Conjoint Analysis Model

What you put in... What you get out...
  • Customer ratings of a set of real or potential product offerings, defined by their key attributes
  • Market share of existing products
  • New product profiles
  • Customers' preferences and responses to new products
  • Relative worth of product attributes
  • Optimal product design
  • Market share estimates for alternative products
  • Drivers for purchase choices
  • Customers' willingness to pay for product attributes
  • Potential incremental revenue from new offerings/features
 
conjoint

The Conjoint Analysis model is widely employed for designing new products. It is a procedure for measuring, analyzing, and predicting customers' responses to new products and to new features of existing products. It enables companies to decompose customers' preferences for products and services (provided as descriptions or visual images) into "part-worth" utilities associated with each option of each attribute or feature of the product. Firms can then recombine the part-worths to predict customers' preferences for any possible combination of attribute options. Firms can use conjoint analysis to:

  1. Design new products that maximize customer utility.
  2. Forecast sales/market share of alternative product bundles.
  3. Identify market segments for which a given product concept has high value.
  4. Identify the "best" product concept for a target segment.

Associated Videos

The following video(s) are archived recordings of previous webinars discussing the Conjoint Analysis model.These videos are intended for instructor viewing only as many times they discuss actual business case solutions.

Videos are only available for Registered Instructors

Technical Note - Conjoint Analysis Model

The Conjoint Analysis model technical note is a supplement to the material provided in the Principles of Marketing Engineering. This note provides additional analytic background to the model and may be freely distributed to your students.

Conjoint-Analysis-Technical-Note-thumb

To view other technical notes, please visit our Technical Notes page.

Business Cases - Conjoint Analysis Model

The following business cases are available to demonstrate the Conjoint Analysis Model using Marketing Engineering for Excel software:

  1. Forte Hotel Design Case - Using the Conjoint Analysis model, students must determine the best design for the range of rooms that the new Forte hotel chain should be providing in its new location.
  2. Durr Environmental Case - Using the Segmentation and Conjoint Analysis models, students evaluate the potential of a new market entry with one or more offerings.
  3. Kirin USA Case - Using Segmentation, Positioning, and Conjoint models, students determine what new beer Kirin should develop to increase beer sales in the US.