I. Conjoint Analysis $(8$ points$)$

$(*$Note: if the question involves any calculation, please be sure to include the detailed calculation steps. You may refer to the product analytics$/$conjoint analysis in$-$class worksheet, while calculating the number and identify the best configuration$).$

Scenario: Waze managers want to examine consumers$$ preferences on certain product features $($Route Alternatives$,$Map Layout$,$ and $$Store Nearby$)$ of its mobile application to decide whether they shall make any changes to its existing app configurations. The current map features are configured as $1-3$ route alternatives, $3$D map layout, with gas stations marked along each driver$$s route.

To get the information, product managers conducted a choice$-$based conjoint analysis $($using the binary logistic regression model approach$).$ The following table shows three product features, with detailed options within each. The coding information $($numbers within the parentheses$)$ is also summarized in the table:

Route Alternative Map Layout Store Nearby

$1-3$ routes $(1)2$D $(1)$ Fast food Restaurant $(1)$

$3+$ routes $(2)3$D $(2)$ Gas Station $(2)$

ATM $(3)$

$1)$ To identify the $$best$$ feature configuration in this scenario, at least how many different configurations $($or combinations$)$ that Waze managers shall test in the conjoint analysis?

To identify the $$best$$ feature configuration Waze manager should test three different configurations:

$-$ Route Alternatives: $1-3$ routes ; $3+$ routes

$-$ Map Layout: $2$D ; $3$D

$-$ Stores Nearby: Fast food restaurant ; Gas station ; ATM

$2)$ After collecting customer$$s feedback, managers ran a conjoint analysis and the empirical results are summarized below.

a$.$ Given the p$-$value performance of each product option, do you think that the $$best$$ product feature configurations can be applied to all Waze customers? Why or why not?

b$.$ If managers were to reconfigure its mobile app$$s features, based upon the empirical results $($specifically using information provided from the first column of the table$),$ which feature$($s$)$ would you recommend managers change? Please simply explain the reason. $(*$Please note that the current map features are configured as $1-3$ route alternatives, $3$D map layout, with gas stations marked along each driver$$s route$).$

Variables in the Equation

B S$.$E$.$ Wald df Sig. Exp$($B$)$

Route Alternatives$(1)-\mathrm{.}083\mathrm{.}106\mathrm{.}6241\mathrm{.}430\mathrm{.}920$

Map Layout$(1)-\mathrm{.}059\mathrm{.}106\mathrm{.}3151\mathrm{.}575\mathrm{.}942$

Stores Nearby $1\mathrm{.}5572\mathrm{.}459$

Stores Nearby$(1)\mathrm{.}114\mathrm{.}131\mathrm{.}7551\mathrm{.}3851\mathrm{.}120$

Stores Nearby$(2)-\mathrm{.}045\mathrm{.}127\mathrm{.}1241\mathrm{.}724\mathrm{.}956$

a$.$ Variable$($s$)$ entered on step $1$: Route Alternatives, Map Layout, Store Nearby.