Question: Let us assume that HBAT is trying to develop a new industrial cleanser. After discussion with sales representatives and focus groups, management decides that three
Let us assume that HBAT is trying to develop a new industrial cleanser. After discussion with sales representatives and focus groups, management decides that three attributes are important: cleaning ingredients, form, and brand name. To operationalize these attributes, the researchers create three factors with two levels each:
| Factor | Levels | |
| Ingredients | Phosphate-Free | Phosphate-based |
| Form | Liquid | Powder |
| Brand Name | HBAT | Generic Brand |
In order to calculate the part-worth utilities, you coded the levels with (-1) and (+1) each. For example, phosphate-based (-1), phosphate-free (+1), powder (-1), liquid (+1), generic brand (-1), and HBAT (+1). Then you asked a person for ranking of the possible combinations. For example, to give 1 for the most preferred combination, going down to 8 for the least preferred combination. The ranking is expressed as:
Then you run regression to estimate all the s. The results show you
=-1;=-0.5;=-2
b) What is the attribute utility range for each attribute? (Please show the calculation process)
c) What is the relative importance of each attribute? (Please show the calculation process)
d) What are the insights from the attribute importance?
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