econ project -- 48 hrs（-）
vzan0903
MarketingResearchProjectResults.pptxMarketing Research Project: Results
Hypothesis:
Customers are willing to pay a price premium in order to purchase products that share the same brand name.
Experiment (Endowment Questions)
Four Endowment Questions:
Consider the following promotion:
Buy one package of frosting, get Duncan Hines Cake Mix free. Taking note of the prices charged for each item, please circle the frosting that you would buy:
Duncan Hines Frosting
$1.69
Betty Crocker Frosting
$1.69
Results (Endowment Questions)
Proportion of matches is 0.71 (N=225)
| Type | Percent |
| Matcher | 42% |
| Anti-matcher | 2% |
| BC loyal | 21% |
| DH loyal | 6% |
| Other | 29% |
Experiment (Valuation Questions)
Eight Valuation Questions:
Please circle the number which corresponds to the value that you ascribe to each of the following items:
Duncan Hines Cake Mix 1 2 3 4 5 6 7 8 9
Betty Crocker Cake Mix 1 2 3 4 5 6 7 8 9
Duncan Hines Frosting 1 2 3 4 5 6 7 8 9
Betty Crocker Frosting 1 2 3 4 5 6 7 8 9
Experiment (Valuation Questions)
Eight Valuation Questions (cont.):
Duncan Hines Cake Mix 1 2 3 4 5 6 7 8 9
& Duncan Hines Frosting
Duncan Hines Cake Mix 1 2 3 4 5 6 7 8 9
& Betty Crocker Frosting
Etc. (total of four combinations)
Results (Valuation Questions)
OLS: regress the valuation of each bundle on the valuations of separate components
The coefficient of “Same Brand” is 0.59. The mean bundle valuation is 5.53.
Experiment (Discrete Choice Questions)
Eight Discrete Choice Questions:
Four products: BC Mix, BC Frosting, DH Mix, DH Frosting;
Two prices: one regular and one sale price for each product
Total of 16 combinations (full factorial design);
Each subject responds to 8 possible scenarios
Experiment (Discrete Choice Questions)
Discrete Choice Questions:
In each of the following rows, take note of the prices charged for each item. Sale prices are listed in bold. Please circle the frosting and the cake mix which you would buy in each scenario.
Duncan Hines Frosting
$2.59
Betty Crocker Frosting
$2.69
Duncan Hines Cake Mix
$2.39
Betty Crocker Cake Mix
$2.29
etc. for a total of 16 combinations (8 for each subject)
Results (Discrete Choice Questions)
Multinomial Logit:
Regress the bundle choice data on the price of each bundle and bundle-specific dummies, BCCake, BCFrost, and Same Brand.
Results (Discrete Choice Questions)
Multinomial Logit:
| Variable | Coefficient | S.E. |
| Price | -14.04 | 1.21 |
| BCCake | 0.66 | 0.12 |
| BCFrost | -0.11 | 0.12 |
| Same Brand | 1.14 | 0.11 |
Conclusion:
The original hypothesis is supported by the data: Customers are willing to pay a price premium in order to purchase products that share the same brand name.
