M19 - Conjoint Analysis Flashcards
Whats conjoint analysis?
Methods of …. analsis, that deduces …. for ….. of a product, and their levels, from valuations of the product as a …. .
Critics?
Methods of preference analsis, that deduces preferences for attributes of a product, and their levels, from valuations of the product as a whole.
Critics:
You need to habe price knowledge
–> if not, assumption is wrong
It assumes rational behaviour
Approach conjoint analysis
- dissect test obects into discrete attributes/ dimensions
- choose levels for dimensions
- get reduced set of cards
- let people rank the cards
Adv conjoint ana?
- natural decision situation
- respondents are not overstrained
- importance of attributes identified
- ko criteria and trade off identified
Disadv conjoint ana?
- only limited no. of attributes and levels possible
- correct choice of attributes needed
Criterias for choice of attributes/levels
1-5
- relevant dor preference formation
- independent
- realizable
- attributes’ levels may not exclude each other
- limted no. of attributes and levels
Choice of attributes/ levels
Dont use … many
–> choice of a suitable … of all …. stimuli
By …. draw, which is not ….
Or by …. choice
–> …. set of cards
Choice of attributes/ levels
Dont use TOO many
–> choice of a suitable SUBSET of all POSSIBLE stimuli
By RANDOM draw, which is not RECOMMEND
Or by SYSTEMATIC choice
–> REDUCED set of cards
Evaluation of conjoint cards
Approaches
- ranking
- rating scales
- pair xomparison
- choice-based
Estimation of part-worths 3/3
- can be estimated using multivariate regr
- dv is the rank of the respective stimuli
- iv’s are the dunmy variables that describe the stimuli
- for econometric models : various possibilities
- -> OLS, rank-ordered logit, mixed logit
Normalization and importance
Why do we have to normalize?
We need to normalize, because we are only interested in the differences between the part-worths of an attribute
How to normalize?
- set partworth of one level to 0
- set the sum of partworths to 0
- other
Imprtance of an attribute
- difference between …-…. of best and worst …
- ….. in such a way that …. over all importance …. equal 100%
Note: importance of an ….. depends on the choice of its and the other …..’s ….
Levels and attributes need to be chosen carefully.
- difference between PART-WORTH of best and worst LEVEL
- NORMALIZED in such a way that SUM over all importance VALUEs equal 100%
Note: importance of an attribute depends on the choice of its and the other attributes’ levels!
Levels and attributes need to be chosen carefully.
Imprtance of an attribute
- difference between …-…. of best and worst …
- ….. in such a way that …. over all importance …. equal 100%
Note: importance of an ….. depends on the choice of its and the other …..’s ….
Levels and attributes need to be chosen carefully.
- difference between PART-WORTh of best and worst LEVEL
- NORMALIZED in such a way that SUM over all importance VALUEs equal 100%
Note: importance of an attribute depends on the choice of its and the other attributes’ levels!
Levels and attributes need to be chosen carefully.
