The Chicago Garden Dog is served with a Vienna beef wiener on a poppy-seed roll with sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt. A New York Dirty Water Dog is served with a natural casing all beef frankfurter on a white bread roll with sauerkraut, mustard, onions, and tomato relish. A researcher wants to investigate the pricing of a Chicago Garden Dog and a New York Dirty water Dog. She collects the following rank order information regarding the perceived value of the different attributes of hot dogs, where 1 is most preferred and 8 is least preferred. Dog: Vienna Beef OR Natural Casing (all beef frankfurter with Natural Casing) Toppings: Garden (poppy-seed roll, sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt) OR Dirty Water (white bread roll, sauerkraut, mustard, onions, and tomato relish) Price: $2.50 OR $3.50 (Total 20 marks) a) Score the hot dog offering from 0 to 7 , with 0 being the lowest utility hot dog and 7 being the highest utility. ( 2 point) b) Calculate the part worth utility of each of the attributes at their different levels. (6 points) c) For each combination of hot dogs, toppings and prices, what is the utility measured in utils? (6 points) d) Calculate the dollar value per util. (1 points) e) What is the utility difference between Garden toppings and Dirty water? (1 point) f) What is the utility difference between Vienna Beef dogs and natural casing dogs in utils? (1 point) g) If a nearby established competitor offers a Chicago Garden Dog at $3.00, what would be an appropriate price for a natural casing hot dog with Garden toppings? ( 3 points) The Chicago Garden Dog is served with a Vienna beef wiener on a poppy-seed roll with sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt. A New York Dirty Water Dog is served with a natural casing all beef frankfurter on a white bread roll with sauerkraut, mustard, onions, and tomato relish. A researcher wants to investigate the pricing of a Chicago Garden Dog and a New York Dirty water Dog. She collects the following rank order information regarding the perceived value of the different attributes of hot dogs, where 1 is most preferred and 8 is least preferred. Dog: Vienna Beef OR Natural Casing (all beef frankfurter with Natural Casing) Toppings: Garden (poppy-seed roll, sweet pickle relish, mustard, onions, tomato wedges, cucumber slices, sport peppers, and celery salt) OR Dirty Water (white bread roll, sauerkraut, mustard, onions, and tomato relish) Price: $2.50 OR $3.50 (Total 20 marks) a) Score the hot dog offering from 0 to 7 , with 0 being the lowest utility hot dog and 7 being the highest utility. ( 2 point) b) Calculate the part worth utility of each of the attributes at their different levels. (6 points) c) For each combination of hot dogs, toppings and prices, what is the utility measured in utils? (6 points) d) Calculate the dollar value per util. (1 points) e) What is the utility difference between Garden toppings and Dirty water? (1 point) f) What is the utility difference between Vienna Beef dogs and natural casing dogs in utils? (1 point) g) If a nearby established competitor offers a Chicago Garden Dog at $3.00, what would be an appropriate price for a natural casing hot dog with Garden toppings? ( 3 points)
