why customers buy | conjoint analysis: unlocking the secret to what your customers value
DESCRIPTION
Conjoint analysis is the key to unlocking the value customers place on different feature of a given product, service, or experience. Join us as we explore five different types of conjoint analysis and discuss how you can use them to let your customers do the talking.TRANSCRIPT
Mike Maughan
Product Marketing
Craig Lutz
Professional Services
Customer-driven World
Conjoint for Humans
Dating = Conjoint Decisions
What is Conjoint Analysis?
• Measures preference and value • Models market experience • Identifies role of price • Predicts market adoption
Building Blocks of Conjoint
• Features • Levels
Conjoint on the Road
2014 Ferrari Enzo F70
Color
Horse Power
Cost Body Style
MPG
Red
Black
Yellow
Steps of a Conjoint Analysis Project
1. Define features and levels 2. Select type of conjoint
analysis 3. Collect data 4. Run analysis & reporting
Types of Conjoint Analysis
• Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
Types of Conjoint Analysis
• Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
Choice-based Conjoint Analysis
• Most commonly used • Respondents select
from grouped options OR A double scoop of
vanilla ice cream with no toppings
A single scoop of chocolate ice cream
with chocolate chunks
Which ice cream option is more appealing to you?
Choice-based Conjoint Analysis
• Simplest and easiest • Accurately simulates the
market
• An excessive number of features or levels (in combination) necessitates long surveys, which leads to survey fatigue
Pros Cons
NFL Team Ticket Packages
• Situation: The team had to raise ticket prices • Goal: Understand what fans most valued, allowing the NFL
team to present ticket packages that delivered the right value at the right price
NFL Team Ticket Packages Pricing
Features Levels* Seat location End zone, sideline, upper bowl, lower bowl
Price $100, $200, $300, $400
Parking Voucher VIP lot, Lot A, Lot B, Shuttle lot
Concession Voucher Full meal, hot dog and drink, 3 beers *These are not the actual levels used in this conjoint analysis project.
Types of Conjoint Analysis
• Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
Adaptive Choice Conjoint Analysis
• Can handle large feature sets • Packages adapt based on
previous selections • It gets ‘smarter’ as the survey
progresses
Adaptive Choice Conjoint Analysis
Adaptive Choice Conjoint Analysis
Adaptive Choice Conjoint Analysis
Adaptive Choice Conjoint Analysis
• Effectively handles many features and levels
• Maximizes respondents’ time by asking fewer questions to get to equally valid data
• More complicated to set up, and thus more costly
• Requires more advanced statistical methods to determine preference models
Pros Cons
Adaptive Choice Conjoint Analysis
Types of Conjoint Analysis
• Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
Menu-based Conjoint Analysis
• Respondents are shown a list of features and levels
• Respondents choose among options to create their ideal product, rather than selecting from pre-established groupings
Please select from the following items to configure your optimal dining experience:
Restaurant type: Café Casual dining Buffet Pub / bar Fast food
Atmosphere
Quiet Family friendly Rowdy Themed
Perks
Free wifi Entertainment Free appetizers
• Fewer questions are used to determine what customers value
• The most flexible and engaging type of conjoint survey
• Results are less scientific – they are not based on regressions, but rather count totals or percentages
Pros Cons
Menu-based Conjoint Analysis
Telecommunications Company
• Modeled the buying behavior demonstrated in the market
MINUTES: 100 minutes 500 minutes 2000 minutes Unlimited minutes
TEXTS 200 texts 500 texts 1000 texts Unlimited texts
DATA 2 GB 5 GB 10 GB Unlimited data
Cell Phone Minutes
1000 minutes
Texts
Data
Types of Conjoint Analysis • Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
Full-profile Rating-based Conjoint Analysis
• Display series of product profiles
• Typically rated on a likelihood to purchase or preference scale
• Allows for the greatest variation in responses
• Most granular feedback
• Can lead to respondent fatigue
• Does not value the market as accurately as other types
• Ambiguity between rating scales
Pros Cons
Full-profile Rating-based Conjoint Analysis
Laser Spine Treatment Marketing
• Goal: Develop effective $16M advertisement campaign
• Action: Conjoint survey of individuals over 50 with moderate to severe back pain
• Impact: Doubled first year expected revenue goal
Types of Conjoint Analysis
• Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
Self-explicated Conjoint Analysis • Direct ask of feature and levels • Each feature is presented
separately for evaluation or elimination
• Respondents rate all remaining features according to desirability
• Simpler and shorter for respondents
• Fully supported within the Qualtrics platform
• Lose all interaction effects • It is limited to features and
levels that don’t include price
Pros Cons
Self-explicated Conjoint Analysis
Financial Services Firm Non-price related questions: • Who do you prefer to contact
you? (Sales, customer support, marketing, etc.)
• How do you prefer to be contacted? (Phone call, text, mail, email, etc.)
• Would you like to be followed up with if not reached in first attempt (Yes, No)
Output of Conjoint Analysis
Simulator
Qualtrics Professional Services
• 150+ conjoint projects per year • Leverages the flexibility and reach of
the Qualtrics platform • For a quote on professional services
work, feel free to reach out to us at [email protected]
Qualtrics Professional Services Conjoint analysis is just one of the things the Qualtrics Professional Services team does. They're also great at: • Voice of the Customer • Website Advisory Services • Custom Dashboards • API Integration Services • Research Consulting • And much, much more!
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Questions?
Thank you!