You work in product development for the concession arm of AMC movie theaters, and you are...

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You work in product development for the concession arm of AMC movie theaters, and you are tasked with identifying the best combination of foods to use in a new snack box option. You have already surveyed your customer base to determine their ratings for various snack boxes. This analysis has generated the following report. The snack boxes each have the attributes of: 1) Beverage: levels of Apple Juice (base), Coke, Fanta 2) Mini-Candy: levels of Toblerone (base), M&M's 3) Spread: levels of Peanut Butter (base), Nutella, Honey 4) Salty Snack: levels of Chips (base), Pretzels 5) Price: $4, $5 (base), $6 Intercept Coke Fanta M&Ms Nutella Honey Pretzels $4 $6 Coefficients tandard Err t Stat 0.66 0.53 0.53 0.43 0.53 0.53 0.43 0.53 0.53 5.58 -0.50 -3.00 -0.35 -0.83 -0.17 -0.15 1.50 -1.50 8.49 -0.94 -5.67 -0.80 -1.57 -0.31 -0.34 2.83 -2.83 P-value 0.00 0.37 0.00 0.44 0.15 0.76 0.74 0.02 0.02 Lower 95% Upper 95% Lower 95.0% Upper 95.0% 7.07 4.10 4.10 7.07 -1.70 0.70 0.70 -4.20 -1.80 -1.80 -1.33 0.63 0.63 -2.03 0.36 -1.36 1.03 -1.13 0.83 0.30 2.70 -2.70 -0.30 For each question below, show how you arrived at the answer (2 points each). 1. What is the "base" product, and how many utils does it give this customer? 2. What are the part-worths (i.e., importance) of each attribute? 4. Compute the relative importance of each attribute. Which one is the most important? 3. What is the ideal product for this consumer? 5. Compute the willingness to pay for Apple Juice over Coke. 6. Compute the willingness to pay for Honey over Nutella. -1.70 -4.20 -1.33 -2.03 -1.36 -1.13 0.30 -2.70 0.36 1.03 0.83 2.70 -0.30 You work in product development for the concession arm of AMC movie theaters, and you are tasked with identifying the best combination of foods to use in a new snack box option. You have already surveyed your customer base to determine their ratings for various snack boxes. This analysis has generated the following report. The snack boxes each have the attributes of: 1) Beverage: levels of Apple Juice (base), Coke, Fanta 2) Mini-Candy: levels of Toblerone (base), M&M's 3) Spread: levels of Peanut Butter (base), Nutella, Honey 4) Salty Snack: levels of Chips (base), Pretzels 5) Price: $4, $5 (base), $6 Intercept Coke Fanta M&Ms Nutella Honey Pretzels $4 $6 Coefficients tandard Err t Stat 0.66 0.53 0.53 0.43 0.53 0.53 0.43 0.53 0.53 5.58 -0.50 -3.00 -0.35 -0.83 -0.17 -0.15 1.50 -1.50 8.49 -0.94 -5.67 -0.80 -1.57 -0.31 -0.34 2.83 -2.83 P-value 0.00 0.37 0.00 0.44 0.15 0.76 0.74 0.02 0.02 Lower 95% Upper 95% Lower 95.0% Upper 95.0% 7.07 4.10 4.10 7.07 -1.70 0.70 0.70 -4.20 -1.80 -1.80 -1.33 0.63 0.63 -2.03 0.36 -1.36 1.03 -1.13 0.83 0.30 2.70 -2.70 -0.30 For each question below, show how you arrived at the answer (2 points each). 1. What is the "base" product, and how many utils does it give this customer? 2. What are the part-worths (i.e., importance) of each attribute? 4. Compute the relative importance of each attribute. Which one is the most important? 3. What is the ideal product for this consumer? 5. Compute the willingness to pay for Apple Juice over Coke. 6. Compute the willingness to pay for Honey over Nutella. -1.70 -4.20 -1.33 -2.03 -1.36 -1.13 0.30 -2.70 0.36 1.03 0.83 2.70 -0.30

Answer rating: 100% (QA)

Solution 1 The base product is the 5 snack box that includes Apple Juice Chips Peanut Butter Toble... View the full answer