MAR4832 CONJOINT ANALYSIS QUESTIONS AND
VERIFIED ANSWERS
What are some approaches (i.e., other than conjoint analysis) that brand managers can
employ to design new products and services? - Answers - -utilities
-market simulations
-importance scores
What are utilities? - Answers - also know as part worths
numerical values that reflect the desirability of different features
What are important scores? - Answers - measure how much influence each attribute
has on someones choice
What are market simulations? - Answers - competitive market scenarios to predict
which products respondents would choose
What are some weaknesses in such approaches? - Answers - -all attributes that affect
buyer choices in the real world have been accounted for
-each product has equal availability
-respondents are aware of all products
-the products reach long range equilibrium
-equal effectiveness of sales force
-no out of stock conditions
-share of preference don't always match real world market shares
highest utility approach - Answers - assume that the person will select the offering with
the highest "total utility" for all customers to determine market share
linear proportion approach - Answers - all all the total utilities of all offerings to obtain
denominator
-total utility of that offering/ denominator x 100
relative importance - Answers - 1. calculate range for each attribute (highest)
2. add all ranges to get total range
focus groups - Answers - prepare a decision guide, run TWO focus groups, use info
from these to identify (important attributes-5 or more; and important levels for each
attribute (2-4 for each), characterize the competitors, use the above to create a design
matrix
what is a focus group discussion guide? - Answers - to have sub-topics and questions
within
VERIFIED ANSWERS
What are some approaches (i.e., other than conjoint analysis) that brand managers can
employ to design new products and services? - Answers - -utilities
-market simulations
-importance scores
What are utilities? - Answers - also know as part worths
numerical values that reflect the desirability of different features
What are important scores? - Answers - measure how much influence each attribute
has on someones choice
What are market simulations? - Answers - competitive market scenarios to predict
which products respondents would choose
What are some weaknesses in such approaches? - Answers - -all attributes that affect
buyer choices in the real world have been accounted for
-each product has equal availability
-respondents are aware of all products
-the products reach long range equilibrium
-equal effectiveness of sales force
-no out of stock conditions
-share of preference don't always match real world market shares
highest utility approach - Answers - assume that the person will select the offering with
the highest "total utility" for all customers to determine market share
linear proportion approach - Answers - all all the total utilities of all offerings to obtain
denominator
-total utility of that offering/ denominator x 100
relative importance - Answers - 1. calculate range for each attribute (highest)
2. add all ranges to get total range
focus groups - Answers - prepare a decision guide, run TWO focus groups, use info
from these to identify (important attributes-5 or more; and important levels for each
attribute (2-4 for each), characterize the competitors, use the above to create a design
matrix
what is a focus group discussion guide? - Answers - to have sub-topics and questions
within
