Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

AttributeLevel 1Level 2Level 3Level 4
Roast type123
Origin
123
Packaging type1
23
Price1234

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.

Step by Step Solution

3.36 Ratings (110 Votes)

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below a To calculate the partworth utilities for each level of each attribute we can compare th... blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Engineering Economy

Authors: Leland T. Blank, Anthony Tarquin

8th edition

73523439, 73523437, 978-0073523439

More Books

Students also viewed these Economics questions