ABSTRACT
Conjoint analysis is a measurement technique for quantifying buyer trade-offs that can be directly used in pricing decisions. In this chapter, the authors briefly introduce reader to the conjoint method and show, in a step-by-step manner, how it can be applied to estimate reservations prices and then calculate optimal prices in practice. Broadly speaking, conjoint analysis is about revealing customers’ preferences for product or service attributes by having them choose between various options. Conjoint reservation prices can only be estimated in the price range we have used in the questionnaire. The calculations done reveal reservation prices outside this range.
