Conjoint Analysis Flashcards
Conjoint Analysis is …
Understanding customer’s preferences for products; breaks down the product in attributes and levels to estimate the preference
Attributes are …
Variables defining the product (size, speed, price)
Levels are …
Each attribute consists of specific levels (EUR 1, EUR 3)
To who to ask for attributes
Customers, salespeople, focus groups
Stimuli …
Consists of all attributes
What experiential design can be used to decide stimuli
Factorial design, where all possible stimuli are considered and levels of each attribute are the same amount
Holdout cases are …
Used in experiment, but not in estimation; used for validation
Utility is …
Preference of the consumer for that combination of attributes
Importance values are …
Measure for the relative importance of the attribute
The results can be validated by …
Face validity (do they make sense), predictive validity (hold-out cases), external validity (predicted vs. actual)
Orthogonal design means …
No correlation among the attribute’s levels
Balanced design means …
Each level of an attribute appears the same number of times
