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Burnside Marketing Wheat/Corn Sweetner Flavor Bits Child Low High Sugar Honey Artificial Present Absent 1 15 35 30 40 25 15 9 2 30 20

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Burnside Marketing
Wheat/Corn Sweetner Flavor Bits
Child Low High Sugar Honey Artificial Present Absent
1 15 35 30 40 25 15 9
2 30 20 40 35 35 8 11
3 40 25 20 40 10 7 14
4 35 30 25 20 30 15 18
5 25 40 40 20 35 18 14
6 20 25 20 35 30 9 16
7 30 15 25 40 40 20 11
Burnside Marketing Research conducted a study for Barker Foods on several formulations for a new dry cereal. Three attributes were found to be most influential in determining which cereal had the best taste: ratio of wheat to corn in the cereal flake, type of sweetener (sugar, honey, or artificial), and the presence or absence of flavor bits. Seven children participated in taste tests and provided the following part-worths for the attributes (see Section 13.4 for a discussion of part-worths). (a) Suppose that the overall utility (sum of part-worths) of the current favorite cereal is 77 for each child. What product design will maximize the number of children in the sample who prefer the new dry cereal? Note that a child will prefer the new dry cereal only if its overall utility is at least 1 part-worth larger than the utility of their current preferred cereal. Choose the attributes of the optimal product design. (Select all that apply.) low wheat/corn ratio high wheat/corn ratio sugar sweetener honey sweetener artificial sweetener flavor bits present flavor bits absent (b) Assume that the overall utility of the current favorite cereal for children 1 to 4 is 72 , and the overall utility of the current favorite cereal for children 5 to 7 is 82. What product design will maximize the number of children in the sample who prefer the new dry cereal? Note that a child will prefer the new dry cereal only if its overall utility is at least 1 part-worth larger than the utility of their current preferred cereal. Choose the attributes of the optimal product design. (Select all that apply.) low wheat/corn ratio high wheat/corn ratio sugar sweetener honey sweetener artificial sweetener flavor bits present flavor bits absent

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