Conjoint Analysis

1234 words, 5 pages

Intro Sample...

Analyzing Survey Data
You mail 3 different surveys to 3 segments of customers.

Segment A:
These customers are offered a price of $60. Among the 100 customers surveyed, 20 indicated they would buy at this price and the remainder said they would not. In the population, you estimate that there are 10,000 customers in this segment.

Segment B:
These customers are offered a price of $50. Among the 150 customers surveyed, 48 indicated they would buy at this price and the remainder said they would not. In the population, you estimate that there are 6,000 customers in this segment.

Segment C:
These customers are offered a price of $40. Among the 80 customers surveyed, 40 indicated they would buy at... View More »

Body Sample...

The actual size of the consumer population was unknown (i.e. assume there are “M” consumers in the actual market).

To determine market demand, 3 regressions were run, one for each segment. Respondents who were clustered in the same segment were placed in the same regression. For each segment, the regression is:

Ranking = 0 + 1*Price + 2*PPM6 + 3*PPM12 + 4*Color + 5*Epson + 6*Canon

In the original survey, the prices offered were 299, 399, and 499. In the regression, the Price variable is coded as 0, 100, 200 (i.e., 299 is subtracted). The other variables are coded as 0/1 dummy variables. Thus the “base” model has $299, 3 PPM, Black and White, and HP brand. Because the dummy variables and price are zero for the “base” model, the intercept picks up the average rating of the “base” model.

The output for the regressions is in the table below:

Segment A Segment B Segment C
0 Intercept 64.30 45.63 65
1 Price (0.19) (0.12) (0.11)
2 PPM: 6 11.31 13.31 17.83
3 PPM: 12 17.11 21.83 28.42
4 Color 7.14 37.80 15.30
5 Epson (13.41) (3.52) 4.84
6 Canon 5.58 (4.33) (13.20)

To help you interpret the Price coefficient, note that in Segment A a price increase of $100 results in an expected decrease of 19 rating points. Further, note that a coefficient of 11.31 for PPM:6 means that the expected rating increases by 11.31 points when a printer has this feature.

1. For each segment and each feature, convert the regression coefficients (Intercept, PPM, Color, Brand Name) into a dollar value.

Answer: ...

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