Methodology > Private sector > “Trade-Off” for predicting buying behaviour

Private sector

“Trade-Off” for predicting buying behaviour

This method, also known as conjoint analysis, is used to estimate the simultaneous effect of several offer features on consumer preferences. The most common use for this is to evaluate different hypotheses for the product mix, by varying the levels of functionality, services, and cost. Another use is for simulation, which enables different product offerings to be evaluated. To a certain extent, it is possible to measure and simulate the impact of introducing a new offer on market share.

Trade-off is based on the hypothesis that consumers follow an incentive-based process until they choose a product. The object of the study is therefore to create a situation that leads the interviewee (the consumer) to reveal (indirectly) their expectations related to a product or offering, by observing the choice process and the order in which they rank different products that are proposed. In this method they trade off the benefits perceived in one feature against the drawbacks perceived in other features of the same product. The analysis of this compromise is the object of the conjoint analysis or Trade-Off.

This type of research offers you the opportunity to look at all data concerning the buying behaviour of your target market. This way, you benefit from an essential decision tool for choosing the product mix, guaranteeing optimal profitability.