Conjoint Analysis

Analyzing Survey Data
You mail 3 different surveys to 3 segments of customers.

ingredient A:
These customers ar offered a price of $60. Among the snow customers surveyed, 20 indicated they would cloud at this price and the remainder verbalize they would not. In the population, you predict that there are 10,000 customers in this segment.

Segment B:
These customers are offered a price of $50. Among the 150 customers surveyed, 48 indicated they would buy at this price and the remainder said they would not. In the population, you estimate that there are 6,000 customers in this segment.

Segment C:
These customers are offered a price of $40. Among the 80 customers surveyed, 40 indicated they would buy at this price and the remainder said they would not. In the population, you estimate that there are 9,000 customers in this segment.

The overall market you are targeting contains 25,000 people and you can only charge the group 1 price. The marginal cost of the product you are selling is $35.

Questions
1.Your mark is to determine whether the optimal price is $40, $50, or $60. Do you foreshadow any problems with the survey methodology? If you could re-design the method what would you do other than?




Answer: People are not good at answering direct questions because their WTP depends on:
-Price of other ersatz goods
-Where they are buying this good from
-How soon they need a good etc


If I were to re-design the survey, I would create a proportion table like the following:

SurveyMy Good (G1) comparable to(predicate) Good (G2)% Buyers-G1% Buyers-G2
#1$60$60
#2$60$40
#3$50$50
#4$50$50
#5$40$40
#6$40$30



2.Determine the optimal price (either $40, $50, $60) and state the unavoidable assumptions to support your position.

Answer: Assuming that when the all the segments who a certain(prenominal) WTP buy the good when the list price of good is peer or below their WTP price. Also, assuming that the high WTP segment does not...If you necessitate to get a full essay, order it on our website: Orderessay



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