Conjoint analysis is an information gathering technique which has increased the effectiveness of computer-based interviewing. This investigative market research method employs interactive software to determine buyer preference on a particular product.


Printronix, a manufacturer of computer printers in Irvine, Calif., recently sponsored a nationwide conjoint analysis project using interactive software provided by Trade-Off Research Services.

The objective of this direct-mail project was to identify the buying habits of present and future customers as well as those purchasers of competitive products.

"We are in a market-driven, competitive printer industry where the customer has many choices and options," says Jack Andersen, vice president of domestic marketing for Printronix. "It is critical for the growth of this company that we know why customers buy or reject some printers over others.

Sample testing

A pre-qualified list of decision-makers, i.e., presidents, vice presidents, sales and marketing managers and MIS directors, were sent 100 diskettes with an average completion time of one-half hour. The sample diskette was mailed to fine tune the program prior to mailing a quantity of 1,600 in early January, 1987, and to ensure that questions asked in the survey were being asked properly.

To date, Printronix has received a response rate of 50% and anticipates a 90% return.

Understanding the marketplace

Results received by Printronix management will help the company better understand the computer printer marketplace. The company will be able to identify its customer base, what the "hot" buttons are and what type of products customers want now and in the future. Furthermore, the results tabulated will be able to provide insight to current and future product needs.

Particular marketing strategies can also be developed, e.g., on how to engineer the product, if it's accurately done to date, how to advertise the product and how best to sell it.

"It's critical to focus your product marketing message to the needs of the buyer," says Andersen. "If we have designed certain elements into our products and then fail to promote them, we lose market share. That's the bottom line, so it's important to know as much as possible about the buyer.

1,600 diskette surveys

During January 9-16, 1987, Printronix mailed 1,600 diskette surveys to a pre-qualified list of decision-makers. The surveys were divided according to the price range of the printers with only slight differences in the survey questions in both groups. Pre-qualifying also determined whether or not decision-makers were planning on purchasing new equipment and when and the willingness of the decision-makers to participate in the survey.

Cross-reference

Upon completion of the project and in characterizing the marketplace, Printronix will be able to cross-reference various respondents (e.g., MIS managers only; companies under $10 million; IBM-PC users only) to help identify and define vertical market potentials.

Additionally, "what if" analysis can be generated from the results. For example, if the speed of a printer were increased, with everything else remaining constant as it relates to quality and performance, how would this new input affect the current marketplace share?

Accurate data

Independent studies have shown that computerized interviewing results in more accurate data. Interviewer bias is eliminated, allowing the respondent to ponder a question as long as necessary without feeling pressured by an interviewer.

According to Andersen, "It provides Printronix a cost-effective, very accurate method of reaching lots of people in a very fast time frame and predicts how customers will make buying decisions.