Advantages Of Conjoint Analysis

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Hence, the contribution of individual attributes are inferred based on an overall assessment of the research objects (Baier, 1999, p. 198). These objects are product or service profiles are either real or randomly generated and are a set of attributes with variable attribute levels (Gustafsson, Herrmann, & Huber, 2003, p. 7). Using these part-worth values and certain selection rules, the conjoint analysis applies models for market simulations, where product profiles are benchmarked based on the expected profit realization, to give reasonable product design recommendations (Gaul & Baier, 2009, p. 181; Green, 2009). Based on the above description, Baier and Brusch (2009, pp. 11–15) provide an example for the traditional conjoint analysis (TCA)…show more content…
One of the most significant benefits are the aforementioned closeness to reality and the indirect data collection, often conducted in form of computer-based surveys (Baier 1999 as cited in Baier, 1999, p. 10). Through the realistic approach, the respondents receive tasks that are similar to the actual purchase act as the respondents have to consider and weigh up different alternatives of product attributes (Baier & Brusch, 2009, p. 15). Furthermore, the firm’s ability of integrating consumer requirements, a product’s competitive advantages, and the firm’s expense situation is also regarded as a relevant strength of the conjoint analysis (Gaul et al. 1995 as cited in Gaul & Baier, 2009, p. 163). As with other research methods, a conjoint analysis also comes along with some challenges. For example, prior to the study, the researcher needs to identify product alternatives including relevant attributes used by customers in their purchasing decision; these attributes do not necessarily correspond to those physical attributes required for the design process (Fabian, 2005, p. 169). Additionally, the traditional conjoint analysis does not include attribute interactions, only allows for a limited amount of product attributes to be used, and respondents might easily be overwhelmed by a large number of evaluation tasks (Baier & Brusch, 2009, p. 10; Brusch, 2005, p. 24). Further advantages and disadvantages of the conjoint analysis can be found in Brusch (2005) and Lehmann, Gupta, and Steckel
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