Using conjoint analysis to create superior value to customers

Abstract

Given the increasing intensity of business competition, the attitude towards the customer is very important; their role has changed from that of a mere consumer to the role of consumer, co-operator, co-producer and co-creator of value. To determine key dimensions of customer value, in this paper we propose conjoint analysis. Conjoint analysis is a research technique for measuring customers' preferences, and a method for simulating how customers ought react to changes in current products or to new products introduced into an existing market. Using an illustrative example, we will demonstrate the usefulness of conjoint analysis to bridge the information gap between the company and its customers, by confronting the value the company intends to offer with the value desired by its customers.