Question
MARKET B In market B, the company collected preference ratings from 200 respondents on the various brands that they considered. The table below gives the
MARKET B
In market B, the company collected preference ratings from 200 respondents on the various brands that they considered. The table below gives the preference ratings for respondent #1 and #2.
Preference Rating | ||||||||||
Pre Use | After Use of Soft Shine | |||||||||
Respondent | Dove | Pears | Lux Supreme | Pure Nature | Dove | Pears | Lux Supreme | Pure Nature | Soft Shine | |
1 | 0.5 | 1 | 1.5 | 3 | 1 | 2 | 2 | 3 | 2 | |
2 | 1 | 3 | 4 | 2 | 3 | 4.5 | 3 | 3 | 1.5 |
Part C: If 50% the respondents were like respondent #1 and 50% respondents were like respondent #2, what would be the loss in share of PureNature after the launch of SoftShine in Market B?
Part D:If the overall category demand remains the same and the per-unit margins (profits) is identical for Pure Nature and Softshine, should the company launch Softshine in Market B? Explain.
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