CONJOINT ANALYSIS -Day: 11 Team:D

                                                                       Team: D 

Conjoint analysis is a popular marketing research technique that marketers use to determine what Features a new product should have and how it should be priced.  Conjoint analysis became popular because it was a far less expensive and more flexible way to address these issues than Concept testing.  It is used to measure the perceived values of specific product features, to learn how demand for a particular product or service is related to price, and to forecast what the likely acceptance of a product would be if brought to market. Rather than directly ask survey respondents what they prefer in a product, or what attributes they find most important, conjoint analysis employs the more realistic context of respondents evaluating potential product profiles. Each profile includes multiple conjoined product features (hence, conjoint analysis).

Later forms of conjoint analysis showed products in pairs as in the example below:

Respondents usually complete between 12 to 30 conjoint questions. The questions are designed carefully, using experimental design principles of independence and balance of the features. By independently varying the features that are shown to the respondents and observing the responses to the product profiles, the analyst can statistically deduce what product features are most desired and which attributes have the most impact on choice. In contrast to simpler survey research methods that directly ask respondents what they prefer or the important of each attribute, these preferences are derived from these relatively realistic tradeoffs situations.

Conjoint analysis questionnaires ask respondents to evaluate realistic product profiles (described by multiple features) and to choose which they would buy. Such surveys are more realistic than traditional questionnaires that simply ask respondents which features they prefer or regarding the generic importance of attributes.

 Common business applications include:

• Designing new products
• Re-designing existing products
• Product line extension research
• Estimating brand equity
• Measuring price sensitivity (elasticity)
• Optimizing employee compensation packages and workplace conditions
• Branding and packaging.

Conjoint analysis must currently be run using syntax. Unlike most procedures in SPSS for Windows, conjoint analysis requires the user to invoke two files:

1.Plan File:The plan file contains the combinations that will be presented to the participants.

2. Data File:The data file contains the participants' responses.

The syntax includes the full location of the plan file, but uses an asterisk to alert SPSS to use the file in the data editor as the data file. 

       STEPS:-

Step 1: Generating the Plan file:
Open SPSS ->Data > Orthogonal Design-> Generate

Define factors :

Step 2:Data -> Orthogonal Design->Display

This will give you profiles (Multiple combination of factors).Go to your subject and find out their ranking for the given profiles.

Step 3: Generate the data file
The file is generated on basis of ranking provided to different preferences.

Step 4:Run a conjoint Analysis: CONJOINT PLAN='C:\Documents and Settings\Administrator\Desktop\VXLPLAN.SAV'
/DATA=*
/SUBJECT=ID
/FACTORS=LAPTOP_CARRY INT_CONNECT_VIDEO_DEMAND
VIDEO_CONF_VOIP PRICE_PREMIUM
/RANK=PREF1 TO PREF9
/UTILITY='C:\Documents and Settings\Administrator\Desktop\OUTPUT.SAV'
/PLOT=SUMMARY
/PRINT=SUMMARYONLY.

Step 5: Analyse the output

Author: VINOD JOSHI