TMCnet Feature
June 16, 2021

What is Conjoint Analysis?

The success of any business relies on meeting the needs of the consumer and beating the competitor. If you own a company, you may decide to come up with a completely new product or work with what you already have. Either way, one of the most important aspects of owning a business is knowing what features and services your customers care more about.

This is where conjoint analysis comes in. To appeal to your consumer's needs, it's important to gather information about the features, services, and benefits that customers value most. With conjoint analysis software, you can track your customer's preferences so that you know what product or feature to create and then sell. This is usually done through market insight research by which consumer preferences are noted and the data is collected to find insights. Read on to learn how this marketing technique works.

Market Research

At some point, we've all been a customer met with the task of decision-making—whether it's deciding between the new Apple (News - Alert) or Samsung phone, or choosing between a Toyota or Volkswagen. In order for us to choose, we tend to weigh up the pros and cons, the benefits, as well as the valuable features we'll get by choosing one over the other. In order for one product to appeal to customers, you'll need to satisfy their needs. But how do you know what your consumers want?

Conjoint analysis, also known as discreet choice analysis, uses software to gather the preferences of consumers via surveys. However, since survey respondents can easily end up with "survey fatigue" and become bored of answering so many questions, conjoint analysis software is a more efficient approach to understanding your consumer's preferences.

With platforms such as SurveyKing, businesses can create a free online survey builder in order to receive customer feedback and market research. Conjoint analysis allows business owners and marketers to use survey-based research techniques to measure how customers value the individual features of their product or service.

Conjoint Analysis

With a conjoint analysis survey, different features of a product are listed so that the survey respondents can choose the most valuable feature out of the options presented to them. This tells the surveyor several things: Which feature they find most important, as well as how enthusiastic the consumer is about purchasing the product. Conjoint analysis helps to refine the benefits of each feature, product, or service and suggest ways that it can be improved before it's released into the consumer market.

Since most business owners are making educated guesses on what their consumers want from a product, conjoint analysis helps to weed out what consumers find most valuable. For example, hotels may market their services to target specific guests such as holidaymakers or business people. A laptop company might want to know if their consumers prefer faster speed or more storage. With these marketing insights, you can learn to decipher between your consumer's preferences allowing you to thrive in your competitive industry.

Benefits of Conjoint Analysis

For the survey's respondents, market research is much easier if it's a conjoint study rather than a long questionnaire as most people find these tedious and time-consuming. Essentially, conjoint analysis is a choice exercise that is much simpler and a lot quicker to complete. Consumers can do multiple surveys in a shorter amount of time if they are incentivized to do so, and the risk of respondents getting survey fatigue is much lower. This is a major benefit for business owners since consumer feedback is vital for every company's growth.

Conjoint analysis software keeps track of what features are chosen by consumers and gauges the importance of these features according to your target demographic. As a business owner, this allows you to measure the benefits of certain products and services and make improvements or changes if necessary. In a nutshell, the consumer tells you what they're looking for in a product, and you make decisions based on their preferences.

Going forward, market researchers may be more inclined to use conjoint questionnaires in their analysis of product features. It's a tool that is not only growing in popularity amongst respondents but also helps decision-making easier, giving you a much more helpful set of insights for your brand.

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