Conjoint Analysis is one of the most versatile and strategically important research techniques used by decision makers worldwide.

Marketers can use utility values to design products and/or services that satisfy the needs based on utility weightage provided by specific population segments.

Conjoint Analysis can be used by marketers to conduct computer choice simulations to identify successful and unsuccessful products and services before they are introduced to the market. Simulations allow the marketer to estimate preference, sales and share for new products and services before they are introduced to the market. Price simulations can also be conducted to determine the sensitivity of the consumer to changes in prices and possible disturbances caused due to price distortions.

Case Study : Banking Product Choice Based Conjoint Study

The objective of the survey was to collect respondent opinions regarding one of a number of financial products including opinions of the companies offering these products.

Respondents were asked the following question:

Please select the one option that you would be most likely to choose if these CDs were available to you. You may only select one; either a 12 month CD option or 24 month, but not one of each.

Approach:

:: Each respondent is shown their respective products based on their previous selection (in this case there were 3 products (HELOC, MMA and CD)

:: Each respondent sees 1 version and a set of 14 tasks.

:: Each version has its own set of unique 14 tasks.

A product simulator and price sensitivity report was developed and presented with Title (user information), Input (attributes level setting), elasticities and importance calculation (showing share of preference) etc.

Business Outcome:

The Financial Institution was able to understand consumer choices and preferences on various financial products and their sensitivity towards interest rates for each product based on multiple scenarios.