Question

Which of the following is an example of a dependence technique used to gain insights into the combination of features that will be most attractive to customers?

A) Regression Analysis
B) Sensitivity Analysis
C) Conjoint Analysis
D) Factor Analysis

Answer 1

The technique that is used to gain insights into the combination of features that will be most attractive to customers is C) Conjoint Analysis.

Step-by-step explanation:

Conjoint analysis is a statistical technique used in market research to determine how people value different attributes (feature, function, benefits) that make up an individual product or service. In this analysis, survey respondents are given a set of products or services with different combinations of features, and their task is to rank or choose between these alternatives. By analyzing the responses, one can determine the implicit valuation of the individual elements comprising the product or service. This method helps in understanding customer preferences and can inform product design, marketing strategies, and pricing.

For clarity, here are brief descriptions of the other terms listed:

• A) Regression Analysis: A statistical method for investigating the relationship between a dependent variable and one or more independent variables.
• B) Sensitivity Analysis: A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.
• D) Factor Analysis: A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.