Conjoint Analysis for Product Strategy Decisions
Abstract:
The tremendous appeal that conjoint analysis has had for the marketing research community during the past few decades is due to the fact that from a relatively small amount of data, the Conjoint Model provides a way of predicting preference for a potentially large number of products and services which have never been directed evaluated. After the quantification of value systems has been completed, the marketing researcher is in a position to simulate the consequences of numerous marketing scenarios. For example, one could estimate the impact of the introduction of a new product to the marketplace or changes in the specifications of existing products: both yours and your competitors. Armed with this kind of information, it is possible to develop products which maximize share/revenue/profits, minimize the cannibalization of existing business, and target specific groups of people.
