Conjoint Measurement Analysis

Conjoint measurement analysis plays an important role in marketing. In the design of new products, it is valuable to know which components carry what kind of utility for the customer. Marketing and advertisement strategies are based on the perception of the new product’s overall utility. It can be valuable information for a car producer to know whether a change in sportiness or a change in safety or comfort equipment is perceived as a higher increase in overall utility. The conjoint measurement analysis is a method for attributing utilities to the components (part-worths) on the basis of ranks given to different outcomes (stimuli) of the product. An important assumption is that the overall utility is decomposed as a sum of the utilities of the components.