Applying conjoint analysis to evaluate consumer preferences

Applying conjoint analysis to evaluate consumer preferences by F.H. Jacobsen & J.M. Joergensen. Tesla Motors' all electric vehicle Model S is a revolutionary car with several unique attributes. Through the use of a conjoint analysis, this paper examines Model S' key attributes and how these attributes are evaluated by potential consumers. Participants were asked to evaluate the Model S based on an array of selected attributes, that were identified through explorative qualitative interviews, which in turn were based on expert interviews with Tesla employees. Participants were asked to evaluate different models of the car based on a combination of these attributes. Through a conjoint analysis it was possible to find Model S' most preferred attributes for potential Tesla consumers. Also, a segmentation was performed through a cluster analysis for marketing purposes. Using the methodology and research design presented in this paper, practitioners are able to analyse consumer preferences towards a specific product and use that information for product development and segmentation.