An exercise for every company
In conjoint analysis, consumers are asked to react to a number of hypothetical concepts or service descriptions. When consumers are offered a wide range of choices, they would ideally like to have everything at the easiest level of access, but will inevitably have to ask themselves “What am I willing to do without for something I really want?” Since we can’t have everything, trade-offs are inevitable and we opt for the best compromise.
Determining the optimal balance of trade-offs is where statistics play an important role. Trade-off analysis, or conjoint analysis, is a collection of standard statistical techniques that provides objective insights into consumer preferences. This kind of analysis can work in many ways, including allocating a “worth” to every feature being researched on a common scale to determining the combination of features with the greatest value.