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Marketing textbook, chapter 4

Market research → Data analysis → Multivariate methods of dependency analysis → Conjoint analysis (chapter 4.4.3.2)

The following problems are associated with the use of conjoint analysis in market research practice: Although many features and their characteristics increase the realism of the assessment situation, they quickly lead to a cognitive overload for the respondents. In addition, the assessment task (ranking, rating or pair comparison) does not correspond to the actual decision-making process of consumers at the point of sale.

These disadvantages of the classic conjoint analysis have led to the development of newer approaches, of which the so-called „Choice-Based“ conjoint analysis (CBC) has the greatest empirical relevance. Almost half of all preference measurements conducted in German-speaking countries are carried out using this method (Völckner et al., 2008, p. 689). The special feature of the choice-based conjoint analysis is that the respondents have to make discrete choices, i.e. one alternative is selected from a set of alternatives. However, there is also the realistic possibility of not choosing any of the stimuli presented. The theoretical basis of the „choice-based“ conjoint analysis is the so-called random utility theory (cf. McFadden, 1974, p. 105 ff.). The procedure can be illustrated using the following example:

An online concept test was used to analyse the preference effect of various properties of smoothies. Smoothies are whole-fruit drinks that form a sub-market of fruit juices. The following questions were to be answered: What influence do various features of smoothies have on consumers„ purchasing decisions? Which characteristics of the features are particularly favoured by the target group? 300 people were surveyed who stated that they had already bought smoothies. The features to be analysed and their characteristics are shown in Figure 1.

The study is based on the following four feature groups: Brand, packaging, claim (advertising message), price
Figure 1: Characteristics and characteristics of the study
Image description

The study is based on the following four groups of characteristics:

  • Feature 1: Brand
    • You can choose from the brands Schwartau, Mövenpick, Viva Vital, true fruits and the trade brand Naturis, each represented with its official brand logo.
  • Feature 2: Packaging
    • The packaging shapes are illustrated by terms and grey silhouettes: glass bottle, tetra pack, plastic cup and two variants of a plastic bottle (one straight and one curved shape).
  • Feature 3: Claim (advertising message)
    • Various product claims are tested: „100% pure fruit with mild yoghurt“, „no added preservatives, sugar or flavourings“, a combination of both („100% pure fruit with no added...“), the emotional message „100% natural - 100% enjoyment“ and an option without any claims.
  • Feature 4: Price
    • The prices are divided into six levels from €0.69 to €2.19, with intervals of 30 cents.

With the help of a suitable introductory scenario, the respondents were placed in a realistic decision-making situation and then confronted with 12 shopping situations, each with three smoothie products. Each stimulus consisted of a systematic combination of the four characteristics to be tested. The respondents„ only judgement task was to indicate which of the three products shown they would choose. The option “I would not buy any of the products shown" could be ticked if none of the alternatives shown were deemed acceptable. Figure 2 shows an example of one of the selection situations.

Example of a selection situation (choice set) with three smoothie offers from the brands Schwartau, Viva Vital and true fruits as well as a ‚None‘ option, with the question: „Which of these products would you buy?“ above the selection. There is a choice of three variants, each containing 200 ml:
Figure 2: Example of a selection situation
Image description

Example of a selection situation (choice set) with three smoothie offers from the Schwartau, Viva Vital and true fruits brands and a ‚None‘ option.

Above the selection is the question: „Which of these products would you buy?“. There are three variants to choose from, each containing 200 ml:

  • Option 1: Schwartau (left)
    • Appearance: Two straight plastic bottles; one contains a dark red smoothie, the other a yellow one.
    • Claim: „100% natural - 100% pleasure“.
    • Price: EUR 0.99.
  • Option 2: Viva Vital (centre)
    • Appearance: Two curved plastic bottles and colourful labels.
    • Claim: „WITHOUT ADDED PRESERVATIVES, SUGAR AND FLAVOURINGS“.
    • Price: EUR 1.59.
  • Option 3: true fruits (right)
    • Appearance: Two purist glass bottles and the vertical brand lettering.
    • Claim: „100% PURE FRUIT WITH NO ADDED PRESERVATIVES, SUGAR OR FLAVOURINGS“.
    • Price: EUR 1.29.
  • Option 4: No selection
    • Below the three products is the fourth button with the text: „I would not buy any of these products“.

The relative importance of the features for the respondents„ choice decisions is shown on the left-hand side of Figure 3. The “price„ has the greatest significance with a relative importance of more than 50 per cent, while the product claim, i.e. the verbal “claim", tends to play a subordinate role in the decision.

The partial preference values of the characteristic attributes provide information on which attribute of a characteristic is particularly favoured by the respondents. The right-hand side of Figure 3 shows the partial preference values for the characteristic „packaging“ as an example. The respondents clearly prefer the plastic bottle in the curved version, while the tetra pack has the lowest preference effect.

Two graphics side by side. Left: Relative importance of the features (pie chart). The diagram shows how strongly the individual features influence the purchase decision Right: Partial preference values (dimensionless) for the feature „packaging“ (bar chart) The bars show the preference value of the different forms of packaging, whereby the feature with the lowest preference is set to zero.
Figure 3: Relative importance of the characteristics and partial preference values of the „Packaging“ characteristic“
Image description

Left graph: Relative importance of the characteristics (pie chart) The diagram shows how strongly the individual features influence the purchase decision:

  • Price (52.3 %): By far the most important feature.
  • Packaging (20.3 %): Second most important criterion.
  • brand (16.0 %): Has a moderate influence on the election.
  • Claim (11.4 %): The advertising message is the least weighted feature.

Right graph: Partial preference values (dimensionless) for the characteristic „Packaging“ (bar chart) The bars show the preference value of the different forms of packaging, whereby the characteristic with the lowest preference is set to zero:

  • Tetrapack: Forms with a value of 0,0 the least favoured type of packaging.
  • Plastic bottle-Lidl (curved version): Highest preference value with 27,4.
  • Glass: Second most popular form with a value of 18,8.
  • Plastic bottle-Schwartau (straight version): Reaches a value of 17,2.
  • Plastic cup: Plays with a value of 1,7 hardly plays a role.

The relative importance of the features for the respondents„ choice decisions is shown on the left-hand side of Figure 3. The “price„ has the greatest significance with a relative importance of more than 50 per cent, while the product claim, i.e. the verbal “claim", tends to play a subordinate role in the decision.

The partial preference values of the characteristic attributes provide information on which attribute of a characteristic is particularly favoured by the respondents. The right-hand side of Figure 3 shows the partial preference values for the characteristic „packaging“ as an example. The respondents clearly prefer the plastic bottle in the curved version, while the tetra pack has the lowest preference effect.

Sources:

  • McFadden, D.: Conditional logit analysis of qualitative choice behaviour; in: P. Zarembka (ed.): Frontiers in Econometrics, New York 1974, pp. 105-142.
  • Völckner, F./Sattler, H./Teichert, T.: Wahlbasierte Verfahren der Conjoint-Analyse; in: Herrmann, A./Homburg, C./Klarmann, M. (eds.): Handbuch Marktforschung. Methoden - Anwendungen - Praxisbeispiele, 3rd edition, Wiesbaden 2008, pp. 687-712.

Yellow book cover with the title „MARKETING - Introduction to Theory and Practice“ in white and blue letters. At the bottom are two colourful, stylised hands that together form a heart. Authors: Andreas Scharf, Bernd Schubert, Patrick Hehn and Stephanie Glassl. Publisher: Schäffer-Poeschel.
Marketing textbook,
8th edition

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