Microeconomics pindyck chapter 3 ppt

BUS 350 CONSUMER BEHAVIOR Home Work Assignment 2 Conjoint Analysis Details of Assignment You can choose from following topics or any other. Why do consumers select a certain supermarket? Why do consumers select a particular brand? Why do consumers follow a certain celebrity? You may suggest a different research topic, as long as it will fit with giving 10 questions of conjoint analysis style in Survey Monkey. Write 15 to 17 questions that could be used in a conjoint analysis research survey, of the type where the customer has to select the sentence they most agree with and the one they least agree with from a set of 4. Create yourself a SurveyMonkey account. (change the language to English at the bottom of the page) Login and make your survey. Add a question to the survey using a group of 4 sentences from your sentence set. You will find the most suitable question type is matrix of choices only one answer per row Now add another 9 questions, making sure you use a different set of 4 sentences each time. When your 10 questions are finished save your survey, then add the URL of your survey to the comments section below along with your name and student number. Resources: The Survey Monkey web site https://www.surveymonkey.com/ Requirement of Assignment (20/points) Using the Conjoint analysis technique develop and complete a working survey and send the link for evaluation. All the best. Detail of conjoint analysis Basic Idea: Overall utility for a product can be decomposed into the utilities (called part-worths) associated with the levels of the individual attributes of the product; The relative importance of a given attribute is given by the ratio of the part-worth range for that attribute divided by the sum of all part-worth ranges Steps of conjoint Analysis: • Determine attributes and attribute levels • Select product profiles to be measured • Choose a method of stimulus presentation • Decide on the response method • Collect and analyze the data • Interpret the results Attributes and attribute levels • Identify the relevant product attributes that are considered during choice • Select attribute levels that represent the options actually available in the market • Trade-off between the completeness of the representation and the complexity of the design Product profile • Full factorial designs: all possible combinations of the levels of the various attributes • Fractional factorial designs: – subset of all possible combinations – orthogonal designs in which each level of one attribute is paired equally with all the levels of other attributes Example Laptop profiles: Brand Hard Drive RAM Screen Price A B Dell 320 GB 2 GB 15.4 in $1,200 9 6 Apple 320 GB 4 GB 15.4 in $1,200 6 12 Dell 160 GB 4 GB 15.4 in $900 12 5 Apple 320 GB 2 GB 15.4 in $900 11 11 Dell 320 GB 4 GB 12.1 in $1,500 4 3 Apple 320 GB 2 GB 12.1 in $1,500 1 9 Apple 160 GB 4 GB 15.4 in $1,500 3 10 Apple 160 GB 2 GB 12.1 in $900 8 7 Apple 160 GB 4 GB 12.1 in $1,200 5 8 Dell 160 GB 2 GB 12.1 in $1,200 7 1 Dell 320 GB 4 GB 12.1 in $900 10 4 Dell 160 GB 2 GB 15.4 in $1,500 2 2 Methods of stimulus presentations • Verbal descriptions (Apple laptop with 320 GB hard disk space, 4 GB RAM, 15.4”screen, $1,200/- • Pictures • Actual products or prototypes Response method • Rankings or ratings of the product profiles in terms of preference, purchase probability, etc. • Pairwise comparisons of product profiles in terms of preference, purchase probability, etc. • Choice of a product from a set of product profiles Use of conjoint Analysis • Market segmentation • New product design • Trade-off analysis (esp. in pricing decisions) • Competitive analysis Chapter 6 Consumer Learning Consumer Behaviour Copyright © 2006 Pearson Education Canada Inc. Opening Vignette ◼ Why did these products fail? –Listerine Toothpaste –Ben-Gay Aspirin –Oreo Little Fudgies ◼ Why did PocketPaks succeed? Copyright © 2006 Pearson Education Canada Inc. 6-2 Consumer Learning A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour. Copyright © 2006 Pearson Education Canada Inc. 6-3 Learning Processes ◼ Intentional –learning acquired as a result of a careful search for information ◼ Incidental -- learning acquired by accident or without much effort Copyright © 2006 Pearson Education Canada Inc. 6-4 Importance of Learning ◼ Marketers must teach consumers: – where to buy – how to use – how to maintain – how to dispose of products Copyright © 2006 Pearson Education Canada Inc. 6-5 Learning Theories ◼ Behavioural Theories: ◼ Cognitive Theories: Theories based on the A theory of learning premise that learning based on mental takes place as the result information of observable responses processing, often in to external stimuli.