Question
A coffee company is considering four different attributes for their new coffee product: roast type, origin, packaging type, and price. They conducted a conjoint analysis
A coffee company is considering four different attributes for their new coffee product: roast type, origin, packaging type, and price. They conducted a conjoint analysis study with 100 coffee drinkers, and obtained the following results:
- Roast type: Light (1), Medium (2), Dark (3)
- Origin: Colombia (1), Ethiopia (2), Brazil (3)
- Packaging type: Bag (1), Can (2), Box (3)
- Price: $10 (1), $12 (2), $14 (3), $16 (4)
The part-worth utilities for each level of each attribute are shown in the following table:
Attribute | Level 1 | Level 2 | Level 3 | Level 4 |
---|---|---|---|---|
Roast type | 1 | 2 | 3 | |
Origin | 1 | 2 | 3 | |
Packaging type | 1 | 2 | 3 | |
Price | 1 | 2 | 3 | 4 |
a) Calculate the part-worth utilities for each level of each attribute.
b) Calculate the importance weights for each attribute.
c) Calculate the utility score for each coffee product, assuming the following attribute levels: Medium roast, Brazil origin, bag packaging, and $12 price.
d) Which attribute is the most important for consumers in determining their preference for the coffee product? Which attribute level is the most preferred by consumers? Provide a rationale for your answers.
Assume that the range of possible part-worth utilities is from -3 to +3, and that the importance weights are calculated based on the range of the part-worth utilities for each attribute.
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