P&G is doing a discrete choice analysis to determine what price to charge for a box of Tide. It collected the data shown in Figure 18-12. For example, when people were asked which they prefer: Generic for $5, Tide for $8, or None, 35 people said generic, 22 picked Tide, and 43 chose None.

Using a discrete choice model with the same price weight for each product, answer the following questions:

a. Using the value-based approach to pricing outlined in Chapter 16, "Conjoint Analysis," what price premium can Tide command over the generic product?

b. If the generic product sold for $5, what price would you recommend for Tide?