Conjoint Analysis: Using discrete choice modelling in market research

Choice-Based Conjoint Analysis

In choice-based conjoint analysis, a set of products is presented to consumers in a similar manner to the real marketplace situation. They decide which one is the most attractive for them. (fig. by author)

In the previous article, I introduced a conjoint analysis and provided some examples of how useful the market research method is. I recommend you to read it first.

Choice-based conjoint analysis (CBC, or: discrete choice modelling, discrete choice experiment, experimental choice analysis, quantal choice models) uses discrete choice models to collect consumer preferences. The main difference distinguishing choice-based conjoint analysis from the traditional full-profile approach is that the respondent expresses preferences by choosing a profile from a set of profiles, rather than by just rating or ranking them. The basic idea of choice-based conjoint analysis is to simulate a situation of real market choice.

After reading this article, you will know:

• what are the uses of choice-based conjoint analysis,
• how to design experiment,
• how to analyse collected data.

Design of experiment

The choice between different products. Products are described as sets of different combinations of attribute levels — profiles. (fig. by author)