Do you want to identify great marketing strategies? If nodding, conjoint analysis is a perfect approach in identifying such strategies. It also comes in handy when looking for insights revolving around competitive landscapes and target markets. After all, conjoint analysis is an effective statistical method when determining how customers feel about and value the different features of a service or product. It helps manufacturers and sellers know precisely what drives customers to settle for their products. Since they are quite specific, they are quite helpful when dealing with complex choices. This piece discusses how conjoint analysis helps simplify complex choices. Read on!
- Breaks a product into levels and attributes
In most cases, people love certain aspects of a certain product and hates others. Therefore, asking about the product may not give the designer or manufacturer insight into what’s perfect or needs improvement. Under such circumstances, a respondent may say that something is good despite certain flows or your product is bad, yet it has many good things. Do you see why it is important to break it down into levels and attributes? For instance, a car can be broken down into price, year, engine, brand, and type. Equally important, one should ensure that each attribute has various levels. They include different prices, engines, types, brands, and years.
- Present the various profiles to your respondents
When it comes to conjoint analysis, you won’t be asking the participants if they prefer a certain product over the other? Instead, you will present the different product profiles to them and ask them which one is better than the other. One must admit that the context is quite realistic. Consequently, participants will base their responses on the different features and not the popularity of a brand or personal opinion.
- Analyze the responses
Using your analytical skills, observe the various responses based on various features. As you observe, deduce which features attract more respondents and their impact on the buying decision of various participants.
It is a perfect way of estimating the tradeoffs that customers make when buying a product or service. The researchers decide those estimates, basing them on a psychological level. After all, there are many attributes they have to factor in all at once. After all, that’s usually the reality when it comes to purchases. Besides identifying the obvious tradeoffs, the analyst will also take note of others that aren’t apparent.
By studying the various attributes deeply, creating segmentation based on different needs are also realizable. Therefore, the right conjoint analysis can be a game-changer.
It is evident that conjoint analysis is perfect for simplifying complex choices. It avoids asking participants which product they like or dislike directly. They also don’t focus on the importance of the different features. On the contrary, their focus is how the different factors affect the buying decision of various buyers, which can be insightful to any company. The results help them understand the features that might be costing them, customers. Information is power, and that’s what conjoint analysis offers respondents for more informed responses, and that’s the way to go.