Cutting Edge Marketing Analytics: Real World Cases and Data Sets for Hands On Learning

5. A Practical Guide to Conjoint Analysis

Introduction

Conjoint analysis is a marketing research technique designed to help managers determine the preferences of customers and potential customers. In particular, it seeks to determine how consumers value the different attributes that make up a product and the trade-offs they are willing to make among the different attributes or features that compose the product. As such, conjoint analysis is best suited for products that have very tangible attributes that can be easily described or quantified.

Although the history of conjoint analysis can be traced to early work in mathematical psychology,¹ its popularity has grown tremendously over the last few years as access to easy-to-use software has allowed ...