Q2
Introduction
In this case, the company is looking to expand the business in the snack category; it has been given a data set of 2,000 shoppers. Base on this data, the report discuss three kind of goals which are does the brand have normal loyalty given its market share, any niche brands in the market and, focus on selling more credits or attracting new customers if the brand is growing.
Q3:
Description of the conjoint analysis
Conjoint analysis is used to measure preferences for product features, to learn how changes to price affect demand for products or services, and to forecast the likely acceptance of a product when it is brought to the market. Therefore, it is widely used in marketing research as a quantitative method. It is means that conjoint analysis can determine the estimate of customers about an individual product or service. With the price changed, the demand of product or service will be changed, to help to manage how changes to price affect demand for products or services. After that, when the product come into the market, It can prospect the acceptance of a product. In this question, it is concerned about the choice probabilities for all eight wine categories to enter the market. According to conjoint analysis, there are three attributes of eight alternatives including brand, region and price to analysis the utilities and market share to determine a best alternative.
Firstly, we need to calculate the partworths for well-known region, well-known brand and for a $5 increase in price. We can get the information from the excel data:
Price is a major factor in consumers’ decision to buy high-class wine from table 3.0. And, an increase in $5 per bottle of wine would drop down the utility by 0.79 as consumers do not want to pay more for high-class product.
In addition, the changes of region from not well-known to well-known would increase