Understand Customer Preferences using Conjoint Analysis in Python
What does the customer look for?
Think of a hypothetical business situation. The marketing manager for a leading brand of crisps is considering a new line of healthy variation of crisps. The company has looked into trends, competition, conducted exploratory focus groups and customer surveys. In the process, identified a number of attributes for the product like Price, flavor, weight, brand, fat-free, low-sodium and so on. The survey results from over n number of participants were collated.
Now as a Datascientist you are asked these business questions
We would like to know,
- Which of the features are most likely to resonate with consumers and lead to market success?
- How much is the customer “willing to pay”?
- What is the customer looking for?
- What is the customer psychology of choosing a product?
- What is customer’s best choice and what is the worst choice?
Marketing of a new product depends a great deal on the customers’ interest. Though the above questions look fairly qualitative trying to understand customer or consumer psychology, these questions can indeed be answered quantitatively by performing statistical analysis. In this…
