Bullspin

Conjoint Ex.2 (Due 3/23)

Honami Amano, Brandon Bell, Hunter Cockrel, Sydney Grosser, Christian Sargent, & Philip Sharkey

Compute the part-worth utilities and interpret utilities

[pic 1][pic 2]

>>A product with 275 yards in distance, 36 holes of life, and at the price of $6 will maximize the

utility of Public courses. Private courses, on the other hand, a product with 275 yards in distance, 27 holes of life, at the price of $7 will maximize their utility. Additionally, Public courses identified that a product that is either 225 yards in distance, 18 holes of life, or $8 would not meet their minimum threshold; therefore the product has no utility at all. Similarly, a product that is either 225 yards, 36 holes of life, or $6 does not produce any utility for Private courses.

Do Public and Private golfers value same things?

    >>No. While Public courses value price as the most important attribute and distance as the least,

Private courses value distance the most and the price the least. In addition, although Public courses identified the cheapest yet the most durable and farthest distance as their desirable product, the private courses seem to prefer the farthest distance with middle price and durability.

Do the utilities make sense?

    >>As for the Public courses, utilities do make sense; part worth utilities are the highest for

the best level of each attribute. For instance, farthest distance, most durable, and cheapest get the highest utilities. Private courses, on the other hand, utilities seem odd. While the cheaper gets higher utility between $8 and $7, the cheapest ($6) has 0 utility. We can assume that perhaps cheapness is equated to lower quality. Similar thing is happening to the life attribute. One would assume that more durable the product, the better it is. However, the highest level of this attribute (36 holes) gets 0 utilities, which is difficult to make sense.

Is the X100 optimal?

    >>No. Although X100 passes all thresholds, the total utilities (both Public and Private combined)

is less than Standard and Premium Brand. The total utilities of Standard brand is 75 (Public) + 20 (Private) = 95. Premium is 10 (Public) + 82 (Private) =92. X100, on the other hand, has only 74 total utilities (41 Public + 33 Private) as shown in the table below.

Which brand (Premium or Standard) will the X100 compete more fiercely against?

[pic 3][pic 4]

>>X100 will compete more fiercely against Standard brand. As the table above shows, the total