Understanding Consumer Preferences with Conjoint Analysis
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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.
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Understanding Consumer Preferences with Conjoint Analysis
- 2. Mike Maughan Product Marketing Craig Lutz Professional Services
- 4. Conjoint for Humans Dating = Conjoint Decisions
- 5. What is Conjoint Analysis? • Measures preference and value • Models market experience • Identifies role of price • Predicts market adoption
- 6. Building Blocks of Conjoint • Features • Levels
- 7. Conjoint on the Road 2014 Ferrari Enzo F70 Color Horse Power Cost Body Style MPG Red Black Yellow
- 8. Steps of a Conjoint Analysis Project 1. Define features and levels 2. Select type of conjoint analysis 3. Collect data 4. Run analysis & reporting
- 9. Types of Conjoint Analysis • Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
- 10. Types of Conjoint Analysis • Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
- 11. 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?
- 12. 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
- 13. NFL Team Ticket Packages
- 14. • 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.
- 15. Types of Conjoint Analysis • Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
- 16. Adaptive Choice Conjoint Analysis • Can handle large feature sets • Packages adapt based on previous selections • It gets ‘smarter’ as the survey progresses
- 17. Adaptive Choice Conjoint Analysis
- 18. Adaptive Choice Conjoint Analysis
- 19. Adaptive Choice Conjoint Analysis
- 20. Adaptive Choice Conjoint Analysis
- 21. • 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
- 22. Types of Conjoint Analysis • Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
- 23. 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
- 24. • 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
- 25. 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
- 26. Types of Conjoint Analysis • Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
- 27. Full-profile Rating-based Conjoint Analysis • Display series of product profiles • Typically rated on a likelihood to purchase or preference scale
- 28. • 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
- 29. 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
- 30. Types of Conjoint Analysis • Choice-based • Adaptive Choice • Menu-based • Full-profile Rating-based • Self-explicated
- 31. 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
- 32. • 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
- 33. 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)
- 34. Output of Conjoint Analysis
- 35. Simulator
- 36. 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 conjoint@qualtrics.com
- 37. 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!
- 38. 38 Questions?
- 39. Thank you!