Conjoint analysis refers to a modern statistical method that is used in performing marketing research and it is mainly used to analyze the needs of a customer. Basically, conjoint analysis is used to determine the different attributes that different consumers employ when valuing particular products. |
How it works: Also referred to as the most advanced marketing analysis tool, conjoint analysis is the most advanced technique that marketers use in order to tap the minds of their targeted market segment. The procedure is not at all complicated because you only need to offer a given number of selected respondents a few choices to make; in other words, you simply let them pick a product and when they have selected a particular product, you ask them questions that will reveal the basis of their choice for that particular product. You want find out whether their choice was made on the basis of quality, price range, lack of an alternative or any other factors; all you want to do is to find their criteria for making that particular buying decision.
The purpose: Once you have conducted your conjoint analysis what you will be left with are the results all of which will enable you to evaluate the utility of your product; in other words you want to know the real value of your product as far as the consumer is concerned. When it comes to asking your customers exactly what they think and feel about your product, there is no better tool than conjoint analysis to help you get the right information. Whether you want to know exactly how the product is doing, whether the price is right or if there are any changes that you should consider, conjoint analysis is really the way to go. In addition to telling you exactly what consumers think about your product or service, conjoint analysis can help you formulate your future based on the results that you get.
Know the people: One of the best ways to ensure that you remain relevant and successful in business is to know your customers; the more you know about them the better you should be able to fulfill their desires. You especially want to know just what your customers want or what their preferences are with regards to their needs so you can deliver goods that will address those needs; this will definitely make you more efficient in your niche market. Conjoint analysis ensures that your company uses its resources in a discrete way; in other words, conjoint analysis is basically a refined marketing strategy. A well done choice-based conjoint survey is an important marketing tool that enables you to enter inside your customer’s head, get to know them and plan your product or service accordingly.
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