Conjoint Analysis - Summary

Conjoint Analysis - Summary

Applications
Conjoint analysis is used to predict the buying or usage of a new product, which still may be in concept form. It also is used to determine the relative importance of various attributes to respondents, based on their making trade-off judgments.


Inputs
The primary input is a list of attributes describing the concept. For each attribute the various levels need to be described. Respondents make judgments about the concept either by considering two attributes at a time (trade-off approach) or by making an overall judgment of a full profile c:" attributes (full-profile approach).


Outputs
A value of relative utility is assigned to each level of an attribute. Each respondent will have her or his own set of utilities, although an average respondent can be created by averaging the input judgments. The percentage of respondents that would most prefer one concept from among a defined set of concepts can be determined.


Assumptions
The basic assumption is that people evaluate concepts by adding up their evaluation of the individual attribute levels of the concept. It is assumed that the individual attributes are not excessively redundant and that there are no interactions between attributes.


Limitations
In the trade-off approach the problem is that the task is too unrealistic. It-difficult to make trade-off judgments about two attributes while holding all the others constant. In the full-profile approach the task can get very demanding, even for a motivated and conscientious respondent. There is a very real limit on the number of attributes that can be used, especially in the full-profile approach.

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