Identify What Drives Decision-Making in Your Target Market

Conjoint analysis provides insight into what drives the purchase decisions, including the brand, price, and variety of product attributes. This technique provides the data you need to clearly understand how your target market is making purchase decisions and improve your return on marketing.

The Benefits of Conjoint Analysis

• Conjoint analysis is an efficient quantitative methodology that enables companies to forecast price elasticity of demand and sales potential
• Conjoint analysis is the best way to determine (and simulate) the purchase likelihood and estimate volumetrics for competing products under a wide variety of pricing scenarios
• For situations in which you need to determine which combination of packaging options, names, benefit statements and price will result in maximum market acceptance, conjoint analysis is a “best practice” technique for strategic marketing
• Conjoint analysis is designed to elicit information on purchase decisions in a hypothetical, yet realistic, purchase setting. Respondents are given a series of choices among hypothetical products and choose the product they would be most likely to purchase – or they may choose no product at all. By analyzing the data, the relative significance of product attributes and critical price points that affect purchase likelihood are identified

If your team finds themselves asking any of the following, then conjoint analysis will help you gain the market information your company needs:

• What pricing strategy should I use? – Determine the trade-offs your target customers are willing to make at different price levels between the product features that they most desire.
• Do my customers want these product features? – Identify the must-have product features of your product by segment.
• What incents customer purchase decisions? – Understand which factors drive consumer behavior: brand, price, or features.