Preference ranking data were obtained from 20 respondents for three brands of dishwashers: X, Y, and Z.
Question:
Preference ranking data were obtained from 20 respondents for three brands of dishwashers: X, Y, and Z. Y and Z are existing brands selling for $225 and $175 respectively, while X is a proposed new brand. Table 1 provides the preference ranking data for 3 of the 20 respondents, (i.e., all 3 provided the identical preference ranking indicated in Table 1), Table 2 gives the data for 5 respondents, Table 3 for 4 respondents, and Tables 4 and 5 for 6 and 2 respondents respectively. A rank of 1 indicates the most- preferred product, while 15 indicates the least-preferred product.
a. Compute the proportion of first-place votes for brand X as a function of price when brands Y and Z are at their current prices. (First place is meant in a relative, not absolute sense.)
b. What proportion of first place votes will X receive if its price is $200 while brands Y and Z lower their prices to $200 and $150 respectively?
c. Which brand (Y or Z) suffers the greatest loss in first-place votes with the entry of brand X at $200?
d. Assume for part (c) that brands Y and Z are selling at their regular price, i.e., $225 and $175 respectively.
Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | |||||||||||
X | Y | Z | X | Y | Z | X | Y | Z | X | Y | Z | X | Y | Z | |
$150 $175 $200 $225 $250 | 2 4 7 10 13 | 1 3 6 9 12 | 5 8 11 14 15 | 4 5 8 11 13 | 1 2 3 7 10 | 6 9 12 14 15 | 4 6 9 12 15 | 2 5 8 11 14 | 1 3 7 10 13 | 1 2 5 8 11 | 3 4 7 12 14 | 6 9 10 13 15 | 2 5 9 10 15 | 1 6 8 11 13 | 3 4 7 12 14 |
Cost Accounting A Managerial Emphasis
ISBN: 978-0132109178
14th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav