Conjoint Analysis in Marketing Research

Fundamentals – Methods – Applications – Critical Assessment

Seminar Paper , 2011 , 26 Pages , Grade: 1,3

Communications - Public Relations, Advertising, Marketing, Social Media

"Conjoint analysis has become one of today’s most widely
used marketing research tools.
It goes beyond simple surveys, providing a more realistic approach to understanding customers attitudes, opinions, and behaviors."
(Orme, 2010, p. 7)

The author Orme (2010, p. 7) emphasises in his book the growing popularity of conjoint analysis in marketing research. According to Orme (2010, p. 1) the consumer preferences are changing constantly with an increasing speed. Therefore many marketing managers ask themselves, how they could asses client preferences? Which product characteristics are most important to the customer and what price brings the maximum profit?

From Wilcox’s (2003, p. 1) point of view conjoint analysis gives answers to these most critical questions of marketing research. The conjoint analysis is a marketing research technique designed to help managers determine the value system of clients and potential customers (Wilcox, 2003, p. 1). Introduced as a fundamental measurement method by the mathematical psychologists Luce and Tukey (1964, p. 1) more than forty years ago, conjoint analysis presents combination of features in product profiles and ask people to rank or make choice among of them. Finally, the results can be used for new product design, targeting, pricing and market segmentation (Dolan, 1990, p. 1).

However, there arises the question what is conjoint analysis really and why it has become so popular in contrast to other marketing research techniques? In order to answer these questions, section 2.1 defines the terms marketing and market research and outlines the contrast between them. Section 2.2 gives an overview of different preference measurement techniques before it deals with the conjoint analysis itself. Chapter 3 presents the main chapter of this assignment. At first, it gives a brief overview of the role of conjoint analysis in the marketing concept. The next two sections illustrate an exemplary conjoint analysis survey and show the usage of conjoint analysis for the design of marketing strategies. Moreover chapter 4 discusses the advantages and disadvantages of conjoint analysis. Finally chapter 5 summarizes the basic insights and gives a short perspective.

Inhaltsverzeichnis (Table of Contents)

• 1 Introduction
• 2 Fundamentals
  • 2.1 Fundamentals of Marketing Research.
    • 2.1.1 Market and Marketing Research
    • 2.1.2 Product and Customer Value System.
  • 2.2 Fundamentals of Marketing Research Techniques
    • 2.2.1 Preference Measurement Techniques
    • 2.2.2 Conjoint Analysis
• 3 Conjoint Analysis
  • 3.1 Role of Conjoint Analysis in Marketing Research
  • 3.2 A Conjoint Analysis Survey
    • 3.2.1 Stage 1 - Problem Definition and Attribute List.
    • 3.2.2 Stage 2 - Development of a Survey Design Plan
    • 3.2.3 Stage 3 - Execution of the Survey.
    • 3.2.4 Stage 4 - Information Analysis
    • 3.2.5 Stage 5 - Presentation of Findings
  • 3.3 Application of Conjoint Analysis for Marketing Strategies
• 4 Discussion
  • 4.1 Strengths of Conjoint Analysis
  • 4.2 Criticisms on Conjoint Analysis
• 5 Summary and Prospects

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This assignment aims to provide an overview of conjoint analysis, a powerful technique for understanding customer preferences and its role in marketing research.

• Fundamentals of marketing research and the importance of understanding customer value systems.
• Various preference measurement techniques and the unique value proposition of conjoint analysis.
• The role of conjoint analysis in informing marketing strategies, product design, pricing, and market segmentation.
• Advantages and disadvantages of using conjoint analysis in marketing research.
• Applications of conjoint analysis in the real world and its potential for future development.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1 introduces the concept of conjoint analysis, highlighting its growing popularity in marketing research. It emphasizes the need to understand constantly changing consumer preferences and how conjoint analysis helps answer crucial questions about customer value systems.
• Chapter 2 lays the groundwork by defining key terms related to marketing and market research. It differentiates between various preference measurement techniques, ultimately focusing on conjoint analysis as a powerful tool for understanding customer preferences.
• Chapter 3 delves into the practical application of conjoint analysis. It outlines the role of conjoint analysis within the broader marketing concept and provides a step-by-step guide to conducting a conjoint analysis survey. This chapter also explores how conjoint analysis can be leveraged to design effective marketing strategies.
• Chapter 4 discusses the advantages and disadvantages of using conjoint analysis. It explores the strengths of this method while acknowledging potential criticisms and limitations.

Schlüsselwörter (Keywords)

Conjoint analysis, marketing research, customer preferences, value system, preference measurement techniques, market segmentation, pricing, product design, marketing strategies.

• College: AKAD University of Applied Sciences Stuttgart
• Grade: 1,3
• Author: Dipl.-Ing. (DH) Michael Lang (Author)
• Publication Year: 2011
• Pages: 26
• Catalog Number: V166538
• ISBN (eBook): 9783640831050
• ISBN (Book): 9783640830749
• Language: English
• Tags: Marketing, Marketing Research, Conjoint, Conjoint Analysis, Marketing Strategy, Marktforschung, Conjoint-Analyse, Marketing-Mix