Posted in Marketing and Strategy Terms, Total Reads: 1104
Definition: Conjoint Analysis
It is the analysis of trade-offs. It is the most widely used technique in marketing research to determine which product features to include and what should be the price for the product. It is used to forecast the acceptance of the product with respect to price. I.e. how the demand is linked to the price.
The same product with different features (value additions) and different price is offered to the buyers. The buyers would state their preferences in about 15-20 questions. Then with the help of multiple regression or other statistical techniques the best trade-off is identified which is suitable to both manufacturer and the buyer.