Conjoint Analysis - Introduction and Basic Methodology Flashcards
Introduction to Conjoint
What are the potential purposes of a conjoint analysis?
Product Design, Pricing, Product Entry Selection, Market Simulation
How would you measure consumer preferences?
Surveys
How would you use the preference data?
To see the utility of various attributes and design/price/release products off of that
What is the output of a conjoint?
Respondent’s value system (utility)
What are the key advantages of a conjoint?
- Avoids Everything is Important
- Reveals consumer’s “true” wants and needs
- Measure preference on individual, segment or market levels
How do you determine the total value of a product?
sum the sub-values (partworths)
A product is a bundle of….
attributes
A consumer prefers the product that delivers the….
greatest total value to him/her
What do you calculate with Part-worths?
- utlity and choice prediction
- assess attribute importance
- assess willingness-to-pay (WTP) for attribute levels
Profiles definition
The possible products that you can make with the attribute levels
Partworth definition
normalized utility (dorothy’s deduced definition)
How to calculate attribute importance weight?
- Calculate the partworth range.
- sum all of the partworths.
- divide partworth per each attribute by the sum of each partwoth
How to calculate the dollar value of a utility? (in order to determine the WTP of one product over another)
(Price range)/(Utility range for price) = price per a utility
What is a regression in conjoint used for?
use regression to determine the partworth which is later used for determineing the utility of each profile
What does CBC stand for?
Choice-Based Conjoint
