MKT Tool 3

2

MKT 315

Ce Liang

Dr.M.GailVermillion

5/35/2020

Assumptions in conjoint analysis

There are various assumptions in a conjoint analysis. The first assumption is that any product or service is a bundle of attributes. This means that depending on the product in question, it will be defined by several attributes, including its name, outlook, reliability among many other attributes (Rao, 2014). A product is also defined by other attributes such as aesthetics, physical and psychological. Delete the yellow. all you need to say is “products are a bundle of attributes”

The other assumption is that products variance is based on the attribute levels. This means that products with highly regarded attributes will have higher prices and vice versa. This depends on the value that consumers attach to the product. This assumption has nothing to do with price. All it says is “If an attribute level changes the product Changes” That is all you needed to say. Since it appears that you do not understand I am going to give you an example, This is just so you can learn – do not include this in your REDO tool summary 3. Example: If a pair of glasses are made from the attributes Color, Brand and Material. If the glasses change from being black glasses to white glasses the product changes. Do you understand? Reply in the email you send me.

The last assumption is that the preferences of consumers for the bundles of attributes differ. This means that the value attributed to a certain feature by one consumer may differ with the next consumer. Therefore, this can only be established by finding out the utility levels for each attribute. Delete the yellow

Steps in a conjoint analysis

To perform a conjoint analysis, several key steps have to be followed. These are explained below; I do not want you to give examples I want you to tell me the steps. This is where you should be writing the things I say over and over in the video. I try to say it in one to two sentences sometimes less. I want you to watch the video again and put it on slow motion or stop it. It there is ANYTHING you do not understand I want you to pause the tape and write down your question. You can text it to me or email me.

The first step is the selection of attributes and levels that a product is composed of. The focus groups, and what else is used? in this case, may include all people. These may range from aesthetic, performance, physical and psychological aspects (Rao, 2014). For instance, a house may be defined by aspects such as space, location, purpose and type. This means that we can have a three bedroomed house, located in town, suitable for young families and is a bungalow. This description will be different for different houses. The levels should also be kept as specific as possible to avoid any contradictions. Delete yellow

The second step is the selection of stimulus representation. This begs the question of the choices of the seller regarding the profile to be exhibited to consumers. This requires one to come up with actual products, make use of texts, pictures, prototypes and use of pictures and texts. Delete yellow I said several times what we would be using and gave the reason. Write what I said in the video here.

The third step involves designing the experiment. This involves establishing how many possible profiles can be found and whether the profilers should rate or rank each of the profiles. Delete yellow This requires the use of orthogonal experimental design.

The fourth step involves the regression analysis. This is followed by an interpretation of the conjoint output. The interpretation is made by use of a bar chat (Rao, 2014). Once this is done, it can enable one to understand the customer value structure better. It also enables the producer to use utility to find the best product. Besides, it is also possible to find the total attribute importance and an estimation of the relative market share. Delete yellow. Tell me what the three things we look at are on the Regression output and what they mean. One sentence for each. I will give you the first one Adjusted R2 should be at .3 or more and shows how much data we captured. Now you do Sig F and Coefficients.

I am a little concerned that you do not care if you pass this class because you did not even bother to email and ask for help or try to do what you know is 60% of the assignment. Even after I know you said you had been in contact with your group. You are encouraged to share data with your group. So do what you can then send your work by email to group and say “hey guys this is what I have done so far can you help or send me in right direction”

This is the last time I will allow a REDO on anything in the class. SO PLEASE ask for my help.

References

Rao, V. R. (2014). Applied conjoint analysis (p. 389). New York: Springer. Do not use references it makes you try to write more and leads you off track