Conjoint analysis is the No. 1 research technique employed by world leading brands to measure consumer preferences
Conjoint analysis measures how consumers value features of a product or service
• Research technique developed in early 70s
• Dictionary definition: “Conjoint: Joined together, combined”
• Marketer’s catch-phrase: “Features CONsidered JOINTly“
Consumers make purchasing decisions based on features they either like or dislike about a product or service. Consider how hard it is for marketers to select the right combination of features out of thousands of possible combinations, not to mention assign the right price to generate the highest appeal. In reality many marketers make educated guesses based on historical behaviour as to what features appeal to consumers most. But given the speed at which fads can change, basing any consumer preference assumptions on past performance is highly risky.
However there is a proven way to help marketers sort through the chatter and understand consumer preferences better, and in doing so equipping them to package the right features at the correct levels, priced optimally to ensure the best chance of success. Conjoint analysis is the marketing research technique used by the world leading brands like Coke, P&G and Diageo to predict how products will perform when taken to market, or tweak existing products to maintain or grow market share.
Unlike common Yes/No or "tick the box" survey approaches, with conjoint respondents choose from realistic product options in an attempt to mimic real world purchase scenarios. Conjoint can also be used to provide a quantifiable measurement of elements underpinning a brand’s value perception (vis-à-vis competitors), and help explain movements in customer experience metrics.