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Brian Cuspid, who works for a leading toothpaste manufacturer, wishes to better understand target customers in a particular geographic region. His manager suggested trying conjoint
Brian Cuspid, who works for a leading toothpaste manufacturer, wishes to better understand target customers in a particular geographic region. His manager suggested trying conjoint analysis. She told him that not only would he gain insight into the trade-offs among various attributes in the target demographic, but also that conjoint could help estimate how much customers would be willing to pay for different configurations. Excited by this possibility, he contacted Ron Paul Analytics, who ran the following study for him. Attribute Level Utility Attribute Level Utility Price $1.99 1.64 Brand Allsmile 1.21 $2.99 0.75 B&B Healthcare 0.56 $3.99 -0.84 Caremore -0.32 $4.99 -1.92 Dentacare -0.87 Delivery Tube -0.54 Texture Paste 0.41 Pump 0.54 Gel -0.41 Size Small -0.81 Medium -0.02 Large 0.92 How much are consumers willing to pay for an otherwise similar toothpaste branded as Allsmile as compared to a Caremore brand? [Note: again use the high and low price in your calculation] Brian Cuspid, who works for a leading toothpaste manufacturer, wishes to better understand target customers in a particular geographic region. His manager suggested trying conjoint analysis. She told him that not only would he gain insight into the trade-offs among various attributes in the target demographic, but also that conjoint could help estimate how much customers would be willing to pay for different configurations. Excited by this possibility, he contacted Ron Paul Analytics, who ran the following study for him. Attribute Level Utility Attribute Level Utility Price $1.99 1.64 Brand Allsmile 1.21 $2.99 0.75 B&B Healthcare 0.56 $3.99 -0.84 Caremore -0.32 $4.99 -1.92 Dentacare -0.87 Delivery Tube -0.54 Texture Paste 0.41 Pump 0.54 Gel -0.41 Size Small -0.81 Medium -0.02 Large 0.92 How much are consumers willing to pay for an otherwise similar toothpaste branded as Allsmile as compared to a Caremore brand? [Note: again use the high and low price in your calculation]
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