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Test 3 Conjoint Analysis Problem

1. A conjoint study was conducted to analyze consumer preferences for automotive vehicles. It analyzed how consumers valued different attributes like price, brand, horsepower, upholstery, and sunroof options. 2. The study found that consumers placed the highest value on leather upholstery and sunroofs, followed by higher horsepower and brands like Toyota. Price had a negative utility value as it increased. 3. The most important attribute for consumers was found to be upholstery, as leather interiors had the highest part-worth utility value. Price became less important as it increased above $25,000.

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216 views1 page

Test 3 Conjoint Analysis Problem

1. A conjoint study was conducted to analyze consumer preferences for automotive vehicles. It analyzed how consumers valued different attributes like price, brand, horsepower, upholstery, and sunroof options. 2. The study found that consumers placed the highest value on leather upholstery and sunroofs, followed by higher horsepower and brands like Toyota. Price had a negative utility value as it increased. 3. The most important attribute for consumers was found to be upholstery, as leather interiors had the highest part-worth utility value. Price became less important as it increased above $25,000.

Uploaded by

bala sanchit
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Test 3: Conjoint Analysis (11 points)

A conjoint study of automotive vehicles is conducted and the following results are
obtained:

Utility
Attribute Level (Part-
worth)
$23,000 3.79
Price $25,000 2.84
$27,000 0.13
$29,000 0
Toyota 2.02
Brand Volkswagen 1.92
Saturn 1.14
Kia 0
220 HP 0
Horsepower 250 HP 3.3
280 HP 3.42
Cloth 0
Upholstery
Leather 3.2
Yes 1.36
Sunroof
No 0

The part-worth values are the average values across all respondents in the study.

1. What is the utility of a Toyota with 280 HP, leather interior, no sunroof, and a
price of $23,000? (1 point)
2. What is the utility if the same car (in 1 above) is a Volkswagen? (1 point)
3. Which attribute is the most important for consumers? (2 points)
4. Consider the Toyota car in 1 above. How much money would an average
consumer be willing to give up (i.e. pay additional price) if a sunroof was added
to the vehicle? (4 points)
5. Suppose that we are interested in predicting the market share of a car with the
following profile: Saturn, $23,000, 220 HP, cloth interior, no sunroof. We believe
that when consumers consider our car they will also consider purchasing cars that
are currently on the market with the following profiles:
a. $27,000; Toyota; 250 HP; cloth interior; no sunroof
b. $29,000; Volkswagen; 280 HP; leather interior; no sunroof
c. $23,000; Kia; 220 HP; cloth interior; no sunroof
5.1 What is the forecast for the market share of the Saturn car that we are
interested in? (2 points) (NOTE: Please assume that the preference shares that you
obtain in the simulation using the average part-worth values are the market shares
of the respective attribute bundle).
5.2 What is the market share if we introduce a 280 HP engine instead of a 220 HP
engine? (1 Points) (Please make the same assumption as in 5.1 above).

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