Each of these is a sophisticated, multivariate technique used to obtain important information about markets and to formulate marketing strategy. Conjoint analysis is used to measure utility.
Factor analysis is used to measure response patterns.
And, cluster analysis is used to group individuals, or to form segments, according to a wide range of variables or characteristics. The multivariate nature of each of these techniques means that many variables are involved in their calculation. This stands in sharp contrast to cross-tabulations where variables are only considered two at a time. A typical conjoint analysis could easily involve eight or more variables, while a typical factor analysis could involve literally hundreds of variables. For example, consider the reasons why consumers choose to visit particular pharmacies or physician's offices.