Conjoint Analysis

Question 1

concept testing

Answer 1

Show the product (with price) to a population of
potential customers

Question 2

conjoint analysis

Answer 2

Product = a bundle of attributes; Customer preference for product = sum of their preferences for the levels of each attribute

Question 3

attribute

Answer 3

mutually exclusive characteristics of the product

Question 4

level

Answer 4

Specific quantities of the attributes to be tested

Question 5

product profile

Answer 5

A description of the product,using the attributes and levels to be studied

Question 6

attribute list formulation

Answer 6

A business problem is defined and an attribute list is developed to study the problem

Question 7

utility calculation

Answer 7

set of preference values or part-worth “utilities” is derived from interview data; they reflect trade-offs each respondent made

Question 8

market simulation

Answer 8

utility values are used to predict how buyers choose among competing products and how their choices change as product features and/or price vary

Question 9

utility

Answer 9

comparative level of preference for a level

Question 10

relative importance

Answer 10

how big a role a given attribute plays in the customer’s overall preference

Question 11

segmentation analysis

Answer 11

the average importance that different groups attach to the attributes

Question 12

choice-based conjoint analysis

Answer 12

select product from a limited set of options with a subset of attributes