Reference :
https://drive.google.com/drive/folders/1uyG49PKHl1rGcQ_-Je9bDKbKc9c659Mr?usp=sharing
Case: Spot Remover Design 1. Code all five attributes (including price) using dummy variables (1 pt). Outline the coding plan (0.5 pt). A respondent was presented 18 hypothetical alternatives (profiles) described on five attributes of a new Type in the ranks and the dummy variables for each of the 18 profiles into a spreadsheet (1 pt). spot remover. The attributes are: Convert the rank order so that the higher the number the more preferred the object. In the i) package design (described on three levels); table above, the most preferred object is ranked 1 (0.5 pt) (Hint: Subtract each rank given in the ii) brand name (described on three levels); ast column from 19 to get the converted ranks.) ili) price (described on three levels); iv) Good Housekeeping seal of approval (described on two levels); 2. Compute the correlation matrix of the dummy variables. (0.5 pt) What do you notice in the v) money back guarantee (described on two levels). correlation matrix? (0.5 pt) What does this say about the particular set of 18 profiles that was presented to the respondent? (0.5 pt) Based on the attributes, 108 possible profiles could be created. This is given by 3x3x3x2x2=108. The respondent was given a particular set of 18 and was asked to rank the profiles from most preferred 3. Run a regression using the rank as the dependent variable and the dummy variables as the (rank of 1) to least preferred (rank of 18). The data are given in the table below. The first five columns predictors. (Disregard your suspicion that the dependent variable is ordinal scaled and I said in represent the five attributes and the last column is the respondent's ranking. class that the dependent variable for regressions must be interval scaled!) The regression coefficients of the dummy variables can be treated as utilities. (1 pt) Respondent's Package Brand Price Housekeeping Money Back evaluation 4. Calculate the predicted utilities for the following options: (1.5 pt, 0.5 pt each) Design Name Seal? Guarantee (rank) ) Package A, K2R, $1.19, no Good Housekeeping seal, no money back guarantee K2R 1.19 No No 13 i) Package C, Bissell, $1.19, no Good Housekeeping seal with money back guarantee 2 . A Glory 1.39 No Yes 11 3. 17 ii) Package B, Bissell, $1.59, Good Housekeeping seal with money back guarantee. Bissell 1.59 Yes No 4. K2R 1.39 Yes Yes 2 Which option will the consumer choose based on a first-choice rule? (0.5 pt) Calculate the 5 . Glory 1.59 No No 14 choice probabilities for each of the options using the share-of-preference rule. (0.5 pt) 6. Bissell 1.19 No No 7. K2R 1.59 No Yes 12 5. What is the highest predicted utility that can be obtained? (0.5 pt) What are the characteristics 8. C Glory 1.19 Yes No of that "ideal" option? (0.5 pt) 9. Bissell 1.39 No No 10. A K2R 1.59 Yes No 18 What would be your reservations to use the choice probabilities obtained above, aggregated 11. Glory 1.19 No Yes across all respondents, to predict the market share of each option? (1 pt) 12 . Bissell 1.39 No No 13. K2R 1.19 No No 14 . n n w w W D D I Glory 1.39 Yes No 15 . Bissell 1.59 No Yes 16 . K2R 1.39 No No 17. Glory 1.59 No No 18 . Bissell 1.19 Yes Yes
