advantages
It helps researchers estimate the tradeoffs that consumers make on a psychological level when
they evaluate numerous attributes simultaneously.

Researchers can measure consumer preferences at an individual level.

It gives researchers insights into real or hidden drivers that may not be too apparent.

Conjoint analysis can study the consumers and attributes deeper and create a needs-based
segmentation.

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 Conjoint Process

 Describe your research objective and the target product. List down the research
questions to answer.
 Create the combination or product profiles (Specify Attributes & Levels).
 Select the controlled set of “product profiles” or “combination of attributes &
levels” for the consumer to choose from.
 Design the Questionnaire (Based on the abovementioned types) and collect
responses.
 Perform conjoint analysis
 Report and Interpret results 7
 Conclusion…

 Conjoint analysis is an effective

market research technique that helps
businesses better understand their
customer’s preferences and make
educated decisions about product
creation, pricing, and marketing
strategies.
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