Conjoint analysis

Methods based on the choices (trade-offs) made by consumers therefore lead to much better results. By understanding these choices, you can discover what is truly relevant to consumers. By pursuing this relevance in our research, we build strong relationships with our clients and provide insights that lead to directly applicable results.

Research based on choice behavior often concerns highly strategic issues involving major investments for our clients. Examples include the introduction of a new product or service, adjustments to the existing portfolio to become more competitive, or the basis for a new pricing strategy.

What are the benefits of a conjoint analysis?

The Conjoint methodology is an example of a technique based on consumer choice behavior. Compared to the MaxDiff technique, conjoint analysis is more comprehensive and also somewhat more complex. This is because consumers do not only choose between individual elements, but between complete products or services that are made up of different aspects.

To give a simple example: when taking out a mobile phone subscription, consumers not only choose a provider, but also a device, different subscription types (term, number of GBs, warranty), and the monthly costs. We refer to all these characteristics as attributes, and within these attributes there are different levels, such as price levels or varying amounts of GBs.

Consumers are presented with choices and must decide which package is most attractive. By analyzing these choices, it becomes clear which elements are more or less important in the final decision. This helps companies to put together the most relevant product or service possible and determine the optimal price. In addition, market simulations can be carried out, which also include competitors in order to better estimate market potential.

One example of this is a study into the added value of a sustainability label on a product. We investigated not only whether a label led to greater preference and willingness to pay, but also how the different grades (A to E) influenced price perception.

Why choose a conjoint analysis?

Conjoint analysis provides valuable insights that can be directly applied to strategic decisions. For example, we investigated how lease contracts could best be marketed for a white goods manufacturer. Using this methodology, we identified the primary target group and determined which package composition (e.g., washing machine + additional services such as warranty and maintenance) was considered most attractive.

In addition, we were able to accurately determine which elements of the offer consumers considered valuable and how much they were willing to pay for specific services. This helped the manufacturer determine which extras were worth including in the lease offer and which were not.

By opting for conjoint analysis, companies gain concrete tools to optimally tailor their products and services to consumer preferences. This not only leads to more effective marketing and product development, but also to strategic decisions that truly align with market needs.

We would be happy to advise you on whether the Conjoint methodology can also yield relevant results for your research question.