Bold Shopper Inc. is considering introducing a skin cream to the market and would like to know which type of cream is most preferred by the consumers.

A conjoint analysis is done for the purpose and the results are as shown below in Table - 1 for 40 consumers (assume they are a representative sample).

The different types of skin creams are as follows:

Cream types: Synthetic, Aloe Vera, Organic

Manufactured: American, European, Canadian

Sizes: 5 oz, 10 oz, 12 oz.

Prices: $10, $12, $15.

Profiles are developed for conjoint analysis and utilities for each attribute are given in the table below.

The baseline profile is: Synthetic cream, Canadian, 12 oz, $10.

The utilities for this profile are set at zero.

Q1. Which skin cream is most preferred by the consumers? Justify your calculations.

Q2. Are their any meaningful segments in the market? If yes, describe them.

Q3. What types of creams should be introduced for each of these segments? Justify.

Q4. Develop a sales forecast for the Bold Shopper Inc:

• For the most preferred cream overall.
• For each of the creams targeted at each of the segments.

Q5. Assuming all other things to be constant and if utilities of following are:

$12 -0.49

$15 -0.98

Organic cream 1.33

Aloe Vera 0.94

How much should the price be reduced for the consumer to buy the Aloe Vera cream?

TABLE - 1:

Customers	Intercept	American	European	5 oz	10 oz	Organic	Aloe Vera	$12.00	$15.00
1	4.61	-0.67	0.52	-0.17	0.32	0.67	2.35	-0.32	-0.77
2	4.63	-0.54	0.6	-0.21	0.15	0.54	2.81	-0.26	-0.78
3	3.71	0.41	0.59	0.15	0.52	-0.13	-1.37	-0.4	-0.69
4	3.68	0.49	0.75	0.23	0.57	-0.22	-2.81	-0.54	-0.67
5	4.55	-0.62	0.66	-0.2	0.37	1.31	2.18	-0.25	-0.7
6	4.53	-0.79	0.62	-0.25	0.32	0.58	2.41	-0.31	-0.74
7	3.65	0.66	0.65	0.32	0.49	-0.1	-2.12	-0.57	-0.65
8	3.64	0.62	0.66	0.32	0.49	-0.88	-1.74	-0.43	-0.61
9	5	0.1	0.2	0.4	0.05	1.5	0.5	-0.5	-1
10	4.63	-0.76	0.61	-0.27	0.38	0.89	2.78	-0.19	-0.69
11	3.71	0.37	0.68	0.21	0.51	-0.61	-2.67	-0.56	-0.61
12	3.65	0.67	0.59	0.22	0.42	-0.29	-2.03	-0.58	-0.54
13	3.53	0.76	0.64	0.22	0.62	-0.6	-1.22	-0.44	-0.57
14	3.55	0.64	0.7	0.16	0.64	-0.64	-2.02	-0.52	-0.59
15	5.11	0.31	0.21	0.43	0.14	1.15	0.55	-0.53	-0.96
16	5.13	0.33	0.24	0.47	0.05	1.85	0.76	-0.48	-1.05
17	3.54	0.59	0.63	0.28	0.62	-0.36	-1.83	-0.54	-0.66
18	5.16	0.39	0.23	0.47	0.19	1.82	0.65	-0.53	-0.97
19	5.11	0.12	0.26	0.45	0.11	1.79	1.03	-0.42	-1.08
20	5.06	-0.08	0.26	0.4	0.2	1.57	0.67	-0.54	-1.04
21	4.73	-0.34	0.63	-0.26	0.19	1.28	2.23	-0.16	-0.73
22	3.69	0.5	0.73	0.15	0.59	-1.55	-2.24	-0.57	-0.56
23	5.1	-0.07	0.35	0.35	-0.01	1.61	1.1	-0.5	-0.95
24	5	-0.01	0.24	0.32	-0.04	1.71	1.1	-0.54	-1.02
25	5.18	-0.06	0.29	0.4	0.19	1.35	0.8	-0.52	-1.05
26	5.11	0.1	0.28	0.45	0.16	1.33	0.94	-0.49	-0.98
27	4.71	-0.65	0.57	-0.21	0.15	1.26	2.26	-0.26	-0.71
28	4.52	-0.54	0.49	-0.17	0.23	0.88	2.27	-0.19	-0.69
29	4.65	-0.55	0.64	-0.19	0.31	1.06	2.27	-0.24	-0.84
30	5.02	0.28	0.21	0.31	0.19	1.48	0.92	-0.58	-1.06
31	5.17	0.32	0.25	0.37	0.12	1.02	0.82	-0.57	-1.07
32	4.72	-0.67	0.5	-0.17	0.22	0.79	2.18	-0.32	-0.79
33	0.74	0.69	0.71	0.17	0.56	-0.29	-1.68	-0.54	-0.61
34	5.08	0.19	0.21	0.36	0.13	1.31	0.54	-0.55	-1.07
35	3.68	0.5	0.63	0.27	0.47	-0.98	-2.39	-0.54	-0.61
36	3.53	0.5	0.62	0.29	0.43	-0.72	-1.01	-0.57	-0.61
37	3.68	0.62	0.6	0.28	0.55	-0.27	-1.11	-0.52	-0.68
38	5.09	-0.02	0.23	0.35	0.18	1.64	0.81	-0.56	-1.07
39	5.07	0	0.29	0.45	-0.01	1.79	1.32	-0.48	-0.97
40	3.5	0.5	0.6	0.25	0.5	-0.5	-1	-0.5	-0.6