Introduction to Conjoint analysis
• Conjoint analysis attempts to determine the relative
importance, consumers attach to salient attributes and the
utilities they attach to the level of attributes.
• This information is derived from consumer evaluations of
brand profiles composed of these attributes and their
• The respondents are presented with stimuli that consists of
• They are asked to evaluate these stimuli that consist of
combinations of attribute levels in terms of their
• Based on the evaluations utility of each level of attribute is
determined with help of Conjoint analysis.
Conjoint analysis has been used in marketing for a variety of
purposes, some includes:
• Determining the relative importance of attributes in the
consumer choice process
• Estimating market share of brands that differ in attribute
• Determining the composition of the most preferred brand
• Segmenting the market based on similarity of preferences
for attribute levels
• The method which we chose to get sample
frame is Convenient sampling, the sample size
Data Collection Design
• Data was collected from the respondent’s
order of preferences through the list of
combinations that were provided by us.
• The combinations were generated by
orthogonal method from SPSS.
• The responses were tabulated manually on
SPSS data file.
• The operations were carried out with the
Syntax of a pre-programmed conjoint analysis.
• The results were analyzed with the help of
utilities table and importance table.
Price in Lakhs
Type of car
• Customers perceiving maximum utility from sedan (.833)
compared to SUV (-.167) & MUV (-.567)
• Customers perceiving maximum utility from CNG (1.333)
compared to Petrol (-.583) & Diesel (-.750)
• Customers perceiving maximum utility from Price worth of
6 Lakhs (0.667) compared to 8 Lakhs (.250) & 9 Lakhs (.917)
• So, from all the above figures and combination the
maximum utility (Total utility=2.833) can be achieved with
the combination of Sedan with CNG and Priced at 6 Lakhs
• The next alternative to get better utility (Total Utility=2.416)
is from Sedan with CNG priced at 8 Lakhs
• The minimum Utility (Total Utility= -2.234)is found in MUV
with Diesel Priced at 9 Lakhs