Tuesday 6 September 2011

Various Conjoint Analysis: Which one is the best?

Conjoint analysis is one of the terms used to describe a broad range of techniques for estimating the value people place on the attributes or features that define products and services. Discrete Choice, Choice Modeling, Hierarchical Choice, Card Sorts, Tradeoff Matrices, Preference Based Conjoint and Pairwise Comparisons are some of the names used for various forms of conjoint analysis.

There are different types of conjoint analysis:

· Adaptive conjoint analysis:

· Choice based conjoint analysis:

· Discrete choice analysis:

Which Conjoint Methodology is Best?

The answer depends upon the circumstances. However In marketing the Choice-based Conjoint or Discrete Choice Modeling has become the most popular methodology over the last 4 or 5 years.

Advantages of Choice-Based Conjoint/Discrete Choice Modeling/Choice Modeling

1.) More closely resembles the decision process customers make in the market place where they look at all the alternatives available and pick the one they most prefer. It is believed, though difficult to prove, that the more closely a research task mimics real behavior the more valid and reliable the results.

2.) Allows respondent to choose "none of these." In most purchase decisions, one of the alternatives is to walk away without buying anything. Choice-based conjoint allows you to include this response in the model and account for it in the calculation of utilities.

3.) More product/service profiles are seen by each survey respondent because choice-based conjoint typically presents 3 or more alternatives in each choice set.

4.) Easier to calculate attribute interactions like price and brand. Based on aggregate level analyses, attribute interactions can be included without dramatically increasing the complexity of the research design for choice-based conjoint exercises.

Group- HR1

Author- Ankita Kanojia

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