Conjoint Analysis
At Sawtooth Technologies, we answer your most critical product development and pricing questions by giving you rich insights into how the market would respond to different offerings.
When faced with a critical product or pricing decision, conjoint analysis can help. Conjoint is a powerful advanced research technique that predicts how the market will respond to product or pricing changes by understanding the trade-offs that customers make during the decision-making process. The technique can be used to answer the all-important question: what value does the market place on products or services and their features?
Conjoint analysis allows you to understand your customers’ underlying value systems and build a market model based on those values. The model allows you to test the potential impact of product improvements and new products on market demand. The resulting insights give you a clear competitive edge.
Shedding Light
Conjoint analysis helps answer vital product development and pricing questions, such as:
- What combination of features should a product or service offer? Which are the most critical features, and which are less important?
- How does price impact demand for the product or service?
- How well will a new product or service compete in the market?
- Which strategies will maximize market preference across your product portfolio?
- Which strategies will minimize cannibalization of existing offerings, especially premium or higher margin products or services?
- How vulnerable are you to competitive response?
We invite you to learn more about how conjoint works, see an example of how conjoint is applied, and read representative case studies to find out how we’ve employed this technique to benefit our clients.
Beyond Conjoint
You can get even more value from a conjoint analysis study with needs-based segmentation, a technique that divides a market into groups of people who place similar value on the various features of a product or service. Going this extra step can lead to more highly targeted product development and pricing strategies.
For the conjoint basics please read “Understanding Conjoint in 15 Minutes,” by Joseph Curry, President and Founder of Sawtooth Technologies.
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