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    Cases Conjoint Analysis

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    XYZ Paint Company wants to use conjoint analysis to determine how important different paint attributes (life, price, color) are to customers and the utility customers receive from different attribute level combinations. The document identifies these three attributes and their levels (life: 3-5 years, price: Rs 50-70 per liter, color: green, blue, cream). XYZ will use conjoint analysis results to understand customer preferences and determine the optimal product offering.

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    Cases Conjoint Analysis

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    akashbhatia36backup
    12 views5 pages
    XYZ Paint Company wants to use conjoint analysis to determine how important different paint attributes (life, price, color) are to customers and the utility customers receive from different attribute level combinations. The document identifies these three attributes and their levels (life: 3-5 years, price: Rs 50-70 per liter, color: green, blue, cream). XYZ will use conjoint analysis results to understand customer preferences and determine the optimal product offering.

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    XYZ Paint Company wants to use conjoint analysis to determine how important different paint attributes (life, price, color) are to customers and the utility customers receive from different attribute level combinations. The document identifies these three attributes and their levels (life: 3-5 years, price: Rs 50-70 per liter, color: green, blue, cream). XYZ will use conjoint analysis results to understand customer preferences and determine the optimal product offering.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views5 pages

    Cases Conjoint Analysis

    Uploaded by

    akashbhatia36backup
    XYZ Paint Company wants to use conjoint analysis to determine how important different paint attributes (life, price, color) are to customers and the utility customers receive from different attribute level combinations. The document identifies these three attributes and their levels (life: 3-5 years, price: Rs 50-70 per liter, color: green, blue, cream). XYZ will use conjoint analysis results to understand customer preferences and determine the optimal product offering.

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    © All Rights Reserved
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    You are on page 1of 5

    Conjoint Analysis: Case 1

    XYZ Paint Company identified the attributes which are important to their customers and also
    classified each of the attributes into their levels. Based on this, they want to use the technique of
    conjoint analysis to determine from a potential customers point of view, how important each
    attribute is to him. They also want to know how much utility the customers derive from a given
    combination of these levels of attributes. It also helps to understand the feasible offerings from
    the marketer’s point of view. The three important attributes identified for the paint are:

    1. Life: this is in one litre of paint.


    2. Price: the price of one litre of paint.
    3. Color: the color of paint.

    The levels of the above mentioned attributes are as follows:

     Life: 3 yrs, 4 yrs, 5 yrs


     Price: Rs 50 per litre, Rs 60 per litre, Rs 70 per litre
     Color: Green, Blue, Cream

    Price Ranking
    Life( in (Rs/Litre . Nng
    S.no yrs) ) Color (27 to1)
    1 5 50 green 27
    2 4 50 green 26
    3 5 50 cream 25
    4 5 50 blue 24
    5 5 60 green 23
    6 4 60 green 22
    7 5 70 green 21
    8 5 60 blue 20
    9 5 60 cream 19
    10 4 50 blue 18
    11 4 50 cream 17
    12 5 70 blue 16
    13 3 50 green 15
    14 5 70 cream 14
    15 3 50 blue 13
    16 4 60 blue 12
    17 4 60 cream 11
    18 3 50 cream 10
    19 4 70 green 9
    20 3 60 green 8
    21 4 70 blue 7
    22 3 60 blue 6
    23 4 70 cream 5
    24 3 60 cream 4
    25 3 70 green 3
    26 3 70 blue 2
    27 3 70 cream 1

    Var1 Var2 Var3 Var4 Var5 Var6 Var7


    -1 -1 1 0 1 0 27
    0 1 1 0 1 0 26
    -1 -1 1 0 -1 -1 25
    -1 -1 1 0 0 1 24
    1 -1 0 1 1 0 23
    0 1 0 1 1 0 22
    -1 -1 -1 -1 1 0 21
    -1 -1 0 1 0 1 20
    -1 -1 0 1 -1 -1 19
    0 1 1 0 0 1 18
    0 1 1 0 -1 -1 17
    -1 -1 -1 -1 0 1 16
    1 0 1 0 1 0 15
    -1 -1 -1 -1 -1 -1 14
    1 0 1 0 0 1 13
    0 1 0 1 0 1 12
    0 1 0 1 -1 -1 11
    1 0 1 0 -1 -1 10
    0 1 -1 -1 1 0 9
    1 0 0 1 1 0 8
    0 1 -1 -1 0 1 7
    1 0 0 1 0 1 6
    0 1 -1 -1 -1 -1 5
    1 0 0 1 -1 -1 4
    1 0 -1 -1 1 0 3
    1 0 -1 -1 0 1 2
    1 0 -1 -1 -1 -1 1
    Output and its interpretation:

    ANOVAb
    Sum of
    Model Squares df Mean Square F Sig.
    1 Regression 1443.369 6 240.562 24.720 .000a
    Residual 194.631 20 9.732
    Total 1638.000 26
    a. Predictors: (Constant), VAR00006, VAR00004, VAR00002, VAR00001,
    VAR00003, VAR00005
    b. Dependent Variable: VAR00007

    Coefficientsa
    Standardized
    Unstandardized Coefficients Coefficients
    Model B Std. Error Beta t Sig.
    1 (Constant) 14.463 .603 23.969 .000
    VAR00001 -6.252 .818 -.653 -7.642 .000
    VAR00002 -1.013 .801 -.106 -1.264 .221
    VAR00003 4.981 .851 .522 5.852 .000
    VAR00004 .815 .858 .085 .950 .353
    VAR00005 4.037 .858 .423 4.708 .000
    VAR00006 -1.352 .851 -.142 -1.588 .128
    a. Dependent Variable: VAR00007
    Utility Table:

    Attributes Levels Part utility Range of utility


    ( Max- Min)
    life 3 yrs -6.25 = 7.26- (-1.01)
    4 yrs -1.01 = 8.28
    5 yrs -6.25-1.01+X=0
    X=7.26
    Price Rs 50 per lt 4.981 =4.98 -(-5.7)
    Rs 60 per lt .815 = 10.68
    Rs 70 per lt X=-5.7
    Color Green 4.037 =4.03- (-1.35)
    Blue -1.352 = 5.38
    cream X=-2.68

    Interpretation:

    Most imp attribute: Price

    Second imp: Life, Third imp attribute: color

    Combination utilities:

    The total utility of any combination can be calculated by picking the attributes levels of our
    choice.

    For example, the combined utility of the combination 5 yrs of life, Rs 50 litres and Green
    color is 7.26 +4.9+4.037 = 16.27.

    Accordingly we can find the best combination.

    Best combination is 5 yrs of life, Rs 50 litres and Green color

    Next best is 5 yrs of life, Rs 60 litres and Green color . utility= 7.26+.815+4.037=12.117

    Individual attributes:
    Can find increase or drop in utility by comparing individual utilities of various levels.

    Increase in yrs from 4 to 5, utility has increased from -1.01 to 7.26

    Conjoint Analysis: Case 2


    The marketing manager of Reynolds wants to know how the customer values tangible and
    intangible features offered by its micro- tip pen. He identifies the attributes of his product which
    are important to customers, then the level for each attribute that the company is willing to design
    and offer to a customer. These are the following attributes of a micro tip pen, which are
    considered to be important.

    1. Price of the pen.


    2. The color of ink in refill
    3. Diameter of tip of the refill.

    The levels of these attributes are:

     Price: Rs 5, Rs 7, Rs 10, Rs 12
     Color of ink: blue, black, red
     Diameter of tip: .25 mm, .45 mm, .5 mm

    Since there are 4 ,3 n 3 levels of attributes, we get total of 4*3*3= 36 different combinations of
    attributes levels.

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