When it comes to product and pricing research, conjoint analysis is the most beneficial technique. Moreover, with the help of conjoint analysis, you can understand the buyers’ choices and gather information about their likings and disliking. These pieces of information help to decide the characteristics of the goods, goods’ cost, modification or new products planning, and share market estimate.
Most industries use the conjoint analysis technique to provide better service to their customers. The trades are air travel, finance, real estate, and so on. You can search for the 10 great conjoint analysis use cases to understand their benefits.
To understand the conjoint types, let’s divide them into three types and then into the subcategories.
Acknowledgment type
- Rate the products
In this, consumers have to rate the alternative products in the range of 0 to 100. It helps businesses to understand the demand for products and buyers’ needs.
- Best or worst
In this, consumers get the three to four options, and according to their liking and disliking, they can rate the products worst and best.
- Rank the products
It is similar to best to worst conjoint. However, here consumer also has to rank the products from best to worst. It helps owners to limit the manufacturing of a particular product.
- Choice-based conjoint
Here, consumers have to select the option they are willing to purchase. It is the most popular method of conjoint analysis. This way, you can have the exact data of consumers’ likings.
Questioning based conjoint type
- Standard conjoint
Standard conjoint comes under the advanced conjoint analysis. So the questions that are going to send to the participants are thoroughly researched and examined. All the questions are designed by using the latest algorithms to gather the correct data.
- Adaptive conjoint or adaptive choice-based conjoint
Adaptive conjoint is opposite to the standard conjoint. In this, there is no past preparation – the questions will be prepared at the time of the interview. Sometimes, it can also include choices similar to multiple-choice questions. However, it is quite a complicated process.
Design types
- Generic or unlabelled design conjoint
This way, you can understand what features and prices are getting customers’ attention. This conjoint analysis is suitable for all types of industries.
- Brand specific conjoint
Brand-specific conjoint analysis helps to understand what brand is getting the most attention from the customers and why. During this, many questions are asked to the participants relevant to diverse brands. It helps us to understand the psychology of the human brain.
Why use conjoint analysis?
Conjoint analysis is getting popular day by day due to the results it gives. Many brands opt for this and make ten times more revenue. As it directly helps to know the consumers’ needs and wants. Nothing is better than having all the data that is profitable for the business. Due to this, as a business owner, you can focus on the products that are beneficial for your consumers and cut of the expenses that are not mandatory.
In the end,
If you want to increase your revenue, the conjoint analysis could be a great option to understand your targeted audiences’ needs.