Freqently Asked Questions
1. What are the benefits of working with W5 for conjoint analysis research?
W5 possesses a wealth of experience developing and designing relevant, actionable, and valid conjoint solutions for our clients. Unlike many other marketing research firms, W5 does not subscribe to the idea that a client’s needs can be met with a “standard” conjoint survey instrument. We work closely with our clients to design conjoint studies that meet their specific needs and objectives. Conjoint analysis is a complex methodology that requires specialized knowledge of Bayesian statistics, matrix manipulation, and valid conjoint instrument design. However, W5 understands that gaps exist between the foundations of conjoint analysis and the overall objectives of many clients. W5 serves as a partner that translates these foundations into realistic and actionable models to guide product strategy.
2. Is conjoint analysis appropriate for my research needs?
W5 reviews the objectives of each engagement to determine whether a conjoint study is the appropriate methodology. While insight gained from conjoint analysis answers many questions about product preference, price sensitivity, and brand loyalty with a high level of validity, conjoint analysis is a complex methodology that requires a great deal of thought and consideration on the part of respondents. When presented with numerous product attributes, prices, and brands, respondents often choose to focus on a smaller subset of the attributes most important to them, while diverting attention from attributes that may be of greater interest to the client. For engagements where there is interest in a specific objective (e.g., assessing brand equity), W5 will often recommend a methodology that requires respondents to focus on that specific attribute rather than a subset of their choosing.
3. Will conjoint market simulators predict my products’ market share?
At the conclusion of a conjoint engagement, W5 provides clients with a market simulator, developed using Sawtooth Software (http://www.sawtoothsoftware.com). The simulator is a stand-alone software package that allows clients to conduct alternative “what-if” scenarios. The market simulator is an effective tool for analyzing consumer preference for different product configurations among a competitive set. By fine-tuning individual product attributes and product price points, W5 clients are able understand whether product preferences will increase or decrease. While the market simulator is an effective tool for analyzing preference, establishing a product’s market share often requires greater information than available within the simulator. Advertising, product distribution and availability, and other external factors all drive a product’s realized market share; such exogenous influences are not accounted for within the market simulator. Therefore, the market simulator should be viewed as a tool for analyzing directional shifts in preference rather than an accurate predictor of market share.
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