Which Conjoint Analysis is Best for Your Restaurant: Choice-Based or Menu-Based?

What is Conjoint Analysis?

Conjoint analysis is a common market research method used to understand how consumers rank product offerings or service features. This analysis can help restaurant brands determine which menu items are most appealing to customers at different price points.

There are two main types of conjoint analysis: choice-based and menu-based. Let’s compare these two conjoint methods to see how they can help restaurant operators make data-driven business decisions.

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Unlock customer insights with our menu and choice-based analyses. Dive into our downloadable infographic to explore how each can elevate your brand strategy.

Choice-based Conjoint Analysis

Choice-based conjoint analysis helps restaurants understand customers purchasing decisions and how guests change preferences based on price when choosing specific menu items.

For instance, let’s say a restaurant brand wants to refine its pricing strategy for its existing products. In a choice-based conjoint analysis survey, researchers would present participants with several menu items, each at different price points. Participants would then be asked to choose which item they would most likely order.

By then analyzing the conjoint study results, brands will better understand what menu items customers prefer. They’ll also see how demand shifts when products or prices are changed. Armed with this insight, restaurants can then adjust their pricing strategy effectively.

Menu-based Conjoint Analysis

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

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

For instance, a restaurant brand might use menu-based conjoint survey to test different menu designs and new product offerings. They might present participants with several 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 restaurants might use a menu-based conjoint survey is to test how respondents build their meals by varying prices. The conjoint survey might present them with the same menu featuring varying prices and ask respondents to bundle their meal to simulate how they are likely to order in the real world.

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 implement price points across their menu that better meet consumer preferences while maximizing profitability.

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Which Conjoint Study is Best for Your Restaurant?

Both choice-based and menu-based conjoint testing 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 new or existing menu items and pricing strategies. It can be especially useful for identifying which specific menu items and price points are most important to your customers.

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

Ultimately, the choice 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 a conjoint pricing analysis as part of your market research strategy, let our restaurant 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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