Which Conjoint Analysis is Right for Your Restaurant Brand – Choice-Based or Menu-Based?

Conjoint analysis is a commonly used market research technique that helps businesses determine how consumers value different attributes of a product or service. For restaurant brands, conjoint analysis can be particularly useful for identifying which menu items are most appealing to their customers at a given price.

There are two main types of conjoint analysis: choice-based and menu-based. Let’s explore the differences between these two approaches and see how they can help restaurant brands make more data-driven decisions.

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While both provide deep insights, it’s vital to understand which will serve you best. Download the infographic for a rundown of how each analysis will serve your brand.

Choice-based Conjoint Analysis

Choice-based conjoint analysis helps restaurants understand how consumers make decisions and change preferences when faced with sets of comparable alternatives at varying prices. In this type of study, participants are presented with a series of menu items and are asked to choose their preferred option from each set. Sets are made up of different levels of prices that vary systematically.

For example, let’s say a restaurant brand wants to test menu items and pricing strategies. In a choice-based conjoint analysis, they would present participants with several menu items, each at different price points, and ask them to choose which item they would most likely order.

By then analyzing the choices made by participants, restaurant brands determine preferences for each menu item and price level. Brands will also be able to see how demand shifts when products or prices are changed. Defining optimal price points and price elasticity for their products allows restaurants to remove guesswork and adjust their menu accordingly.

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Menu-based Conjoint Analysis

Menu-based conjoint analysis helps restaurants understand how consumers make choices across the menu when faced with varying prices or item selections.

Unlike choice-based conjoint analysis, where respondents are presented with individual options and asked to make a choice, menu-based conjoint analysis presents participants with a complete menu and asks them what they would most likely purchase.

For instance, a restaurant brand might use menu-based conjoint analysis to test different menu layouts and new menu items. They might present participants with several different menus, each with different combinations of appetizers, entrees and desserts, and ask them to select or rate each menu based on how likely they would be to order from it.

Another example of how a restaurant brand might use menu-based conjoint analysis is to test how respondents are building their meals by varying prices. They might present participants with the same menu featuring varying prices and ask them to build their meal to simulate how they are likely to order in real life.

By then analyzing the results, brands can uncover which menu items and prices are most appealing to their customers. Restaurants can then use this information to price their menu in a way that better meets customer preferences while maximizing profitability.

Which Approach is Best for Your Restaurant?

Both choice-based and menu-based conjoint analysis can be effective for your restaurant brand. You just first need to consider what specific business questions your brand wants to answer. You can download our infographic to see the main benefits each analysis type offers.

Choice-based conjoint analysis is best suited for testing individual attributes and levels, such as menu items and pricing strategies. It can be especially useful for identifying which specific menu items and price levels are most important to your customers.

Menu-based conjoint analysis, on the other hand, is better suited for testing overall menu configurations and layouts. It can help you identify which combinations of menu items are most appealing to your customers and help you design a menu that better meets customer preferences and your business goals.

Ultimately, the choice between choice-based and menu-based conjoint analysis will depend on your restaurant’s specific research objectives. By selecting the right approach and collecting data from your target audience, you can gain valuable insights into customer preferences and create menus that are more profitable and appealing to your guests.

Get Started with Conjoint Analysis

If your restaurant brand is considering using conjoint analysis as part of your market research strategy, let our data experts help you gain a competitive edge and grow your business. Contact us today to get started and find out what matters most to your customers.

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