conjoint measurement

Conjoint measurement, also referred to as conjoint analysis, is a multivariate method used to determine customer benefit and willingness to pay.

In order to determine the utility of product characteristics for the customer and their willingness to pay, customers must rank various products with different characteristics. These different characteristics may, for example, be technical specifications, trademarks or additional services. The individual willingness to pay can be determined by considering the different customer preferences for the separate components. The advantage is that this selection procedure comes very close to a real purchase decision. The conjoint measurement offers a good basis for setting utility-based prices.