Professional Documents
Culture Documents
On-Line Brokerage:
Brand + Fee + Speed of Transaction + Reliability of
Transaction + Research/Charting Options
Stated Importances
Importance Ratings often have low discrimination:
Average Importance Ratings
6.7
Brand
7.2
Interest Rate
8.1
Annual Fee
7.5
Credit Limit
10
Stated Importances
Answers often have low discrimination, with most
answers falling in very important categories
Answers sometimes useful for segmenting the
market, but still not as actionable as could be
or
140 Horsepower
28 MPG
Tradeoffs
Utility
2.5
1.8
25
35
50
5.3
3.2
1.4
Conjoint Importances
Measure of how much influence each attribute has on
buyers choices
Best minus worst level of each attribute, percentaged:
Vanilla - Chocolate
25 - 50
(2.5 - 1.8) =
(5.3 - 1.4) =
Totals:
0.7
3.9
----4.6
15.2%
84.8%
-------100.0%
Market Simulations
Make competitive market scenarios and predict which
products respondents would choose
Accumulate (aggregate) respondent predictions to make
Shares of Preference (some refer to them as market
shares)
= 5.7
= 7.1
35%
65%
Vanilla @ 35
Chocolate @ 25
Traditional Conjoint
(Six Attributes)
Your Answer:___________
Strengths of ACA
Ability to measure many attributes, without
wearing out respondent
Respondents find interview more interesting and
engaging
Efficient interview: high ratio of information
gained per respondent effort
Can be used even with very small sample sizes
Weaknesses of ACA
Partial-profile presentation less realistic than real
world
Respondents may not be able to assume attributes not
shown are held constant
Strengths of CBC
Questions closely mimic what buyers do in real world:
choose from available products
Can investigate interactions, alternative-specific effects
Can include None alternative
Paper or Computer/Web based interviews possible
Weaknesses of CBC
Usually requires larger sample sizes than with Full Profile
or ACA
Tasks are more complex, so respondents can process fewer
attributes (CBC recommended <=6)
Complex tasks may encourage response simplification
strategies
Analysis more complex than with Full Profile or ACA
U(X ) =
i =1
ki
x
j =1
ij
ij
where
U(X)
ij
xjj
ki
m
Importance of Attributes
The importance of an attribute, Ii is defined in terms of the
range of the part-worths, ij across the levels of that
attribute:
The attribute's importance is normalized to ascertain its
importance relative to other attributes, Wi:
I
I
i
i =1
So that
W
i =1
=1
Holdout Cards
Rated by subjects but are not included in the conjoint
analysis for coefficient / utilities estimations, or
Generated from another random plan, (not the main
effects experimental plan) without any duplication.
Conjoint computes correlations between the observed
and predicted rank orders for these cards as a check
on the validity of the utilities.
It can be expected that holdouts will always have
lower correlation.