Penna Bank conducted a survey of customers and obtained preference rankings for various hypothetical bank profiles constructed by using the following characteristics and levels within each characteristic:

Characteristic 1: Operating Hours:

Level A. 9 a.m. to 5 p.m. weekdays

Level B. 9 a.m. to 5 p.m. weekdays plus 9 a.m. to 12 noon Saturdays

Characteristic 2: Online Banking:

Level Y. Yes Level N. No.

Characteristic 3: Monthly Service Charge:

Level R. None Level S. $20

Some of the part-worth utilities from the conjoint analysis are reported below.

Operating Hours: A = 0.2; B = ?

Online Banking: Y = 0.6; N = ?

Monthly Service Charge: R = 1.0; S = 0.0.

1. Suppose the relative importance of each characteristic is as follows:

• Operating hours: 20%
• Online Banking: 30%
• Monthly Service Charge: 50%

What are the part-worth utilities of Level B (under Operating hours) and Level N (under Online Banking)? (Needless to say, longer operating hours and the presence of online banking are the preferred levels within the respective characteristics.)

b. Suppose the bank does not offer online banking currently. What would be the customers dollar value per month of having an Online Banking facility? Show work.