The Power of Conjoint Analysis - Insight into preference, choice and trade-off
This is a free textbook offered by BookBoon.
Imagine the scene: you go to a retailer to buy a new hi-fi. You see all the great brands, all at different prices, some are available ex-stock, outputs differ... you are confronted with choice....
“I like X, but it’s the most expensive, and it’s not available ex-stock”
“The Y is a strong brand, cheaper than X but not as powerful”
You are starting to make trade-offs to enable you to decide what to buy.
Marketers need to understand this process. One tool available is conjoint analysis, which analyses this snapshot of behaviour by deriving the utility or value a consumer places on each element of the proposition
Welcome to the world of choice and how you position your product in the competitive marketplace.