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. In a consumer survey for a new personal coffee machine design, three features are tested in a conjoint analysis: (1) availability of espresso brewing;

. In a consumer survey for a new personal coffee machine design, three features are tested in a conjoint analysis: (1) availability of espresso brewing; (2) capacity, (3) price. The average value system scores of the features (a ranking of 1 indicates the best choice, while 8 indicates the worst) are summarized in the following table (10 points)

Design

Feature 1

Feature 2

Feature 3

Ranking

A

With espresso brewing

12 oz. capacity

Price level above $70

7

B

W/o espresso brewing

6 oz. capacity

Price level lower than $30

5

C

With espresso brewing

12 oz. capacity

Price level lower than $30

1

D

W/o espresso brewing

6 oz. capacity

Price level above $70

6

E

With espresso brewing

6 oz. capacity

Price level above $70

3

F

W/o espresso brewing

12 oz. capacity

Price level lower than $30

4

G

With espresso brewing

6 oz. capacity

Price level lower than $30

2

H

W/o espresso brewing

12 oz. capacity

Price level above $70

8

Compare the consumers choice decisions across the difference levels of the three attributes of the coffee machine, and interpret the tradeoffs as perceived by the consumers? Support your answer with numerical calculations.

CALCULATIONS:

Features:

Categories

Average Rankings

Attribute difference between averages

Share of attribute difference within total difference

Espresso Brewing

With

Without

Capacity

6 oz.

12 oz.

Price

Low (Lower than $30)

High (Above $70)

TOTAL

Total Average:

Total Difference:

CONCLUSION:

A customer is willing to exchange ________________(least preferred attribute) for ____________________(most preferred attribute).

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