Measuring Buyer Preferences
What's the best way to introduce a new product, or change an existing one?
You could just move forward boldly with a new idea and keep your fingers crossed that it works. Or you could reduce risk by doing market research – before you go through all the trouble of creating something customers don't want or don't like.
Getting a product 'right' involves a lot of variables. The most obvious feature is functionality – how it works. However, other things also play a role in the final purchase decision – such as packaging, promotion, materials, and even where a product is manufactured.
For example, people buy cars to get from point A to point B. The type of car they buy is based on many things, including fuel consumption, styling, reliability, and color. While any of these product attributes may be the primary selling feature, people make decisions by considering all the attributes together.
Getting all of these features in the right combination is pretty difficult if you just rely on guesswork. So, how can you evaluate your goods and services by considering their attributes all together, or jointly? 'Conjoint Analysis' accomplishes exactly that.
What is Conjoint Analysis?
First and foremost, conjoint analysis is a tool that measures ...