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The Internal Validity of the Trade‐Off Method of Conjoint Analysis
Author(s) -
Safizadeh M. Hossein
Publication year - 1989
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1989.tb01560.x
Subject(s) - conjoint analysis , ranking (information retrieval) , preference , computer science , internal validity , econometrics , microeconomics , economics , statistics , artificial intelligence , mathematics
The discovery of consumers' preferences for multiattribute products/services has recently become possible with the development of conjoint measurement techniques. Conjoint analysis uses an individual's preference ranking or rating of some deliberately manipulated constructs of a concept to determine his/her numerically valued preferences for levels of those attributes that comprise the concept. Generally speaking, there are two methods of data collection for conjoint analysis: the full profile and the trade‐off methods. This paper calls into question the internal validity of the preferences obtained via the trade‐off method. An empirical analysis, which is based on the subjects' preferences for selecting a hospital, clearly shows that the estimates derived from the trade‐off method may not reflect consumers' true preferences.