Conjoint analysis: Definition and How it can be used in your surveys
Conjoint analysis is a statistical survey technique used mainly as a market research tool to identify the pros and cons of the product or service you provide and to measure the value of the features of your product/services. You can get to know the preferability and adaptability of your products to the target audience.
But before jumping into the topic further, let’s make sure about your goals of the survey.
Make sure you are clear about the below mentioned,
- You are determined about the type of study you are going to conduct
- You have found the relevant qualities and attributes
- You have specified the qualities
- You have an idea about the design of the survey/analysis.
Steps to use conjoint analysis:
Once you’ve decided the type of study on whether it will be based on ranking, rating, or choices, you have to analyze the key factors and qualities you wish to have.
For example, you might want this survey to be easily communicable and well defined for your target audience. And you might want them to consist of multiple levels to get better insights.
Identify the critical purpose of your survey and how to use the analysis technique to better use them.
Types of conjoint analysis:
There are several methodologies or types of conjoint analysis, out of which these are more familiar.
- MaxDiff Conjoint analysis
- Full-profile conjoint analysis
- Choice-based conjoint analysis
- Adaptive conjoint analysis
Maxdiff conjoint analysis:
If you are trying to compare two products and find your audience's preference, you can use the Maxdiff analysis method as it is easy to understand and answer.
Maxdiff method is known for its easy interface and accessibility, and hence it makes the conjoint analysis come out with more quality.
Full-profile conjoint analysis:
The full-profile conjoint analysis comes with a product description that helps the participants with decision-making. In addition, it has complete profile data that is convenient to relate, compare and evaluate. With minimal information provided as a description, you can expect a significant survey outcome through this method.
Choice-based conjoint analysis:
Choice-based conjoint analysis is also referred to as discrete choice conjoint analysis. This is an experimental method to understand the buyer's persona. By giving them the right choices, you can know their likes and dislikes and other such behaviors through this method. And you can have an estimated ratio of the features most preferred and those that were least preferred.
Adaptive conjoint analysis:
The choices or options provided in the analysis vary as per the users' answers to the previous questions. It is said to be a more communicative and engaging option as it gets altered based on the user's interest. In this way, the survey results would be more efficient. You can get the correct data for your business through this method.
Why should you use Conjoint analysis?
- Conjoint analysis is a tool to interpret the purchase decisions of your ideal clients/target audience.
- You can get a different perspective of the knowledge you have on your brand based on different kinds of answers and the user's preferences.
- You can bring back the product or services that got the highest rating while improving, upgrading, and then start to market the rest.
Conjoint analysis is not the right fit for you if you are looking for;
- Good market share readings
- Exact valuation of variables
- Less complex designs
- Simplified strategies
- Able to articulate attitudes
- Looking to include more numbers and combinations of attributes
Bonus tip: Use the right kind of combinations to prevent confusion for the respondents.
Customer satisfaction is like finding the best restaurant to take your partner out; harder to find but would be worth the search.
With conjoint analysis, both you and your team can update yourselves regarding the developing and improving market. At the end of the day, if there is no customer, no business! Based on the choices of your audience, you can upgrade to give an edge to your competitors. Do check out our other posts to get the hang of other survey techniques to choose the right fit for you.