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A marketing researcher is analyzing consumers preferences for smart watches. He designs a conjoint analysis to collect data. The following relationship is found from his
A marketing researcher is analyzing consumers preferences for smart watches. He designs a conjoint analysis to collect data. The following relationship is found from his analysis:
Utility=5+10*Compatibility+20*ScreenSize+15*BatteryLife+35*Price,
where Utility is measured on a 100-point scale (100=most preferred),
Compatibility=1 if compatible with Android and iOS,
=0 if only compatible with iOS
ScreenSize =1 when screen size is 44mm,
=0 when screen size is 40mm
BatteryLife =1 when battery life is 4 days,
=0 when battery life is 2 days
Price =1 when price is $180, =0 when price is $250
Which of the following statements is true?
a. Compared with an upgrade on battery life (from 2 days to 4 days), consumers are more willing to pay for an upgrade on screen size (from 40 mm to 44 mm)
b. Consumers will get zero utility from the product if all the attributes are at the least preferred level
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