What is conjoint analysis?

Choice experiment

Conjoint analysis is a research method for measuring, analyzing and predicting customer reactions to new products and services or new features of existing products and services. Choice-based conjoint analysis (CBC), the most common variant of conjoint analysis, exposes respondents to a choice experiment. They are asked repeatedly to make a choice from a number of fictional product profiles that are composed and varied by Arenoe Marketing Intelligence in a systematic way. The actual buying situation the customer encounters in store or on the internet is simulated as realistically as possible.

Survey

In most cases, conjoint measurement uses a survey among a representative sample of consumers to conduct the experiment. Because Arenoe Marketing Intelligence usually composes the product profiles for each respondent individually during the survey, the use of an online questionnaire is desired. The online questionnaire module contains complex algorithms to reduce the number of choice tasks per respondent to a minimum as well as to tune it to his personal preferences. The way this is done is one of the keys to success.

Market share predictions

The analysis of the choices of the respondents results in a detailed mathematical model. This model explains the individual choices of each respondent. Arenoe Marketing Intelligence can then use this model to predict the product choice of customers for each possible product variant. From these, realistic predictions about market share, revenue and profit can be made, among many other applications.