Conjoint Analysis: Is it right for you?

Conjoint analysis is a statistical technique used in market research that allows analysts to determine how people value different attributes of products or services. The technique is also known as discrete-choice modeling, choice-based conjoint analysis, or preference-based conjoint analysis.

Analysts use conjoint analysis to understand how people make trade-offs between different attributes of products or services. For example, analysts might use conjoint analysis to understand how people trade-off price, quality, and features when choosing a new car. Conjoint analysis can also be used to understand how people trade-off different features of a service, such as the price, quality, and convenience of different airline routes.

There are two main types of conjoint analysis: full-profile and partial-profile. Full-profile conjoint analysis presents respondents with all of the possible combinations of attribute levels, while partial-profile conjoint analysis only presents a subset of all possible combinations.

Full-profile conjoint analysis is typically more expensive and time-consuming than partial-profile conjoint analysis, but it can provide more detailed and actionable insights. Partial-profile conjoint analysis is less expensive and time-consuming, but it can provide less detailed and actionable insights.

Some of the pros of using conjoint analysis in market research include:

1. Conjoint analysis can provide detailed insights into how people value different attributes of products or services.

2. Conjoint analysis can be used to understand how people make trade-offs between different attributes of products or services.

3. Conjoint analysis can be used to understand how people trade-off different features of a service, such as the price, quality, and convenience of different airline routes.

Some of the cons of using conjoint analysis in market research include:

1. Conjoint analysis can be expensive and time-consuming.

2. Conjoint analysis can be complex, and analysts need to have a strong understanding of statistics to use the technique effectively.

3. Conjoint analysis may not be appropriate for all types of products or services.

I have found that using conjoint analysis in my own work is fun and worth the extra time it takes to learn the statistical process.