We live in a world where on its one side we look at crowded market place, busy airports, occupied streets, exploding market space, crowded shelves while on its other side we listen some shouts like “Buy Me” “Try Me” “Look at Me” from product or service vendors.
In the midst of everything a consumer psychic goes around several things and he decides according to his logic, preferences, individual sense of value and evaluating sense of options. At the same time a marketer wants to know that what makes a consumer choose one option over another. Marketers want to get inside of consumers mind to know how they can make consumers buy their product or at least push their products into consumer consideration set.
A product or a service has several attributes and these attributes have their own importance & value which affects consumer buying decisions. “Conjoint Analysis” gives insights to a marketer about a product concept in terms of part-worth utility and importance value of their product attributes from a user’s perspective.
A shirt has various attributes like color, texture, design, fabric and of course for a value (price). Whenever you purchase a shirt, you consider these attributes according to your preference and give some importance to each of these attributes corresponding to your individual sense of value. Similarly when you buy a phone you look at its respective attributes like operating system, touch panel, audiovisual quality, storage, battery-backup etc.
You have some preferences and sense of value to look at these attributes to make a purchase along with your optimum level of requirement. You may realize that your purchase has a set of importance for each and every attribute of your acquired product. Your judgment decision decomposes into components, which is based on qualitative attributes of your purchased product. These are nothing but your buying decision elements and a marketer loves to acknowledge them.
It’s a marketer’s job is to configure a defined set of attributes for a product or a service and considering that a consumer’s purchase decision will be rational (which is not always true) then conjoint analysis can help. Conjoint Analysis helps marketers understand their market’s preferences therefore one can apply to various aspects, including product development, competitive positioning, pricing, product line analysis, segmentation and resource allocation.
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