Trade-Off Analysis (or Conjoint Analysis)
Every purchase decision is nothing but a series of trade offs that the buyer makes between several attributes to maximize its utility. In order to gain competitive edge, Marketers need to get a deeper understanding of consumer behavior and design/price product accordingly.
Trade-Off Analysis is also known as Conjoint Analysis. Trade off/Conjoint analysis is a powerful research technique which helps to quantify the perceived values of individual product features & determine what features drives consumer behavior.
At AbsolutData our deep expertise and pioneering approach to trade-off analysis helps us lend winning edge to our clients.
Trade-Off Analysis can help to derive an optimal solution for client’s product by answering following questions:
* What is the best possible combination of features for my product?
* How price sensitive are the target customers? At what price can client maximize its ROI?
* What services are consumers willing to pay more for in the product?
* How will a change in features impact client’s market share?
How Does Trade-Off/Conjoint Analysis Work?
* Represents ‘Product’ as a collection of different levels of various features
* Respondents choose the most preferred product from a set of products
* The set of chosen products generates preference/utility values at a respondent level, and for every level of each feature
* ‘What-If Simulators’ exploit this utility information to generate different product scenarios and help explain market behavior at an aggregate level
AbsolutData Trade-Off/Conjoint Analysis Expertise:
AbsolutData uses advanced Trade-off Analysis techniques and apply them to answer various business problems:
* Discreet Choice Conjoint - Respondents are shown different products at the same time and are asked to select one of them. This is the most popular type of conjoint analysis today
* Adaptive Conjoint Analysis - The product combination shown are dynamically updated based on previous responses in the survey. This can only be done on a computer based survey.
* Maxdiff Conjoint - Respondents are asked to select the best and worst attribute from the combination shown. Typically used for soft attributes that are not quantified
* Asemap - A relatively new technique to find attribute importance for large number of attribute.
