Conjoint (trade-off) analysis is one of the most extensively employed quantitative methods in Marketing Research. It is used to quantify inclinations for product attributes, to study how fluctuations to price impact demand for products or service, and to estimate the likely acceptance of a product if brought to market. Instead of asking the respondents directly about the specific feature they feel the most important in the product or they prefer in one particular product; conjoint analysis exhibits more realistic context on the basis of evaluation of potential product profile (with multiple conjoined product features) by the respondents
In a nut-shell, a subset of probable arrangements of product features is used to decide the comparative significance of each attribute in the purchasing decision. Hence, analysis is based on the fact that considering the values of attributes individually is less significant than relative values of attributes considered together. While proceeding with the conjoint analysis, the participant may be asked to organize different combinations of product features in decreasing order of preference. After obtaining this ranking, next step is to find out the utilities of different values of each feature that would provide participant’s order of preference. The utilities can be defined with the help of subset of possible feature combinations.