Imagine for a few moments that you want to buy a new car. After looking for a while, you narrow your search down to 2 choices. Choice A costs $20,000. Choice B costs $18,500. If cost were your only concern, your choice would be easy. But nothing is that easy.
Now lets say that Choice A is available immediately, has almost all the features you want and has better mileage than choice B. Choice B has almost all the features you want, is the exact color you want, has better resale value and the dealership is throwing in a $1000 gas card – but you can’t have it for 6 weeks. Do you make your choice on price? Resale value? Availability? Bells and whistles? What will you consider in order to make your decision?
Conjoint Analysis is a powerful way to find out what drives a customer to buy one product or service over another. In a conjoint analysis we look at the trade-offs consumers make in their purchasing decisions. With this information we are able to identify the best possible features of a product or service. The information gathered from conjoint analysis is especially valuable when constructing advertising or promotional messages since it highlights the features that have the most influence on choice.
If you would like to find out how Conjoint Analysis can work for you, call us.