Hi,

this is one of the Qs that I don't know any technique to answer it ... I will have similar Q in a coming exam and I have only one min to answer it ... can you please help me to find easy logical steps of how to answer such Q

A sporting goods store is trying to decide what type of backpack to introduce into its product line. After performing a conjoint analysis, the store finds that customers generally fall into one of four well-defined customer segments, with average part-worths as shown in the tables below. 20% of customers are in Segment A, 20% are in Segment B, 50% are in Segment C and 10% are in Segment D. These customers, 100 in total, will be deciding between the store's two brands of backpack (either the "gym offering" or the "hiking offering") and a competing store's "school offering" bag. Gym Offering Segment A Segment B Segment C Segment D Size Small 10 4 6 2 # of pockets 2 4 6 8 3 Food Pouch? No 5 6 4 1 Price $29.99 21 13 14 11 Total Utility 40 29 32 17 Hiking Offering Segment A Segment B Segment C Segment D Size Large 2 10 4 15 # of pockets 6 7 8 11 10 Food Pouch? Yes 8 11 5 14 Price $69.99 2 4 6 9 Total Utility 19 33 26 48 School Offering Segment A Segment B Segment C Segment D Size Medium 6 7 5 9 # of pockets 4 5 7 10 8 Food Pouch? Yes 8 11 5 14 Price $49.99 10 6 12 10 Total Utility 29 31 32 41 Which backpack should the store introduce in order to maximize revenues? O The gym offering If the store introduces the gym offering, it will capture Segment A, but customers in Segment C will be indifferent between its offering and the competitor's school offering. Assuming the store captures half of Segment C (25% of all consumers), it would capture 45% of all consumers (45 out of 100) paying roughly $30 each, for revenues of about $1,350.00. Even if all of Segment C happened to choose the gym offering, it would still earn slightly more revenue by offering the hiking backpack. O The hiking offering If the store introduces the hiking offering, it will capture Segments B and D, 30% of all consumers (30 out of 100) paying roughly $70 each, for revenues of about $2, 100.00. This would yield the most revenue for the store. O Introducing either offering will yield the same revenues If the competitor's product was not on the market, the store would earn approximately the same amount of revenue by offering either of its backpacks. However, because the average consumer in Segment C receives the same utility from purchasing the competitor's school offering as they do the gym offering, it's safe to assume that the competitor will attract about half of Segment C. Thus, the store would earn greater revenues by offering its hiking backpack. Neither product will earn revenue because the competitor's offering is preferred by all. The competitor's product is fully preferred by none of the four segments