Question
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
Please calculate the dollar value of each utility point, then answer the following question: How much a consumer is willing to pay for improving the compatibility from only compatible with iOS to compatible with botkh iOS and Android?
a. $15
b. $20
c. $30
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