Conjoint Experiments

2020-07-28

Check out our updated, more detailed description of conjoint experiments here

 

Our customers are constantly making choices, some conscious, but most unconscious. Regular surveys questions with traditional question scales are unable to get to the core of why a consumer makes his or her decision. Most of these scales don’t simulate real-life conditions, which always include some type of real trade-offs. 

 

To simulate real life consumer decision making, the most precise approach is through either a Conjoint Analysis or MaxDiff Analysis

 

Gradient has designed countless experiments within a wide range of markets and sectors, with each its own application. 

 

How it works

Choice-based conjoint analysis is a technique for quantifying how the attributes of products and services affect their preference. It is typically used to help decision makers identify the optimal design of products and pricing. 

 

In contrast to a MaxDiff experiment, each attribute typically contains levels. Each level holds a variation of an attribute (e.g. three different price points). Each respondent is shown multiple screens with varying levels within each attribute. 

 

On a large scale, this allows us to know exactly how much each attribute and level contributes to making the decision. 

 

A typical survey question can look like this:

 

 

When to use a Conjoint Analysis? 

    • When you want to identify the optimal combination of product attributes that drive customer choice
    • If you want to emulate a realistic shopping experience
    • If you want to see how market changes affect consumer behavior  with the Market Simulation Tools  
    • When you want to create customer segments based on their relative attribute importances