Conjoint analysis in market research is a powerful technique that evaluates and measures the value customers place on features of a product or service based on trade-offs. Over the years, there have been significant developments in the design and methods of conjoint analysis. Over time, the use of conjoint has expanded across markets ranging from consumer goods, B2B and from simple products to multi-dimensional product and service solutions.
In this month’s blog, we will explore five conjoint analysis methods. Read on to find out how each method works, or if you would like, follow this link to our eBook that is full of useful information that will help you decide which conjoint method is best suited for your market and product scenario…
Traditional Full-Profile Conjoint
In full-profile, conjoint respondents are shown comprehensive product descriptions to determine their preferences by measuring the value placed on specific attributes and their utility. To gather this information, a set of questions will present different product descriptions (or different products) that will then be evaluated for preference or suitability.
Below is an example of this methodology applied to the evaluation of new medical devices – in this instance, respondents are asked their preference rather than their likelihood of purchase:
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
Adaptive Conjoint Analysis (ACA)
Adaptive Conjoint Analysis (ACA) methods allow for conjoint (trade-off) analysis. The term "adaptive" refers to the fact that the computer-administered interview is customised for each respondent. At each step, previous answers are used to decide which question to ask next and identify the respondents preferred product features/specifications.
The ACA interview has several sections:
1. Preference for Levels (Respondent rates the levels in terms of relative preference)
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
2. Attribute Importance (Determine the relative importance of each attribute to the respondent)
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
3. Paired-Comparison Trade-Off Questions (Respondent is shown two product concepts; they are then asked which is preferred and to indicate the strength of preference)
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
4. Calibrating Concepts (Optional Section) (The respondent is asked what their likelihood of buying a certain product is. This is done to understand which features they are more likely to choose)
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
Choice Based Conjoint (CBC)
With this methodology, the respondent is shown a series of choice tasks. Each task displays several concepts and requires the respondent to choose one from the set, including the option to not choose any. By showing respondents several full profile descriptions, the research can mimic how a typical buying situation would unfold, thus estimating the respondent’s choice behaviour. Having the option to not choose any of the profiles presented, the researcher can understand the preference and importance placed on each feature based on trade-offs made.
CBC: Task example
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
Adaptive Choice Based Conjoint (ACBC)
ACBC is a combination of two methods: ACA and CBC. It captures more information at the individual level than traditional CBC surveys and may also be used with small samples. ACBC interviews are structured in three core sections, with the addition of an optional one:
1) BYO (Configurator)
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
2) Screening Section
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
3) Choice Tasks
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
4) Calibration Section (Optional)
Respondents first configure their preferred product via a BYO (Build Your Own) question. Based on the preferred product a set of similar products are then presented in a Screening Section for the respondent to evaluate. Respondents indicate which of these similar products they would consider also revealing non-compensatory cut-off rules. Finally, a last product selection amongst those screened into the consideration set is made through a Choice Tasks section.
Menu Based Conjoint (MBC)
MBC is used for analysing a variety of menu-based and discrete choice problems. The idea behind this method is that respondents can select the options they are most interested in from a list and leave out those they do not particularly value.
MBC Task example (prices varies in each task)
*Examples provided are purely for illustrative purposes and are unrelated to any IDR Medical projects
IDR Medical has over a decade of experience in conducting market research tailored to healthcare markets – including a significant number of projects that have used conjoint methodologies to develop resilient market models and detailed pricing guidance for the success of new products/services.
If you would like to know more about conjoint methodologies, we have put together a handy guide full of useful information that includes: additional insight for each method explained above, an in-depth analysis of each method’s features and our recommendations for conducting conjoint analysis in market research. Follow this link to download our eBook…
If you are planning a new medical device or service launch and you would like advice or guidance on which conjoint method to use, please contact us and we would be pleased to offer a primary consultation free of charge. This would consist of an initial discussion (by telephone or face to face depending on location), followed by a concise presentation outlining IDR Medical’s proposed approach, with explanation and rationale.
