Conjoint analysis is a research methodology that is used to assign specific values to the range of options buyers consider while making purchase decisions. By examining the various attributes of a product or service and the trade-offs between them, and by assigning suitable weights, conjoint analysis helps buyers to reach a satisfactory conclusion about a product or service. Consumers examine a range of features or attributes and then make judgments on trade-offs to determine their final choice. Conjoint analysis examines these preferred trade-offs to determine the combination of attributes that will be most satisfying to the consumer.

As against traditional-survey approaches, conjoint analysis allows analysts to compute the relative importance of the attributes that are studied. This enables the development of market-simulation models that can be used well into the future.

The process is really very simple. To begin with, the data collected is analyzed in various steps. From this analysis, as well as from many measurements that predict any change, or changes over time, an indication of the market's pattern and direction emerges.

This data is then studied by market experts, including key customers such as government regulators, management consultants, and market research consultants. These experts often provide significant strategic insights on the direction and velocity of the market. The data is re-examined to determine the optimal features for a product or service. Armed with this knowledge, marketers can focus on the most important features of products or services and design messages that are most likely to strike a cord with target customers.