Question
Annie's Arborist Service is considering expanding her business to sell apple trees. She has one competitor in town, Sam's Shrubs. Annie is interested in estimating
Annie's Arborist Service is considering expanding her business to sell apple trees. She has one competitor in town, Sam's Shrubs. Annie is interested in estimating her potential market share, sales and profits for apple trees at various prices. Sam's currently sells only Golden Delicious apple trees and Annie is planning on selling Gala. She had recently read about using conjoint analysis, so she contacted RonPaul Analytics, who ran the following study for her.
1. What is the utility of the most preferred combination of attributes?
2. What attribute do consumers most value?
3. What is the approximate value of a utility of 1.00 based on the given price ranges?
4. What is the approximate value of Annie's brand/store compared to Sam's for an otherwise equal apple tree?
5. What is the estimate for market share for Annie if she sells Gal Apple Trees at $15.95 vs. Sam selling golden Delicious trees at $24.95.?
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