Best Motor Works (BMW) competes in the luxury car market.

Your Market Research Team has conducted a study on 1,500 respondents using choice-based conjoint analysis for three attributes, each attribute having two levels

Attribute b1 (Brand) Attribute b2 (Number of Doors) Attribute b3 (Price)

Buzzy Beaut

2 door sports convertible 4 door family sedan

$55,000 $90,000

The alternatives in the questionnaire are presented in Table 1:

Table 1: Alternatives in the Conjoint Analysis for BMW

Alternatives Brand Doors Price ($000s)

b0 b1 b2 b3

1 0 Buzzy 2 door $55

2* 0. Buzzy 2 door $90

3 0 Buzzy 4 door $55

4* 0. Buzzy. 4 door. $90

5. 0. Beaut. 2 door. $55

6*. 0. Beaut. 2 door $90

7 0 Beaut. 4 door $55

8*. 0. Beaut. 4 door $90

TASK - Based on the re-estimated market shares above and your overall marketing knowledge, provide informed recommendations about potential consumer trade-off based on attributes of the recommended new alternative. In other words, should BMW: (a) keep the current four alternatives and not introduce the new alternative (b) introduce the new alternative to replace one of the existing alternatives (c) introduce the new alternative in addition to the current four alternatives