Conjoint Analysis

by Irina 23. June 2007 12:29

Conjoint is a compensatory multiattribute model - it assumes that weakness on one attribute can be compensated for by strength in another. It assumes that the utility or value for a product can be expressed as a sum of utilities for its features or attributes.

U=U(a1)+U(a2)+U(a3)+ ...

Working assumptions:
  • Utilities can be measured by consumers’ overall evaluation of products where customers make tradeoffs among attributes.
  • Customers differs in their preferences and the value they place on different attributes.
  • Estimates of the utilities can be used to make market share predictions about new products
  • Next, we can ask customer to rank or rate, the profiles. The table below present rankings for a hypothetical customer, the profiles are coded as dummy variables

    data choc;
    input Chocolate $ Center $ Nuts $& Rating;
    datalines;
    Dark Chewy Nuts    7
    Dark Chewy No Nuts 6
    Dark Soft Nuts     6
    Dark Soft No Nuts  4
    Milk Chewy Nuts    9
    Milk Chewy No Nuts 8
    Milk Soft Nuts     9
    Milk Soft No Nuts  7
    PROC TRANSREG is used to perform a metric conjoint analysis.
    ods exclude notes mvanova anova;
    proc transreg utilities separators=", " short;
    title2 "Metric Conjoint Analysis";
    model identity(rating) = class(chocolate center nuts / zero=sum);
    run;
    The specification class(chocolate center nuts / zero=sum)
    designates the attributes as class variables with the restriction
    

    that the part-worth utilities sum tozero within each attribute.

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