Where to Start With Market Research: Part 3 Choice-Based Conjoint
Choice-based conjoint is the most recent addition to the Alchemer market researcher’s toolkit. Sometimes abbreviated to CBC, choice-based conjoint evaluates which attributes in a product customers value the most. This is done by presenting survey respondents with multiple variations of a product, each with a randomized combination of attributes. Over several questions, respondents are asked to choose which combination of attributes they would be most likely to purchase.
The results are then fed into an equation and calculated by Alchemer’s reporting analysis system to determine which attributes are most influential to consumers as they are making their purchasing decision.
Alchemer’s conjoint is powerful enough for sophisticated market researchers, without the headache of many other programs. (And at an affordable price point that can’t be beat.)
Using Conjoint Analysis to Determine Market Priorities
Conjoint analysis is best suited to questions of: product development, competitive positioning, studying price points, segmentation, resource allocation, and product analysis.
With so many possible pieces in play, designing and administering a conjoint analysis is a complex undertaking. But, when it comes to collecting concrete data on what features really influence your customers to buy, there is no better method than this.
Tips for Designing a Good Choice-Based Conjoint Survey
Choice-based conjoint is a flexible, powerful tool that is endlessly adaptable to your unique needs. This gives you plenty of room to design the exact study you need, but it also means you can easily make a mistake.
Keep these tips in mind as you design and build your choice-based conjoint survey:
1. Limit Your Attributes
There are probably dozens of characteristics that differ among your offerings and those of competing businesses. It’s important to narrow down the list to only those that are relevant. (The results from your competitive analysis surveys and customer surveys will help narrow down the options.)
Too many attributes will make your survey difficult to read and can lead to survey fatigue and a rise in incomplete survey responses.
2. Choose Realistic Levels
Select the levels of your attributes in ways that make sense for the industry you operate in and the demographic you’re targeting. If you are planning on setting affordable wristwatches, for example, you wouldn’t set a possible price attribute level at $1,000.
3. Spend the Time to Do It Right
Because of the large number of variables and considerations you have to deal with when designing a choice-based conjoint survey, it really pays to do your work thoroughly. This means putting in your homework before you launch your survey, too, by researching your competitive landscape and potential customers.
As we mentioned in step 1, preliminary research and smaller conjoint-based surveys can gauge the right levels and attributes to include in your “real” one. While it may seem like an additional investment of time and money, doing your homework before the big test always pays off.
Finding Respondents for Your Study With Help From Panel Companies
When time is of the essence or you are looking for a particular audience demographic that would be difficult for you to find on your own, contracting with an outside panel company is the best way to save time.
While it will be an up-front cost to contracting with a panel company, in many cases the amount of time you save is worth it.
Remember, however, that not all panel companies are created equal. You will need to identify the best panel company based on the target audience you need for your surveys, as panel companies do tend to specialize in geographic areas, demographics, or industries. The best thing to do when vetting panel companies yourself is to schedule time to speak directly with a project manager.
Once you have identified a panel company, then you will work with the panel company to determine pricing, which usually depends on the length of your survey, the number of responses needed, and the specificity of your target demographic.
To make working with panel companies easier, Alchemer has well-established relationships with seven of the most respected panel companies in the industry. Our panel program manager will work with you to determine which panel company is right for you, then negotiate the best price for your project.
Alchemer: One Stop Survey Solution for Market Researchers
Many pre-existing software options that are available to market researchers, however, can only really do one thing well. Some excel at collecting qualitative data. Some focus on one kind of survey data collection type. Others are really good at analyzing the numbers, but the raw data has to be imported from elsewhere.
What you really need is the one tool that really can do it all for market researchers, from data collection to analysis to reporting. A full featured survey software platform like Alchemer allows you to do more faster and more cost-effectively because all of your data collection, analysis, and visualizations are created and stored in the same place.