Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do we read these tables .Can you explain the economics concepts and explain how did we get this answer 9) The home electronic store

How do we read these tables .Can you explain the economics concepts and explain how did we get this answer

image text in transcribed
9) The home electronic store conducts a similar conjoint analysis in another country, where customer preferences are different. In this country, customers fall into one of two well-defined and equal-sized segments, with average part-worths as shown below in the table. Again, customers will be deciding between the store's TV (either the "quality offering" or the "size offering") and a competing store's product. Which TV should the store introduce in order to maximize revenues? AVERAGE PART WORTH QUALITY OFFERING SEGMENT A SEGMENT B SIZE 40" 0 0 QUALITY 1080p 9 CO PRICE $2,000 11 3 TOTAL UTILITY 20 11 AVERAGE PART WORTH SIZE OFFERING SEGMENT A SEGMENT B SIZE 50 QUALITY 720p 2 3 PRICE $2,000 11 3 TOTAL UTILITY 22 14 AVERAGE PART WORTH COMPETING PRODUCT SEGMENT A SEGMENT B SIZE 50" 8 QUALITY 1080p 9 8 PRICE $3,000 1 TOTAL UTILITY 19 17 The quality offering. Neither customer segment prefers the quality offering, and neither segment will change its behavior based on which TV is offered anyway. The size offering. Although both customer segments prefer the size offering, neither will change their decision based on which TV is offered. Revenues will be the same no matter which TV is introduced. correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics An Intuitive Approach with Calculus

Authors: Thomas Nechyba

1st edition

538453257, 978-0538453257

More Books

Students also viewed these Economics questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago