Choice-Based Conjoint Analysis

Conjoint analysis is one of the most popular methods to measure preferences of individuals or groups. It determines, for instance, the degree how much consumers like or value specific products, which then leads to a purchase decision. In particular, the method discovers the utilities that (product) attributes add to the overall utility of a product (or stimuli). Conjoint analysis has emerged from the traditional rating- or ranking-based method in marketing to a general experimental method to study individual’s discrete choice behavior with the choice-based conjoint variant. It is therefore not limited to classical applications in marketing, such as new product development, pricing, branding, or market simulations, but can be applied to study research questions from related disciplines, for instance, how marketing managers choose their ad campaign, how managers select internationalization options, why consumers engage in or react to social media, etc. This chapter describes comprehensively the “state-of-the-art” of conjoint analysis and choice-based conjoint experiments and related estimation procedures.