Conjoint analysis is one of the widespread uses of quantitative methods in Market research. And it is a tool that allows product features to measure of their possible combinations to determine the proportional importance of each feature in the price of decision. It is a learning of how the changes of price affect the demand of the products or service and make prediction to bring the product to the market. For a making a market research, many of the consumers is unable to give an accurate data to researchers for determine the importance of the product attributes.
For each of the attributes from responses is important. In addition, each individual attributes in segregation are detect dissimilarly than in the combinations discover in a product. It is hard for an investigation respondent to take a list of attributes and psychically institute the prior combinations of them. If the respondent rendered the combination of attributes is in direct viewing as different product sacrificed, then the task will be easier.Whereas, the attributes have respective result and a large number of feasible combinations, so the survey will become unreasonable.
In conjoint analysis, respondent is asked to schedule a list of combinations of the relative product attributes in diminishing order of tendency. Once is has been done, the computer system will use to detect the utilities of diversity value of each attribute according to the respondent’s tendency. It is a competent computing method that does not need to administrate every combination.Also, this method can predict the advantage of combinations that have not been tested.
There are six steps to develop a conjoint analysis. Firstly, to choose a product attributes, such as categories, size or price of the product. Secondly, choose a number level value for each attributes. For example, 5, 10, 20, the higher value represents more liability of the respondent. Thirdly, regulate the relative product as the combination of attributes and put them into a small group of possible products. Fourthly, choose a form of combination attributes to present respondents.
For example, it can be oral, paragraph and graphical presentation. Fifthly, it has to be determining how responses will be converged. First of all using subjective responses, then pool all responses into a unitary utility obligation, lastly state proportion respondents who have alike tendency. Finally, choose the skill to be used to break down the converged data. Use part-worth model to express the utilities of the attributes.
The data is handling by statistical software particularly for conjoint analysis.
