Consumers' involvement in the decision making of health insurance scheme has been
minimal in Indonesia Healthcare services covered by the insurance scheme have
been centrally planned, overlooking consumer perceptions and expectation. As such.
anecdotal dissatisfaction has been often heard This paper introduces the potential
applications or conjoint analysis as a method of eliciting consumer preferences for an
improved Insurance benefit plan. Conjoint analysis is a unique multivariate survey
technique whereby researcher first constructs a set of real or hypothetical products or
services by combining selected levels of each attribute. These combinations are then
preserved to respondents, who provide only their overall utility evaluations. Discrete
choice conjoint modelling is preferred to other methods of valuation since it closely
resembles real life decisions while maintaining its predictive validity. Some
methodological issues must, nevertheless, be considered as 10ensure proper use of
this technique.
Keywords : conjoin analysis, consumer's preference, discrete choice. health insuranc
