The purpose of this study is to identify the best method of analysis to deploy to understand how consumers develop preferences for products or services using combination of different attributes. After conducting a detailed literature review, it was proven that conjoint analysis is the best method to associate for the type of research needed to be carry-out. This study take an in-depth look in to the conjoint analysis method to understand how it use to achieve the intended results

1. 1
Study to investigate which analysis is the best equipped to understand how consumers develop
preferences for product or services
Charm Rammandala
California Intercontinental University

2. 2
Abstract
The purpose of this study is to identify the best method of analysis to deploy to understand how
consumers develop preferences for products or services using combination of different attributes.
After conducting a detailed literature review, it was proven that conjoint analysis is the best
method to associate for the type of research needed to be carry-out. This study take an in-depth
look in to the conjoint analysis method to understand how it use to achieve the intended results

3. 3
Introduction
Deciding which type of analysis is the most suited for the research study is a crucial decision any
researcher have to think long and hard. It is an important part of research study. Inaccurate data
collection and analysis would lead to an inaccurate results. There are number of ways to design
and conduct analysis and ensuring the right method is chosen is utmost important.(Bryman 2003)
In order to conduct a research on customer preferences towards different products and services,
researcher needs to be sure about the type of data collection and analysis method best suited.
This study will be focusing on literature reviews on data collection and analysis methods and
how those are used to achieve the intended results.

4. 4
Main body
Various scholars have written extensively about the various sampling strategies, data analysis
methods and how to test hypothesis or statistical tests over the years.
Brief literature review
Widely accepted description of scientific research is systematic, controlled, empirical, and
critical investigation of natural phenomena guided by theory and hypotheses about the presumed
relations among such phenomena. (Kerlinger, 1986)
This paper is closely looking at the best possible research strategy to capture the consumers’
perspective on product or services. There are several types of data collection methods to get the
consumers view and primarily those can be divided in to two categories. (Bryman 2003)
1. Qualitative data collection methods
2. Quantitative data collection methods
Qualitative methods include questionnaires with open ended questions, in-depth interviews and
observations. Quantitative methods includes, questionnaires with open ended questions, clinical
trials, collecting data from management information systems.

5. 5
Figure 1 (Ahamadi 2006)
Figure one illustrate the sampling breakdown of a study. Researcher has to ask series of
questions to determine who should be in the study, how to approach them and what percentage
of population should participate to the study to make the outcome is reliable and valid
Mainly there are two types of sampling.
 Probability sampling
 Non-probability sampling
Once the sample is chosen and data collection is completes, it would be the time for data
analysis. In essence analysis is a process deployed to transform, remodel and revise collected
information in order to arrive at a certain conclusions.
In above paragraphs we have touched on the importance of selecting correct sampling strategy
and analysis method. For the study of consumer preferences, best method is conjoint analysis
Conjoint Analysis

6. 6
Conjoint analysis is a popular marketing research technique. It is a great tool to explore how
people make decisions when it comes to taking decisions. It involves presenting participants with
choices and then analyzing what were the drivers of the choices. Using conjoint analysis,
manufacturers or services can find out whether they should be adding more features to the
products, what the consumers think about the pricing, practicality of the product and so on.
Every customer making choices between products and services is faced with trade-offs. They
have to decide which attributes are more important than others. For an example, is price is
important than quality or easy access better than excellent customer service. (Liew 2013)
Graph 1 (Rao 2014)
Graph 1 demonstrate how the conjoint analysis aim to find the optimum positioning between low
price – low quality and high price – high quality in terms of price and feature by quantifying the
trade-offs and compromises customers take in decision making.
Figure 2 shows the conjoint analysis process flow. At the stage 1 identifying the research
problem and stage 2 is deciding the attributes needed to be tested. On the stage 3 researcher

7. 7
needs to decide on the methodology. Stage 4 to 6 are collecting data, conducting the analysis and
interpreting the data. Once data interpretation is done it is important to validate the data before
applying the results to the product or services.
Figure 2 (Orme 2009)
There are mainly 3 types of conjoint analysis. Those are,
1. Traditional conjoint
2. Adaptive conjoint analysis
3. Choice based conjoint analysis
There are three main parts involved in conjoint analysis design. First task is to break down
product or services in to component attributes and levels. Then the decision of what is the best
way to present options to customers combined with the decision of which method should be used
to find out which product profiles are most preferred.

8. 8
Conclusion
In summery it is clear that conjoint analysis help customers to pinpoint why they prefer certain
products and services over their competitors. It has the tools that allows a subset of the possible
combinations of product features to be used to determine the relative importance of the each
feature in the purchasing decision. Hence in the research topic of which analysis is the best
equipped to determine consumer preferences towards products and services, it is clear conjoint
analysis is the best option.

9. 9
References
Ahamadi Mo (2006) Research methods & processes
Retrieved from gala virtual reference library http:/gale. Galegroup.com (10/26/2015)
Bryman Alan, Bell Emma (2003) Business research methods
retrieved from books 24x7 http:/gale. Galegroup.com (10/29/2015)
Liew hui (2013) Teach yourself cluster analysis, conjoint analysis and econometric techniques
Retrieved from gala virtual reference library http:/gale. Galegroup.com (10/26/2015)
Rao Vithala (2014) Applied conjoint analysis
Retrieved from gala virtual reference library http:/gale. Galegroup.com (10/26/2015)
Orme Brian (2009) Getting started with conjoint analysis
retrieved from books 24x7 http:/gale. Galegroup.com (10/27/2015)
Walker Susan (2012) Employee engagement communication research: measurement strategy &
action. retrieved from books 24x7 http:/gale. Galegroup.com (10/25/2015)