Conjoint Analysis

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Conjoint Analysis: Explaining Full Conjoint analysis answers the question of which attributes are important to consumers and how important they really are. Taken in combination, individual product attributes can be used to describe an entire product. Conjoint analysis determines the combination of product attributes that consumers most prefer. Conjoint analysis, when applied to product, service, and communications projects identifies which product and service attributes, or which communications messages are most preferred and are best combined to produce maximum effect. Conjoint Analysis originated out of the mathematical psychology research of conjoint measurement1 . Green and Wind2 state that conjoint measurement is “concerned with measuring the joint effect of two or more independent variables on the ordering of a dependent variable. The output of conjoint measurement consists of the simultaneous measurement of the joint effect and separate independent variable contributions to that joint effect, all at the level (asymptotically) of interval scales with common unit.” “ From the standpoint of multi-attribute choice making, conjoint measurement can sometimes be used to decompose overall evaluation into implicit utilities for components of the multicomponent alternatives” In layman’s terms, conjoint analysis (1) identifies the attributes important in a choice decision, (2) identifies the way the attributes are combined to make the decision, and (3) determines the utility value to each of the levels of each of the attributes considered in the decision. Green and Wind further point out that the method of conjoint analysis used represent the different theories of how people choose between multi-attribute alternatives. Conjoint analysis attempts to jointly identify the composition model for decision choices and at the same time estimate the utility value of
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