Multivariate Data

Analysis
Chapter 7 - Conjoint
Analysis

What Is Conjoint Analysis?

A Hypothetical Example of Conjoint

Analysis

An Empirical Example

The Managerial Uses of Conjoint Analysis

Comparing Conjoint Analysis with Other
Multivariate Methods

Compositional Versus Decompositional

Techniques
Specifying the Conjoint Variate
Separate Models for Each Individual
Types of Relationships

Designing a Conjoint Analysis

Experiment

Stage 1: The Objectives of Conjoint

Analysis

Defining the Total Utility of the Object

Specifying the Determinant Factors

Designing a Conjoint Analysis

Experiment (Cont.)

Stage 2: The Design of a Conjoint Analysis

Selecting a Conjoint Analysis Methodology

Designing Stimuli: Selecting and Defining
Factors and Levels

General Characteristics of Both Factors and Levels

Communicable Measures
Actionable Measures

Specification Issues Regarding Factors

Number of Factors
Factor Multicollinearity
The Unique Role of Price as a Factor

Specification Issues Regarding Levels

Balanced Number of Levels

Range of the Factor Levels

Designing a Conjoint Analysis

Experiment (Cont.)

Stage 2: The Design of a Conjoint Analysis

(Cont.)

Specifying the Basic Model Form

The Composition Rule: Selecting an Additive Versus an

Interactive Model
The Additive Model
Adding Interaction Effects
An Example of Interaction Effects on Part-Worth
Estimates
Selecting the Model Type

Selecting the Part-worth Relationship: Linear, Quadratic, or

Separate Part-worths
Types of Part-Worth Relationships
Selecting a Part-Worth Relationship

Designing a Conjoint Analysis

Experiment (Cont.)

Stage 2: The Design of a Conjoint Analysis

(Cont.)

Data Collection

Choosing a Presentation Method

The Trade-Off Presentation Method
The Full-Profile Presentation Method
The Pairwise Combination Presentation Method

Creating the Stimuli

The Trade-Off Presentation Method
The Full-Profile or Pairwise Combination Presentation
Methods
Defining Subsets of Stimuli

Selecting a Measure of Consumer Preference

Survey Administration

Designing a Conjoint Analysis

Experiment (Cont.)

Stage 3: Assumptions of Conjoint Analysis

Stage 4: Estimating the Conjoint Model

and Assessing Overall Fit

Selecting an Estimation Technique

Evaluating Model Goodness-of-Fit

Designing a Conjoint Analysis

Experiment (Cont.)

Stage 5: Interpreting the Results

Aggregate Versus Disaggregate Analysis

Assessing the Relative Importance of Attributes

Stage 6: Validation of the Conjoint Results

Managerial Applications of
Conjoint Analysis
Segmentation
Profitability Analysis
Conjoint Simulators

Alternative Conjoint
Methodologies

Adaptive Conjoint: Conjoint with a Large

Number of Factors

Self-explicated Conjoint Models

Adaptive/hybrid Conjoint Models

Alternative Conjoint
Methodologies (Cont.)

Choice-based Conjoint: Adding Another Touch of

Realism

A Simple Illustration of Full-profile Versus Choice-based

Conjoint
Unique Characteristics of Choice-Based Conjoint

Some Advantages and Limitations of Choice-based

Conjoint

Type of Decisionmaking Process Portrayed

Stimuli Design
Estimation Technique
The Choice Task
Predictive Accuracy
Managerial Applications
Availability of Computer Programs

Summary

Overview of the Three Conjoint Methodologies

An Illustration of Conjoint
Analysis

Hair et al. (1998), P.429-436