Marketing

fopic: ENELYSING CONSUMER MARKETS 1. Suppose Kate wants to buy computer and she narrowed her choice set to four computers (A,B,C,D). Assume that she is interested in four attributes: memory capacity, graphics capability, size and weight, and price. Suppose Sarah assigned 40 percent of the importance to the computer's memory capacity, 30 percent to graphics capacity, 20 percent to size and weight, and 10 percent to price (see table below). Table Note: Each attribute is rated from 0 to 10, where 10 represents the highest level on that attribute. Price, however, is indexed in a reverse manner, with 10 representing the lowest price, because consumer prefers a low price to a high price. a) Based on the evaluations Kate gave to each computer on above mentioned four attributes and assigned importance rates, which computer will Kate favor according to the Lexicographic Heuristic? Explain Your answer. b) Based on the evaluations Kate gave to each computer on above mentioned four attributes and if also considering that the minimum acceptable cutoff level Kate sets for each attribute is 7, which computer will Kate favor according to the Conjunctive Heuristic? Explain Your answer. c) If assuming that Kate mistakenly believes that the computer she has chosen by using the Lexicographic Heuristic performs better on important for her attribute than it actually does, which strategy would be more appropriate for competitors to sell their computers if they are aware about Kate's uncertainty? You must opt ONE strategy between the following possible strategies: Real Repositioning, Psychological Repositioning, Competitive De- positioning