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Question 1

What is Conjoint Analysis?

Answer 1

Conjoint analysis is a mathematical-statistical method for calculating utility values (part-worth utilities) for pre-specified levels of product attributes by analysing respondents’ ranking of attribute combinations.

Question 2

How are utility values in Conjoint Analysis calculated?

Answer 2

Utility values are calculated by asking respondents to rank different combinations of attributes, then summing the part worth-utilities for each attribute level.

Question 3

What is an example of attribute levels in Conjoint Analysis?

Answer 3

For example, in car selection:
- Colour: black, white, red
- Horsepower: 65 PS, 110 PS
- Model: Limousine, Convertible
- Price: 10,000, 18,000, 25,000

Question 4

How is preference ranking assigned in Conjoint Analysis?

Answer 4

Respondents sort attribute combinations based on preference, assigning 1 to the least preferred and increasing the rank for more preferred options.

Question 5

How are average scores computed for attributes in Conjoint Analysis?

Answer 5

Average scores are computed by summing the scores assigned to each attribute level and dividing by the number of occurrences for that level.

Question 6

What is the formula to calculate part-worths in Conjoint Analysis?

Answer 6

Part-worth for an attribute level is calculated using the formula:
part worthi = (average scorei - minimum) / (maximum - minimum)

Question 7

How is the relative importance of attributes calculated in Conjoint Analysis?

Answer 7

Relative importance is calculated by subtracting the minimum part worth from the maximum, summing up all attribute importance, then dividing each attribute’s raw importance by the total and multiplying by 100.

Question 8

What are the advantages of Conjoint Analysis?

Answer 8

Advantages include:
- Trade-off between characteristics
- Balancing price vs. quality
- Customer-specific attitudes for benefit segmentation

Question 9

What are the disadvantages of Conjoint Analysis?

Answer 9

Disadvantages include:
- Requires expertise to design and analyse
- Cost-intensive

Question 10

How does the Importance-performance model differ from Conjoint Analysis?

Answer 10

The Importance-performance model is compositional, disregards price, uses descriptive research, and directly asks for importance. In contrast, Conjoint Analysis is decompositional, includes price, and uses experimental design.