Conjoint Analysis is an advanced market research technique that gets under the skin of how people make decisions and what they really value in products and services. Conjoint analysis is perfect for answering questions such as “Which should we do, build in more features, or bring our prices down?” or “Which of these changes will hurt our competitors most?”

Every customer making choices between products and services is faced with trade-offs. Is high quality more important than a low price and quick delivery for instance? Or is good service more important than design and looks?
For businesses, understanding precisely how markets value different elements of the product and service mix means product development can be optimized and aspects such as pricing tuned to customer’s willingness to pay for specific features.

Conjoint Analysis is a technique developed since the 1970s that allows you to work out the hidden rules people use to make trade-offs between different products and services and the values they place on different features. By understanding precisely how people make decisions and what they value in your products and services, you can work out the optimum level of features and services that balance value to the customer against cost to the company. (more…)