Pizza Shanghai, a boutique pizza chain that positions itself as purveyor of 'adventurous' pizzas hired you...

  

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Pizza Shanghai, a boutique pizza chain that positions itself as purveyor of 'adventurous' pizzas hired you to offer advice on developing new pizzas for the company. You decided to run a conjoint study. The table below shows the "utilities" (part-worths) of the key pizza attributes for the firm's target segment in Shanghai based on the conjoint study. Crust Pan Utility 0 Amount of Cheese Utility 2 oz 0 Thin -5 4 oz 8 Thick 15 6 oz 15 Topping Utility Price Utility Cheese Utility Durian 0 9.88 0 Yak 0 Tofu -5 8.88 20 Edam 3 Duck 25 7.88 40 Feta 10 Abalone 30 Q2a) If we change the crust from 'pan' to 'thin' how much more/less would a customer from this segment be willing to pay? How about if we change the crust from 'pan' to 'thick'? (5 points) Q2b) Suppose Pizza Shanghai is thinking of launching a new pizza in Shanghai. The two alternative pizza designs are: Skinny Thai Aroma Special Thin 4 oz. Durian 7.88 Edam Fat Bird-Lover's Delight Thick 6 oz. Duck 9.88 Yak Of the two designs, which one seems to be preferable based on the conjoint results? (show numbers). (5 points) Q2c) Suppose you went ahead with the 'optimal' pizza based on a conjoint study forecasting a 40% market share. Unfortunately, after the launch the actual market share for the new pizza was merely 20% - half of what the conjoint predicted. Your boss, Ms. Paula Izza, is not too happy and seriously considers firing you. What may you have overlooked (5 points)? Pizza Shanghai, a boutique pizza chain that positions itself as purveyor of 'adventurous' pizzas hired you to offer advice on developing new pizzas for the company. You decided to run a conjoint study. The table below shows the "utilities" (part-worths) of the key pizza attributes for the firm's target segment in Shanghai based on the conjoint study. Crust Pan Utility 0 Amount of Cheese Utility 2 oz 0 Thin -5 4 oz 8 Thick 15 6 oz 15 Topping Utility Price Utility Cheese Utility Durian 0 9.88 0 Yak 0 Tofu -5 8.88 20 Edam 3 Duck 25 7.88 40 Feta 10 Abalone 30 Q2a) If we change the crust from 'pan' to 'thin' how much more/less would a customer from this segment be willing to pay? How about if we change the crust from 'pan' to 'thick'? (5 points) Q2b) Suppose Pizza Shanghai is thinking of launching a new pizza in Shanghai. The two alternative pizza designs are: Skinny Thai Aroma Special Thin 4 oz. Durian 7.88 Edam Fat Bird-Lover's Delight Thick 6 oz. Duck 9.88 Yak Of the two designs, which one seems to be preferable based on the conjoint results? (show numbers). (5 points) Q2c) Suppose you went ahead with the 'optimal' pizza based on a conjoint study forecasting a 40% market share. Unfortunately, after the launch the actual market share for the new pizza was merely 20% - half of what the conjoint predicted. Your boss, Ms. Paula Izza, is not too happy and seriously considers firing you. What may you have overlooked (5 points)?