A Game Theoretical Approach to Conjoint Analysis

Abstract

The aim of the study is to combine the results of Conjoint Analysis, which is frequently used to determine customer preferences in marketing and market research areas, with Game Theory as suggested in the article of Choi and DeSarbo (1993). In this context, the application of the proposed approach was made within the framework of the factors affecting private university preferences of university candidates and the marketing decisions of school administrations. Student preferences were determined by the choice-based conjoint analysis method. As a result of a study conducted with 296 prospective students who were in the selection process after the 2016 university entrance exams. The reasons for preference in order of importance were determined as the availability of the program to be studied, the academic reputation of the school, and campus facilities. The data related to the characteristics of university managements care in their marketing activities obtained from the interviews with the school administrators and the data obtained from the Conjoint Analysis of students’ reasons for preference were used as input in the payoff matrix organized in the context of Game Theory, and the solution of the game was completed as a two-person zero-sum game. As a result of the application of the method with empirical data, it is observed that how student preferences will change when the weights of strategic marketing factors change in the decisions taken by school administrations from the business point of view. In addition, with the help of this approach and by obtaining competitor data, it allows to describe the situation of the market in general and to make a comparative evaluation of each university on its own.

Keywords

• Game Theory
• Conjoint Analysis
• University Preference

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