Conjoint Analysis: Turning Preference into Price for Med-Tech

Part 2 of the IDR Medical Conjoint Insights Series

Setting the right price for a new medical device means balancing value perception, clinical differentiation, and competitive dynamics in markets where procurement is complex.

In Part 1 of this series, we highlighted why preference shares from conjoint analysis should not be mistaken for market share.

Here in Part 2, we build on that foundation, showing how preference data, when combined with price, becomes a powerful engine for designing evidence-based, commercially realistic pricing strategies.

1. Conjoint Reveals How Customers Trade Value for Cost

Every conjoint study generates part-worth utilities, quantitative measures of how much each attribute contributes to customer choice. Crucially, this includes price, enabling us to assess:

• Willingness to Pay (WTP) for new features or performance improvements
• Price elasticity, or how sensitive adoption is to price change
• Tipping points where interest drops rapidly

In other words, conjoint doesn’t just show which configuration customers prefer; it reveals how much that preference is worth. This transforms preference data into value-based pricing insights, ensuring that pricing reflects the true incremental value delivered, rather than internal cost assumptions or competitor benchmarks.

2. From Preference Shares to Price Response Curves 

Once price utilities are established, conjoint data can be modelled into price response curves. These curves illustrate how predicted preference changes as price moves, assuming competitors hold their position.

For example:

• A surgical device may maintain stable preference until it exceeds a 15% price premium over the market leader, after which interest drops sharply as procurement committees reconsider ROI
• A diagnostic consumable may retain significant preference even at higher prices if it meaningfully improves workflow efficiency or reduces infection risk.
• A digital add-on with automation benefits may show high tolerance for subscription price increases among hospital IT stakeholders, but lower tolerance among clinical departments with fixed budgets.

These insights provide clarity on where price sensitivity matters and where value justifies a premium.

3. Turning Conjoint Insights into Actionable Pricing Strategies 

Conjoint provides the price point that maximises perceived value and adoption potential. However, pricing decisions never happen in isolation.

To be operationally effective, conjoint outputs must be interpreted through the lens of:

• National procurement frameworks
• Tendering and GPO contract structures
• Reimbursement policies
• Budget cycles
• Replacement lifetimes and capital planning
• Your strategic objective (penetration, premium defence, or niche focus)

At IDR Medical, we integrate conjoint-derived price sensitivity with real-world commercial constraints. The result is pricing guidance that is:

• Credible (anchored in customer value)
• Actionable (aligned with how procurement actually works)
• Strategically aligned (supporting commercial ambition)

4. From Insights to Revenue Impact 

For clients requiring deeper commercial view, we extend conjoint analysis into pricing and revenue simulations that link price response with:

• market size
• adoption curves
• discounting structures
• contracting models
• competitor reactions

This enables teams to test “what if” scenarios such as penetration pricing, premium strategies, bundled offers, or subscription models, and understand the revenue and margin implications of each.

In many cases, the conjoint-derived price recommendations are sufficient on their own. In others, they become the foundation of a full commercial model. Our approach at IDR Medical remains flexible by design.

In Summary

Conjoint analysis doesn’t just measure preference - it monetises it.

By converting stated preferences into financial insights, it provides a defensible, data-driven roadmap to pricing success for Med-Tech manufacturers.

Whether assessing price elasticity, modelling willingness-to-pay, or simulating alternative pricing scenarios, conjoint helps ensure pricing decisions are robust in theory and effective in the market.

Ready to translate customer insights into revenue and market growth? Let’s talk.

What's Next in the Series

At IDR Medical, we help Med-Tech manufacturers turn conjoint insights into actionable pricing and value strategies. Whether you’re defining launch price points, refining value messaging, or exploring margin optimisation, our team can help you translate data into decisions.

This article is part 2 of IDR Medical’s Conjoint Insights Series:

• Part 1: Conjoint Preference Shares Are Not Market Shares
• Part 2: From Preference to Price: Using Conjoint Data to Build a Winning Pricing Strategy
• Part 3: From Conjoint to Commercial Reality