Question

Conjoint studies are run to understand how consumers make __________.

Answer 1

Conjoint studies focus on the analysis of consumer choices, examining the complex decision-making processes influenced by utility, personal preferences, income, and prices, instead of simple selection methods.

Step-by-step explanation:

Conjoint studies are run to understand how consumers make choices. These studies are firmly rooted in the economic theory of consumer behavior. At the core, consumers evaluate their preferences and decision-making processes not based on whimsy, like the game "eeny, meany, miney, moe," but rather on careful consideration of factors such as happiness, cost, and trade-offs between different goods and services. Utility, or the satisfaction derived from consuming goods and services, plays a significant role in these decisions. They carefully choose what provides them the highest level of utility within the constraints of their limited income, the prices of goods and services, personal preferences, and other circumstantial factors.

An economic explanation for consumer choice involves accepting that personal tastes dictate preferences, but also recognizing the influential role of incomes, prices, and external factors such as geographic location. Thus, conjoint studies help to dissect and analyze the multiple influences that guide how consumers allocate their spending in reality.

Answer 2

Conjoint studies are run to understand how consumers make TRADEOFFS. Tradeoffs is a technique wherein the person literally reduce an outcome in order to achieve a more desirable result that is beneficial to that person. In conjoint studies, people will weigh the product by its features and uses and will choose what is the most preffered feature to the least preferred feature.