Holistic Conjoint

In contemporary markets, consumers frequently face complex choice alternatives characterized by numerous features, making it challenging to measure the impact of those attributes on decisions using conjoint choice experiments. Consumers often simplify decision-making by employing heuristics or focusing on overarching benefits rather than meticulously evaluating each attribute. We propose and test a heuristic that assumes an energy-conserving consumer who evaluates a set of attributes holistically. We define the holistic dimension as the total number of features or benefits that a product or service offers. Our findings indicate that consumers utilize this holistic dimension as a heuristic. This insight has significant managerial implications. For instance, for consumers for whom the holistic dimension effect is positive and large, marketers should consider adding features to products even if consumers do not find the individual attributes very important. Additionally, we show that accounting for this heuristic in experimental designs enhances the reliability and validity of conjoint studies.