Conjoint analysis Essay examples

Submitted By Sansanthu22
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Conjoint analysis: Conjoint analysis is a quantitative method used in marketing research. It requires participants to make an arrangement of trade-offs. And it is used to measure the study how changes to cost impact mainly for things or organizations, and to figure the possible acceptance of a product if taken to market. It helps us to understand the market preferences. The main theme of any conjoint analysis is to assign specific values to the range of choices which buyers consider while making a purchase decision. With the help of this data, marketers can focus on the important features of products or services, by which they can reach target buyers. As we know that all products are expected to be on same level of advertising and marketing, there should be some kind of variation in advertising which allows the product from attaining its maximum potential. Which is also called as brand. A brand is an identity or awareness of a product belonging to one vender which is different from those of other vender’s product. Here conjoint analysis is very effective in representing the choices made by respondents among a set of products. This analysis assumes that there will be an awareness of the product in the market. It provides full information of product which allows marketers to design the best product for their market. Which indirectly promotes brand value of a product. That is if a proper conjoint analysis is made on the products which helps consumers make their decisions on purchasing a best product that also promotes brand. Using the data analysed marketers get real idea of the psychological compromises of consumers while evaluating several attributes at a time. And then consumers were reminded to a particular brand of a product which they wish to choose. It can be important tool for a company to promote their brand. Conjoint analysis is good at measuring the value of brand names with relative to the competing brands. We can obtain statistics on how strong a brand is in contrast to particular product features. Even though having a good brand name may not be enough if most of the market is price sensitive. There should be a need of satisfying particular features to balance our investment on brand value.

The major disadvantage of conjoint analysis is it is complex and tough to produce. Most of the data provided by this analysis is not provided with any accurate conclusion. There is some difficulty to use product positioning. If the analysis is not well designed then it may over value preferred variables and may underestimate the original variables. In case of market segment it does not consider the number of items per purchase which may give poor analysis on the products. This type of poor designed studies may highlights the cons of the brand which may result in…