Suppose you are the market analyst of a beer company
Question 3
Suppose you are the market analyst of a beer company. Your research team has already conducted a Choice-Based-Conjoint study for three attributes, each has two levels
Country of origin: Local and imported
Brand age: Younger and older
Price: $5 and $10
Your team needs you to do some analysis (data for question 3). Undertake a conjoint analysis, completing all the tasks below.
Calculate the partworths for an imported beer, an older brand and for a $5 increase in price. Convert the partworths to dollar values for an imported beer and an older brand. Interpret the results. Calculate the choice probabilities for all eight alternatives. Comment on the limitations of this method to estimate market shares.
In the current market, only five alternatives, 2, 4, 6, 7 and 8, are available. Re-estimate the market shares for these five alternatives. Your company is considering adding in to this market with one of the remaining alternatives (alternative 1, 3, or 5). Determine which alternative is the best for your company to add to the market by calculating the new market shares after the addition of each new alternative. Comment on the consumer tradeoff among imported beer, older brand, and low price. Comment on the impact of the new alternative on the existing market shares.
Present your answers as concisely as possible in the form of a Mini-Report (i.e. no need for an executive summary, introduction or conclusion, etc).
Hint
Management "Conjoint analysis is a survey-based statistical technique which helps to determine how people value different attributes, used in market research, that make up an individual product or service. It is basically the optimal market research approach for measuring the value that consumers place on features of a product or service. And, this commonly used approach combines real-life sc...
"Conjoint analysis is a survey-based statistical technique which helps to determine how people value different attributes, used in market research, that make up an individual product or service. It is basically the optimal market research approach for measuring the value that consumers place on features of a product or service. And, this commonly used approach combines real-life scenarios and statistical techniques with the modeling of actual market decisions.
The main objective of this analysis is to determine what combination of a limited number of attributes is most influential on respondent choice or the decision making. Also, a controlled set of potential products or services is shown to survey respondents and by analyzing how they make preferences between these products, the implicit valuation(can be used to create market models that estimate market share, revenue and even profitability of new designs) of the individual elements making up the product or service can be determined."
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