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CA is a trade-off method analysis that has gained a wide support among market researchers. CA attempts to determine the relative importance consumers attach to the salient attributes, including the price, of a particular product or service category. This information is derived from consumers’ evaluations of different product profiles composed of different attributes and attribute levels. The respondents are asked to evaluate and rank different product category profiles in terms of their desirability. The aggregate ranking of the profiles are then utilized to develop utility functions that describe the utility consumers attach to the levels of each attributes. Through this model one can evaluate how sensitive the customers are to a change in different attributes of a product. This method is widely used by market researchers and is regarded as one of the most effective ways of determining customer sensitivity toward changes in price and quality of a particular product or service.
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