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Conjoint analysis (in marketing)

Conjoint analysis, also called multiattribute compositional models, is a statistical technique that originated in mathematical psychology. Today it is used in many of the social sciences and applied sciences including marketing, product management, and operations research. The objective of conjoint analysis is to determine what combination of a limited number of attributes is most preferred by respondents. It is used frequently in testing customer acceptance of new product designs and assessing the appeal of advertisements. It has been used in product positioning, but there are some problems with this application of the technique.


The basic steps are:

Information collection

Respondents are shown a set of products, prototypes, mock-ups or pictures. Each example is similar enough that consumers will see them as close substitutes, but dissimilar enough that respondents can clearly determine a preference. Each example is composed of a unique combination of product features. Rank-order preferences are obtained. The responses are codified and input into a statistical program like SPSS or SAS.


The computer uses monotonic analysis of variance or linear programming techniques to create utility functions for each feature. These utilty functions indicate the perceived value of the feature and how sensitive consumer perceptions and preferences are to changes in product features.



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