The following two approaches are available for conjoint analysis:
APPROACHES
FOR CONJOINT ANALYSIS
The
following two approaches are available for conjoint analysis:
1. Multi-factor evaluation approach
2. Two-factor
evaluation approach
MULTI-FACTOR
EVALUATION APPROACH IN CONJOINT ANALYSIS
Suppose a researcher has to
analyze n factors. It is possible that each factor can assume a value in
different levels. Product Profile
A product profile is a
description of all the factors under consideration, with any one level for each
factor. Suppose, for example, there are 3
factors with the levels given below. Factor
1 | : | 3 levels |
Factor
2 | : | 2 levels |
Factor
3 | : | 4 levels |
Then we have 3 × 2 × 4 = 24 product profiles. For each
respondent in the research survey, we have to provide 24 data sheets such that
each data sheet contains a distinct profile. In each profile, the respondent is
requested to indicate his preference for that profile in a rating scale of 0 to
10. A rating of 10 indicates that the respondent’s preference for that profile
is the highest and a rating of 0 means that he is not all interested in the
product with that profile. Example: consider
the product ‘Refrigerator’ with the following factors and levels: Factor
1 | : | Capacity
of 180 liters; 200 liters; 230 liters |
Factor
2 | : | Number
of doors: either 1 or 2 |
Factor
3 | : | Price :
rs. 9000; rs. 10,000; rs. 12,000 |
Sample profile of the product Profile
Number | : | |
Capacity | : | 200 liters |
Number of Doors | : | 1 |
Price : Rs. 10, 000 Rating of Respondent : ( in the scale of 0 to 10)
Steps In Multi-Factor Evaluation Approach:
1. Identify the factors or features
of a product to be analyzed. If they are too many, select the important ones by
discussion with experts.
2. Find out the levels for each factor selected in
step 1.
3. Design all possible product
profiles. If there are n factors with levels L_{1}, L_{2},…L_{n} respectively, then the total
number of profiles = L_{1}L_{2}…L_{n}.
4. Select the scaling technique to
be adopted for multi-factor evaluation approach (rating scale or ranking
method).
5. Select the list of respondents using the standard
sampling technique.
6. Request each respondent to give
his rating scale for all the profiles of the product. Another way of collecting
the responses is to request each respondent to award ranks to all the profiles:
i.e., rank 1 for the best profile, rank 2 for the next best profile etc.
7. For each factor profile, collect
all the responses from all the participating respondents in the survey work.
8. With the rating scale awarded by
the respondents, find out the score secured by each profile.
9. Tabulate the results in step 8.
Select the profile with the highest score. This is the most preferred profile. 10. implement the most preferred profile in the design
of a new product. Two-Factor
Evaluation Approach In Conjoint Analysis
When several factors with
different levels for each factor have to be analyzed, the respondents will have
difficulty in evaluating all the profiles in the multi-factor evaluation
approach. Because of this reason, two-factor evaluation approach is widely used
in conjoint analysis.
Suppose there are several factors to be analyzed with
different levels of values for each factor, then we consider any two factors at
a time with their levels of values. For each such case, we have a data sheet
called a two-factor table. If there
are n factors, then the number of such data sheets is .
Let us consider the example of
‘Refrigerator’ described in the multi-factor approach. For the two factors (i)
capacity and (ii) price, we have the following data sheet.
Data Sheet (Two Factor Table) No:
In this case, the data sheet is a
matrix of 3 rows and 3 columns. Therefore, there are 3 × 3 = 9 places in the matrix. The
respondent has to award ranks from 1 to 9 in the cells of the matrix. A rank of
1 means the respondent has the maximum preference for that entry and a rank of
9 means he has the least preference for that entry. Compared to multi-factor
evaluation approach, the respondents will find it easy to respond to two-factor
evaluation approach since only two factors are considered at a time. Steps in two-factor evaluation approach: Identify
the factors or features of a product to be analyzed. 1. Find out the levels for each factor selected in
step 1. 2. Consider all possible pairs of factors. If there
are n factors, then the two-factor table, indicating all the levels for the two factors. If L_{1} and L_{2} are the respective levels for
the two factors, then the number of cells in the corresponding table is L_{1}L2. 3. Select the list of respondents using the standard
sampling technique. 4. Request each respondent to award ranks for the cells in each two-factor
table. I.e., rank 1 for the best cell, rank 2 for the next best cell, etc. 5. For each two-factor table, collect all the responses from all the
participating respondents in the survey work. 6. With the ranks awarded by the respondents, find out the score secured by
each cell in each two-factor table. 7. Tabulate the results in step 7. Select the cell with the highest score.
Identify the two factors and their corresponding levels. 8. Implement the most preferred combination of the factors and their levels
in the design of a new product. Application: The two factor approach is useful
when a manager goes for market segmentation to promote his product. The
approach will enable the top level management to evolve a policy decision as to
which segment of the market has to be concentrated more in order to maximize
the profit from the product under consideration.
Tags : Research Methodology - Factor Analysis And Conjoint Analysis
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