Conjoint analyses are useful in determining demand functions.
A conjoint analysis enables the determination of specific preferences as well as the valuation of the benefits that consumers get from consuming products.
On this basis, it can then be determined which products are perceived by consumers as substitutes and thereby the relevant market can be defined. Other factors that influence consumers´ buying decisions such as budget constraints or the availability of goods on the market are also included in the analysis and contribute to the calculation of market shares.
This is the basis for specific market simulation models which make the quantitative analysis of consumer behaviour possible.