dr. michael r. hyman conjoint analysis. 2 what is conjoint analysis? answer: family of techniques...
Post on 22-Dec-2015
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Dr. Michael R. Hyman
Conjoint Analysis
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What is Conjoint Analysis?
Answer:
Family of techniques that model choice by decomposing overall preference or evaluation in terms of the relative values of the components or attributes to respondents
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Applications
• New product design
• Fine-tune marketing mix
• Find segments of consumers with homogeneous preferences
• Simulate markets: Which brand configuration performs best against current and likely competitor brands?
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Examples and Basic Issues Associated with Attribute-based
Conjoint Analysis
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Example #1
Packaged Soup Attributes
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Full Profile Stimulus Card
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Utility Coefficients
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Example #2
Utility Values for Three PC Attributes
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Preferences for Different Combinations of Brewing Time, Capacity, and Cost in a Coffee Maker
Example #3
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Respondent’s Ordering of Various Product Descriptions
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Resultant Derived Utilities
Compute/Estimate these Values
Some Arbitrary Attribute Utility Values and the Resulting Utilities for Various Alternatives Under an Additive Combination Rule
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Attributes Should Be…• Determinant• Easily measured and communicated• Controllable by the company• Realistic• Such that there will be preferences for
some levels over others• Compensatory• As a set, sufficient to define the choice
situation• Without built-in redundancies
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How Many Levels per Attribute?
Must consider:
• Levels and their range should be meaningful, informative, and realistic to consumers and producers
• Avoiding absurd configurations
• Marginal increases in levels can greatly increase respondent’s task
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Which Data Collection Method?
• Full profile: Show complete list of attributes– Limited to 6-7 attributes (Example #1)
• Pair-wise: Show pairs of attributes in matrix; each cell rated from most to least preferred (Example #3)– Lacks realism– Inconsistent responses likely
• Hybrid (ACA): Indicate– Attribute desirability at each level– Attribute importance– Full profile evaluation of a limited subset of product
concepts
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Conjoint Exercises from Dr. Tom Novak, Vanderbilt University
• Airline Travel Preferences
• Movie Theatre Preferences