Which of the following statements is true of conjoint analysis?
A) It primarily considers variety-seeking behavior among consumers.
B) It assumes that one cannot represent a product as a set or bundle of attributes.
C) It is similar to multidimensional scaling as it considers overall similarities rather than specific attributes.
D) It identifies which sets of attributes would be most preferred by customers.

Question

Quizplus · Accepted Answer

Conjoint analysis is a method used to understand how customers value different attributes (features) of a product or service. It involves presenting customers with different product profiles, which are a combination of different levels of attributes. By analyzing the customers' preferences and choices, conjoint analysis can identify which sets of attributes would be most preferred by customers. Therefore, statement D is the only true statement.

Which of the Following Statements Is True of Conjoint Analysis