Conjoint Analysis

Formulate the Problem

Sneaker Attribute and Levels
Attribute

Level No

Description

Sole

Rubber

Polyurethane

Plastic

Leather

Canvas

Nylon

30 USD

60 USD

90 USD

Upper

Price

CONSTRUCT THE STIMULI- PAIRWISE APPROACH

SOLE
RUBBER
UPPER

POLYURETHANE

PLASTIC

LEATHER
CANVAS
NYLON
SOLE
RUBBER

PRICE

POLYURETHANE

PLASTIC

30 USD
60 USD
90 USD

PRICE
30 USD

UPPER

LEATHER
CANVAS
NYLON

60 USD

90 USD

Full-Profile Approach to Collecting Conjoint

Analysis
EXAMPLE OF A SNEAKER PRODUCT
PROFILE
SOLE

MADE OF RUBBER

UPPER

MADE OF NYLON

PRICE

30 USD

Coding
X one

X two

Level 1

Level 2

Level 3

Sneaker Profiles and their Ratings

ATTRIBUTE LEVELS
PROFILE NO. SOLE

UPPER

PRICE

PREFERENCE RATINGS

Conjoint Analysis Model

For us

Sneaker data coded for Dummy Variable

Regression

Estimation of the parameters

Context of dummy variables

Given the dummy variable coding in which level 3
is the base level, the coefficients may be reduced to
part worths
Each dummy variable coefficient represents the
difference in the part worth for that level minus
the part worth for the base level. For sole we have
the following:

 To solve for the part-worths, an additional

constraint is necessary. The part-worths are
estimated on an interval scale, so the origin is
arbitrary. Therefore the additional constraint
that is imposed is of the form:

These equations for the first attribute,

Sole, are:

So

Similarly we can solve for other attributes

RESULTS
ATTRIBUTE No.

Description

Sole

Rubber
Polyurethane
Plastic
Leather
Canvas
Nylon
30 USD
60 USD
90 USD

Upper

Price

3
2
1
3
2
1
3
2
1

LEVEL
Utility
0.778
-0.556
-0.222
0.445
0.111
-0.556
1.111
0.111
-1.222

Importance

0.286

0.214

0.500


Highest
Lowest
Highest
lowest
Highest
Lowest

Part-worths

0.778
-0.556
-0.222
0.445
0.111
-0.556
1.111
0.111
-1.222
sum of part-

Difference
between the
highest and
lowest

1.334

1.001
2.333

Relative Importance of attributes

SOLE

1.334/4.668=0.286

UPPER

1.001/4.668=0.214

PRICE

2.333/4.668=0.5

Preference for Attribute Levels

Sole
1
0.8
0.6
0.4

Sole

0.2
0
Rubber
-0.2
-0.4
-0.6
-0.8

Polyurethane

Plastic

Preference for Attribute Levels

Upper
0.6
0.4
0.2
0
Leather
-0.2
-0.4
-0.6
-0.8

Upper
Canvas

Nylon

Preference for Attribute Levels

Price
1.5
1
0.5
0
30 USD
-0.5
-1
-1.5

Price
60 USD

90 USD

Assessing Reliability and Validity

Look at the R square
Test-retest reliability
If an aggregate analysis has been conducted, the
estimation sample can be split and conjoint
analysis conducted on each sub-sample. The
results can be compared across sub-samples to
assess the stability of conjoint analysis solution.

Sneaker data coded for Dummy Variable

Regression

Estimation of the parameters

These equations for the first attribute,

Sole, are:

Sneaker data coded for Dummy Variable

Regression

Estimation of the parameters

These equations for the first attribute,

Sole, are: