Using conjoint analysis to identify key factors influencing customer value

Abstract

In today's global economy there is clearly need for companies to develop further their understanding of the markets in which they operate and skilfully apply this understanding in the creation of competitive advantage. Consequently, companies should incorporate the 'voice of the customer' into the design of new products and focus on customer value, thereby offering total solutions to customer needs. To,identify key factors influencing customer value the paper proposes conjoint analysis. Conjoint analysis is a research technique for measuring customers' preferences, and it is a method for simulating how customers might react to changes in current products or to new products introduced into an existing competitive market. The paper highlights 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.