Using conjoint analysis in industrial marketing: The role of judgment

Abstract

As the software improves, conjoint analysis is becoming an increasingly useful tool for analyzing benefit segments among buyers. In particular, conjoint analysis is suited to industrial marketing research, because the small sample size arising from a small population of buyers is not a problem as analysis is fundamentally at the individual level. Moreover, the mathematical elegance of the technique promises that the findings will be impressively precise. Experience suggests, however, that a great deal of art, or informed judgment, is required to support the scientific application of conjoint analysis. Many pitfalls can catch the unwary researcher by surprise. Close collaboration between commissioning managers and researchers should minimize the pitfalls through an iterative learning process that allows the researcher to make decisions in the context of the particular market and allows the manager to understand the meaning and limitations of the findings. The article discusses the lessons learned from three industrial marketing surveys, which are described at the outset. Decisions and problems encountered at the design, implementation, and analysis stages of the surveys are considered. Practical suggestions for avoiding common flaws are given.