Conjoint Analysis

Overview

Conjoint analysis estimates the relative value consumers place on product attributes by analyzing their choices among hypothetical product profiles. Choice-Based Conjoint (CBC) is the most common variant. Produces part-worth utilities per attribute level and derived willingness-to-pay estimates.

When to Use

Trigger conditions:

• Determining which features drive purchase decisions and how much they're worth
• Estimating willingness to pay for specific product features
• Optimizing product configuration for a target segment

When NOT to use:

• When you only need an acceptable price range (use Van Westendorp — simpler)
• When attributes can't be varied independently (natural constraints)

Algorithm