Introduction and Methodology

Conjoint analysis is a technique for measuring consumer preference about the attributes--such as price or package design--of a product or service. It relies on surveying subjects with a representative set of attribute combinations--for example, a particular package design and price--which the subjects rank or score according to preference. Analysis then yields quantitative information that can be used to model consumer preference for any combination of the attributes.

A study utilizing conjoint analysis consists of choosing a representative set of attribute combinations, administering them to a group of subjects, and analyzing the rankings or scores recorded by the respondents. In conjoint analysis, attributes are referred to as factors, and attribute values--like a particular price or package design--are called levels.

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