A company needs to know what values its products provide to its customers. It helps in making an effective marketing strategy that results in more sales. Companies offer products/services which include multiple features and functionalities. But the company does not know how their customers feel about all the features of a particular product.
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Prior to a conjoint survey, it was difficult to know what feature of a product a customer thinks is most valuable. Standard rating or matrix questions don’t provide information about trade offs. Sure someone might think feature A of a product is great, but how important is that feature when compared against others? This is where a conjoint analysis survey comes in handy.
Below is a detailed explanation of the conjoint survey methodology:.
Conjoint Analysis Survey Overview:
Conjoint analysis is a type of survey where customers have to value different attributes of a product/service to find its strengths and weak points. Companies conduct the conjoint analysis survey in which consumers rank the characteristics of their products against each other. The results allow the company to eliminate the product’s flaws and focus on further enhancing the strengths.
Conjoint analysis is a statistical method that is proven effective in measuring the consumer’s preferences during purchasing activity. The extracted data is used to evaluate the company’s product/service in innovative ways.
How Conjoint Works:
The idea of conjoint analysis is based on breaking down the product into different sets of levels and attributes that a consumer can rank based on their perception of it. A level is something like a product color and the attributes are different colors.
For example, if a mobile phone company wants to survey what features of the phone their consumers prefer the most while buying it, they might have levels such as screen size, weight, and monthly cost. The company will then add in the relevant attributes to each level, and respondents are shown random combinations of attributes, helping to identify preferences.
With this data in hand, the company can plan better marketing strategies and pricing plans by gathering such essential information through conjoint analysis surveys.
Benefits of a Conjoint Survey:
Conjoint analysis surveys help everyone who wants to better understand their customer’s buying behavior and improve their marketing strategies. When businesses are in the startup phase, they do not have much information about their consumers. This is why startups benefit from conjoint analysis way more than developed organizations.
Moreover, suppose a brand has launched a new product. In that case, it will want to learn the consumer’s behavior to improve the product or launch similar products in the future based on the results of the conjoint analysis survey. These are significant benefits of conjoint analysis and are not limited to these few only. If used correctly, conjoint analysis can bring a lot more benefits to businesses.