Setting up a conjoint study

Conjoint analysis is a five-step process:

1. Select the product attributes to be included.
2. Select the product attribute levels.
3. Create product profiles.
4. Collect data from target customers.
5. Estimate the utility of each product attribute and level using regression analysis.

Let’s go over each step in detail.

Step 1 – select the product attributes to be included

The first step in conjoint analysis is to select the product attributes that will be included in the analysis. The product attributes should be those that are most important to customers. The attributes should also be those that are most controllable by the company. For example, if a company is considering launching a new product, the attributes that are most important to customers and that are most controllable by the company should be included in the conjoint analysis.

Analysts should be careful not to include too many product attributes. Typically...