“A lot of times, people don’t know what they want until you show it to them.” Steve Jobs.
Deciding on the best development path for a new product can be challenging. Conjoint analysis is a proven technique for estimating the impact of price and feature changes on preference share.
How does conjoint analysis work?
Survey participants in the relevant market are asked to evaluate numerous product profiles. The alternatives are created based on a computer generated experimental design. The survey doesn’t need to test every possible alternative thanks to some clever mathematics. The mathematical model predicts preference for any particular brand, feature and price set; which can be changed to test different scenarios.
- Quantify preferences for products that don’t exist yet, or improve existing products.
- Identify the best combinations of features.
- Determine the relative importance of different product attributes without asking consumers directly.
- Run scenarios in a simulator to see if your changes would have a positive or negative impact.
- Run what if scenarios regarding competitor responses.
- Obtain an indication of willingness to pay for features, and the implied monetary value of each feature.
- Understand price impact on share of preference for your product versus competitors.
Approximately 20 to 30 working days depending on the target group, questionnaire length and analysis complexity. Note: timelines are provided as a guideline only. Actual times may vary due to factors such as panel demand, season, project specification and other unique project characteristics. Timelines are calculated from the date you approve the final questionnaire for launch.