Conjoint Analysis
Market research: assess consumer’s preferences
on homogenous class of products
Approach: describe products in terms of attributes and levels [conjoint structure].
Example: Cars = (Max.Speed) x (Gas Mileage)
Max. Speed = { 100 mph, 120 mph, 150 mph}
Gas Mileage = { 20 mpg, 17 mpg, 13 mpg, 10 mpg}
Pairwise Comparsions
150 mph 10 mpg
100 mph 20 mpg
Which car are you more likely to buy?
100 mph 13 mpg
120 mph 17 mpg
Tradeoff!
Marketing Approach
Given a set of products X Elicit consumer’s preferences from pairwise
comparisons [simulates real choice tasks] Only small [constant] number of questions per
respondent For each respondent value function
v: X →[0,1]
Netflix Challenge
Challenge: From given ratings predict rating of unrated movies.
Training data set: >100 million ratings from >480 thousand customers on ~18 thousand movies.
Test data: 2.8 million customer/movie pairs with the ratings withheld.
Compare to Netflix’ predictor ‘Cinematch’ Quality measure: root mean square error