Identification of key positioning factors in the retail sector: A conjoint analysis approach

Abstract

In the highly competitive retail environment, the success of retail companies deeply depends on their achieved levels of customer satisfaction. In order to create superior value and competitive advantages in the marketplace, retailers must understand the customers' desires, needs and behavior, and at the same time satisfy them more efficiently than the competition. Therefore, measuring consumer preferences, as well as determining the factors that drive them, is crucial for retail strategy planning. This paper introduces the methodology of conjoint analysis as an appropriate tool for evaluating the preferences and expectations of customers, as well as modeling the customers' retail options. Moreover, it has become increasingly shown that the information obtained through conjoint analysis can be used to predict customer behavior in new situations, and therefore to develop business solutions through differentiation.