A company wants to conduct a conjoint analysis to determine the most important attributes for their new
Question:
A company wants to conduct a conjoint analysis to determine the most important attributes for their new product launch. They decide to test four attributes: Price, Brand, Quality, and Packaging. They surveyed 1000 respondents, and each respondent was presented with four hypothetical products varying in these four attributes. The results are shown in the following table:
Attribute | Price ($) | Brand | Quality | Packaging | Number of Respondents |
---|---|---|---|---|---|
Product 1 | 10 | A | Low | Basic | 250 |
Product 2 | 20 | A | High | Fancy | 200 |
Product 3 | 15 | B | Low | Fancy | 350 |
Product 4 | 25 | B | High | Basic | 200 |
a) Calculate the average part-worth utility for each level of the four attributes. (8 marks)
b) What is the part-worth utility for a product with a price of $30, brand C, quality high, and packaging basic? (3 marks)
c) What is the importance weight for each of the four attributes? (4 marks)
d) Based on the results of this conjoint analysis, what is the ideal combination of attributes for the company's new product launch? (5 marks)
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg