Question
. 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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