Conjoint analysis has become the industry’s standard market research technique to use when a company is challenged with optimizing the feature set design of a product or service or determining the price point that will maximize market penetration or profitability. The Key Group offers conjoint analysis (Classic and Choice based) that empowers companies to understand the relative value of the product features within a product design based on a proven statistical conjoint modeling technique and contemporary data from the customers.
A conjoint analysis uses a method which mimics the purchase process and can be used to predict the market (preference) share impact and price elasticity for a potential new product or product enhancement. In a conjoint exercise, the respondents are shown a set of product profiles in a simulated competitive product environment and asked to indicate which one they would purchase. The respondents can be given up to approximately twenty (depending on number of attribute levels or price points) purchase choice sets. In addition, a conjoint simulator is created for each study that allows the client to test the market’s purchase or interest level response to any combination of product attributes or price points. This tool allows a company to guide the product research and design team efforts and fine tune the marketing message to enhance the success of the product launch.
