PROJECT REPORT

TOPIC
MARKETING ANALYTICS
To study the laptop preference of
college students using Conjoint
Analysis

Submitted to –
Prof. Amar Saxena

Submitted by –
Arijita Das (PGPJ03009)
Kapil Verma (PGPJ03023)
Saurabh Pal (PGPJ03046)
Sonal Jain (PGPJ03049)
Versha Kaushik (PGPJ03060)
ABSTRACT
Laptops is the most important part of a college student’s life. It is mainly
used to get access to internet, store important study files and work on
vital projects. This study is to understand the preference of the students
and to know which attribute is more important while selecting the laptop.

INTRODUCTION
Laptop is purchased by analysing its attributes and students have to do
some trade-offs while selecting the best laptop for them. To understand
those trade-offs, researchers use conjoint analysis.

Customer needs are dynamic as new technologies are frequently coming

up in the industry. Company has to introduce new products in lines of
customer needs to retain or enhance the market share. For that,
Company has to understand the changing behaviour of trade-offs.
Conjoint analysis is helpful as it would clearly tell which attribute is valued
higher than others after part worth utilities are evaluated.
Theoretical background:

 Conjoint analysis is a multivariate technique used to understand how the respondent

constructs preferences over products or services.
 It provides a quantitative measure on the utility and relative importance of an
attribute compared to other attributes.
 This analysis can also be used for:
a. Designing price
b. Predicting the sales level or product usage (market share)
c. Testing new product concept
d. Preference segmentation
e. Designing promotional strategy

Business Scenario:

 Attributes of laptops which are commonly offered and widely known by consumers.
 The current laptop system is related to fast processor, large storage capacity, and
large RAM or memory.
 Manufacturers need to develop products that do not only meet the consumers’
requirement, but also affordable prices.
 Therefore, it is necessary for the manufacturers to know the product’s attributes
which is appropriate with the consumers’ needs.
 Indian PC market shrinks 8% in last quarter and hence, HP is planning to launch a new
product for the major group of laptop buyers in India to retain its sales volume.
 We are a part of market research company which has been hired by HP to know the
laptop preferences of its target segment.
Present Study:
Sample Data: -
 Students’ population in this study included higher secondary schools’ students and
universities students, were chosen as the population of interest as they are the major
group of the laptop buyers in India.
 Survey data were collected through questionnaires.
 The total sample consisted of 50 respondents.
 Demographic details: Gender, Age, Stream, Parental Income.

Attributes:
Brand: Dell, HP, Lenovo
Processor: i7, i5, i3
RAM: 16GB, 8GB, 4GB
Hard-Drive: 1024GB, 512GB, 256GB
Screen Size: 15.6”, 14.1”, 13”
Price: >60k, 40-60k, 30-40k

Questionnaire
 First step in the conjoint analysis is; the selection of the attributes and levels of
attributes.
 These attributes reflect key product characteristics which buyers can use to assess
the product.
 A full profile approach is used to design the product profiles. ( 3*3*3*3*3*3 = 729 )
 It is difficult, from a consumer’s point of view, to evaluate a large number of product
concepts.
 A fractional factorial design has been chosen to reduce the number of profiles to 18.

SPSS:- DATA - > ORTHOGONAL DESIGN -> GENERATE

Cards:
Preference Data:

Script File:
In SPSS, new script file would be created containing the cards, preference data, sequence
and factors.

CONJOINT PLAN = ‘Storage address of SPSS Cards File.sav’

/DATA = ‘Storage address of SPSS customer preference File.sav’
/SEQUENCE = Pref1 To Pref18
/SUBJECT = ID
/FACTORS = Brand (DISCRETE) Processor (LINEAR MORE) RAM (LINEAR MORE)
DISPLAY (DISCRETE) PRICE (LINEAR LESS)
/PRINT = SUMMARYONLY
Results:

*Coefficient of correlation between the

observed and estimated preferences is high.

*Processor being the most important factor

and Hard Drive being the least important
factor.
*Company can perform the trade-off between
processor and Hard-Drive.

 Higher the utility, preference of the consumers will be more.

 For e.g., higher price will have less utility.
Conclusion:

Brand Processor RAM Hard Drive Screen Size Price Utility

Dell i7 16GB 1024GB 13" 30-40k 17.8
HP i7 16GB 512GB 14.1" 30-40k 16.01
Lenovo i7 8GB 512GB 13" 40-60k 14.71
Lenovo i7 8GB 256GB 14.1" >60k 13.3
HP i7 4GB 1024GB 15.6" >60k 13.16
Dell i7 4GB 256GB 15.6" 40-60k 13.01
Lenovo i5 16GB 512GB 15.6" >60k 11.71
Dell i5 16GB 256GB 13" >60k 11.54
HP i5 8GB 1024GB 13" 40-60k 11.29
Lenovo i5 4GB 1024GB 14.1" 30-40k 10.59
HP i5 8GB 256GB 15.6" 30-40k 10.19
Lenovo i3 16GB 1024GB 15.6" 40-60k 10.01
Dell i5 4GB 512GB 14.1" 40-60k 9.859
Dell i3 8GB 512GB 15.6" 30-40k 8.01
Dell i3 8GB 1024GB 14.1" >60k 7.67
Lenovo i3 4GB 256GB 13" 30-40k 5.48
HP i3 16GB 256GB 14.1" 40-60k 5.377
HP i3 4GB 512GB 13" >60k 4.969

Final decision: This is the final chart that is prepared after calculating the utility score and
sorting in descending order, which the company can choose its cards according to its
feasibility and budget. Competition can also be analyzed in the segments through this chart.