Summary

In this chapter, we explored the concept of conjoint analysis and its applications in market research and product design. Conjoint analysis is a powerful tool that allows us to understand consumer preferences and make informed decisions about product attributes.

We discussed the process of conducting conjoint analysis, including the creation of choice sets, the estimation of utility values, and the calculation of share predictions. We also highlighted the importance of sample size and the need to report the error of estimates when conducting conjoint analysis.

Furthermore, we addressed the concept of sensitivity analysis and its role in understanding the impact of attribute changes on choice shares. We emphasized caution regarding the IIA assumption and provided strategies to mitigate its limitations, including using advanced models such as nested logit or mixed logit models and segmenting the market.

Overall, conjoint analysis offers valuable insights into consumer...