Conjoint Analysis, or trade-off analysis, is one of the most common marketing techniques employed by businesses worldwide. This procedure is usually used by a company to better understand their customers and ascertain the potential market for their goods.
Conjoint Analysis, if done properly, tells a company about the order of preference a potential customer assigns to different features of their product. For example, the attributes of a computer used in a conjoint analysis can be processor speed, RAM speed and hard-disk space. The survey is subsequently presented to a set of potential customers with different combinations of these features. The customers are later asked to assign these combinations an increasing or decreasing order of preference. The results are then analyzed by a computer for patterns.
Normally, conjoint analysis is very time-consuming and an arduous task. However, thanks to the existence of conjoint analysis software, like the one from Qualtrics, this procedure can be done much more quickly and efficiently.
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