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Chapter 10 - Report - Book Report/Review Example

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According to Jennewein (307), conjoint analysis allows meticulous investigation about purchasing decision in customers concerning product features and brands using multivariate techniques. Hence, conjoint analysis being a technique that relies on survey makes it is possible for…
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Chapter 10 - Report
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Download file to see previous pages Conjoint analysis is a technique for developing utility values attached to the various levels of object attributes by customers. Conjoint analysis involves various phases including choosing the attributes to investigate, choosing data gathering method, composing concept cards, choosing presentation format for product attributes, assigning a measurement scale, data gathering and modeling of the preferences (Kotri 10). Nevertheless, the technique requires respondents to carry out a hypothetical comparison of products and brands using descriptive profiles that are developed through systematic combination of varying levels of key attributes. One approach in obtaining customer preference in conjoint analysis is the trade-off approach where customers grade their preferences by considering a combination of attributes at a time. Although the approach is easy for customer, it is to a certain extent unrealistic because it only offers partial stimuli to respondents. Another approach for obtaining customer preference is the use of the full-profile approach where customers rank their preferences for the different profiles embodying all the potential combinations of the attributes (Parasuraman and Ramu 498).
Conjoint analysis is useful in analyzing the effects of certain product preferences in customers. This technique enables correct evaluation of utility when there are alternative product concepts, which in return supports decision making in marketing management (Veith and Costin 148). Even though, conjoint analysis involves a sophisticated survey design and analysis as well as more effort by respondents, the technique is essential because simple approaches can be useless in effectively communicating preferred customer attributes. Conjoint analysis uses concrete description as a basis for attributes, which results in better understanding of the significance of attributes. Moreover, conjoint analysis offers great realism and broadens the ...Download file to see next pagesRead More
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