Conjoint analysis is a method which presents the respondents with multiple product options with varying features and prices and by observing and analyzing the responses, an organization can conclude which features or prices drive the customer preferences in the market.
It’s a quantitative research method to get feedback from the customers about an upcoming product or feature, giving access to important yet hidden details which might not come to you naturally while doing the research. For example, a car manufacturer looking to understand whether the cost of the cars is justified with the offered features can conduct conjoint analysis. This will give them insights about how competitive their features are and whether they need to compromise on the cost to meet the market standards. Customers not only reveal what they expect from your organization in the future in terms of features and products but they also disclose their current perceptions about your products or features.
Conducting conjoint analysis can get difficult to execute and analyze due to the high level of technicality involved in measurements, especially when it is implemented on a large scale. With the real-time, automated data collection and analysis offered by online surveys, decision making at the organizational level becomes convenient. Those involved in deciding whether the features justify the cost of the product or understanding user preferences can implement this in real-time for a larger audience for new product establishment, market positioning of the product, human resource allocation for it etc.
Due to the high level of complexity involved in this method, dedicated online softwares like QuestionPro are used to implement it.
All about Conjoint Analysis Survey:
Complex features like Conjoint analysis keep getting added to online surveys with each passing year. It is a method that analyzes the popularity and acceptance of product package, design or product marketing.
When launching a new product, feature or service, customer preference for the similar category of products or the price bracket of these products is important. Apart from analyzing the sales data, you might want to run a conjoint analysis survey that will fetch you a better understanding of customer acceptance of similar products. These results can be put to customer classification and will help you create better impactful marketing campaigns.
There are three distinct phases in which a conjoint analysis survey needs to be executed: data collection, derive results and take action.
Online survey data collection: This is the primary stage in which a survey needs to be sent across to all your target users. This way, you can collect information from your users about their thoughts about a current or prospective product. This curated data has to be then analyzed and put in the product pipeline.
Analyze collected data: Carefully analyzing the collected data to understand the respondents’ mindset to frame action items is necessary once you’ve sent out the survey and collected information. Analyze the data collected in form of excel sheets or charts or graphs can be utilized to design a strategy for your product or marketing aspects.
Actions based on insights: Dynamize the business by implementing the results achieved from the conjoint analysis. These actions can be as simple as increasing or decreasing the cost of the product in question and can be as difficult as scrapping a product on the basis of the results obtained from the conjoint analysis.
Benefits of Conjoint Analysis Survey:
- Conjoint analysis is usually used to bifurcate a larger chunk of the target market into smaller chunks on the basis of the results obtained from the survey. This makes branding and marketing a product easy due to the filtered lists created from the main list.
- It’s the perfect medium for respondents to give their feedback on more than one attributes.
- A platform to analyze responses at individual and aggregate levels.
- Easy experimentation medium for aspects like price/features before launching a new product.
- Effective for competitive analysis.
- It’s a very vital tool to understand the brand value and makes it easy to understand how the market share is impacted by the various accords between factors like features, pricing or brands.