Purchasing decisions are a complex matter because many aspects play a role in the selection of products and services. But what are the critical factors? How can you improve your market position? Through more customer service, or even a lower price? Conjoint analysis combined with market modeling can answer questions like these. Goldmedia has already carried out numerous conjoint analyses for national and international clients.
Selected Cases
Functions and Benefits
The following (fictional) example makes clear how conjoint analysis works and what benefits the customer can expect: A telecommunications company wants to grow and so wants to bring a new mobile phone tariff to the market. Among other things, it must answer the question of which price-performance mix can achieve the highest acceptance and what market share can be expected. In order to determine this, the company commissions a conjoint analysis.
Procedure: Phase 1
The first step is to identify the factors (features) that influence a customer's decision for or against a mobile phone tariff. There are:
- Provider (brand)
- Basic monthly fee
- Monthly free minutes
- Price per text message
- Price per extra minute
Procedure: Phase 2
Next, the properties of the individual features are defined, for example for “Price per text message” 5 cents, 9 cents, 15 cents and 19 cents. To be able to perform market simulations afterwards, we do not merely consider the alternatives to the offer in question alongside, but also the competitors' possibilities.