Questions that the analysis can address:
- What is the optimal mix of product features for maximizing our market share?
- What product features drive the purchase decision?
- What product features should be emphasized in our communications campaign?
URIKA Research applies conjoint techniques to evaluate the viability of new products or services, and to determine the optimal mix, or bundle, of features that will motivate customer purchase.
Conjoint analysis utilizes the logic of the experimental method to illustrate the differential impact that attributes of a product or service have on customer choice. One of the strengths of the analysis lies in its ability to model the process that individuals actually go through when they make purchase decisions. In most purchase situations buyers make tradeoffs between features, for example, between comfort and style, and price and convenience. The conjoint technique is structured so that tradeoffs must be made between features.
In one application of conjoint, Discrete Choice Modeling (DCM) research participants evaluate products with specific features (e.g., price, brand name) alongside each other, and they choose the product they prefer most. Different sets of products are presented to each participant, and the levels of features are manipulated (e.g., price presented as 10Ghc, 20Ghc or 30Ghc) to evaluate the impact of each feature on product choice.
Our analysis illustrates the importance of particular features in motivating product choice, as well as the impact of specific levels of features on choice.