Customer preferences using conjoint analysis: A case study of Auto industry

Abstract

One of the primary concerns in product development is to meet customers' wishes and this could be accomplished through detecting the most popular characteristics of products. In other words, the fulfillment of customers' preferences in a profitable way needs that companies recognize which specifications of their product and service are most valued by the customer. Conjoint analysis is believed to be one of the most popular techniques for achieving this purpose. Conjoint analysis includes generating and conducting specific experiments among customers for modeling their purchasing decision. This paper presents an empirical investigation on detecting appropriate customer preferences in an auto-industry. The results of the survey indicate that price, braking system and having airbag are the most important characteristics for selling cars in Iranian market.