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Asssignment submitted by : Pushpendra Singh Rathore
Roll Number : 71310089
Section A


Customer Analytics for New Product Development
Final Exam
______________________________________________________

Instructions:
This exam is an open book, open notes exam. However, you are expected to
complete the exam on your own, without help from classmates or others.

Please type your answers in this document. After completion, submit this document
to LMS.

There are 8 pages in the Exam Booklet.

You have two hours for the exam.

The total points for this exam is 100, and this exam is worth 30% of your final grade.

All the best!

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Question 1 (30 points)
Focus on any product or service.
(1a) Describe the product or service in terms of benefits to the customer.
Product Home theatre system,
Base variables Design, cost, effectiveness, customer service, sound quality , durability ,
system range etc
The product or service is a value created by an organization for its customers. Organizations
create focal groups to create data which helps them in understanding customer
expectations & preferences resulting in value extraction. That information is segmented and
bundled together to identify and cater different type of customers.
This helps in benefit to both, customer and product companies.
Methods that help in this-
1. Survey and data collection methods
2. Preferences
3. Customer segmentation on base variables
4. Creating preference map and perpetual map
5. Targeting the right customer set

(1b) You are asked to conduct a segmentation study for this product or service. Construct
a survey (questionnaire) with 10-12 questions, clearly specifying what the basis and
descriptor questions are. No open-ended questions are allowed; all questions must be
given in a form so that when data are collected, tools like Cluster Analysis can be used.
Please do not use questions seen in your assignments or from MeXL

Basis Variable-
Do you feel that price is an important factor in selection of a home theatre-
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

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Do you find the home theatre choice should be in accordance with your home design and
colour
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

Brand of home theatre matters a lot to you.
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

Sound quality is very important in deciding a home theatre.
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

Design represents you when you select a particular home theatre system.
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

Size of a home theatre system represents its luxurious style
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

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You prefer watching movies on your personal home theatre at leisure time
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

You prefer your home theatre to be used to watch online movies and games?
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

You like the home theatre system to be connected to a 3D television set?
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree

You prefer enjoying movies, games or songs on your home theatre with family?
1 2 3 4 5 6 7
Strongly Strongly
Disagree Agree


Descriptor variables
Specify your place: Urban Rural Suburban
Specify your age : 1-15 15-30 30-45 Above 45
Specify your gender : Male Female

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Question (2): 30 points
Design a Conjoint Study, with 3 attributes, with Price being one of the attributes. List 2-
3 levels for each attribute. Use MeXL to create bundles for data collection. Act as a
respondent in this Conjoint Analysis, and estimate your partworth utilities. (Hint: you
have done this in your Kirin Beer assignment).

Conjoint study design template-
Conjoint Study Design

Attributes and attribute levels of the Conjoint study.

Attributes / Levels Level 1 Level 2 Level 3
Price 4 7 10
Brand Sony Bose AIWA
Design Sleek Regular Large



(2a) Provide graphs to illustrate your utilities for each attribute
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Price part worth (4-Low Price, 7- Medium , 10-High Price)

Brand Part worth




44
0
40
1
2
3
12
48
Sony
Bose
AIWA
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Design part worth











8
0
4
Sleek
Regular
Large
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(2b) Explain/describe your results (i.e. the partworth utility graphs in above question),
drawing relevant insights for each attribute.
From the respondents data , the analysis of part worth can be done as-
A) People prefer Low priced home theatre as well as high priced. But they are least
interested in medium range home theatres.
B) The highest demand is for BOSE as a brand followed by SONY.
C) Sleek home theatres are most preferred followed by large home theatres. Mid size
home theatres are not received.

Question (3): 25 points
The following questions deal with Ideal Points and Ideal Vectors (or preference
vectors) in a perceptual map.

(3a) Define Ideal Point in 1 sentence:
An Ideal Point represents the best combinations of the two dimensions of an attribute in a
perpetual map viewed by a consumer.
Every dot on a perpetual map represents an ideal point in two dimensions and an area
consisting all ideal points is called a market segment.
(3b) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Point?
To get an Ideal Point in perpetual mapping analysis:
Combine the attribute ratings of ideal products with the other products or
services
Compare how they differ from the one another
Create the collection of ideal points, more density area presents with the market
segment

(3c) Define Ideal Vector(or Preference Vector)in 1 sentence:
Ideal vector is target markets preferred combination of attributes.
On perceptual map, it indicates the preferred ratio of the two dimensions by those consumers
within that segment.

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(3d) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Vector (or Preference Vector)?
Steps to get ideal vector or preference vector-
Introduce preferences as an attribute for all products or services
Assume preference as an another attribute to analysis and segmentation
Identify attributes based on slope and absolute length of the vector.

Question (4): 15 points
Explain a step-by-step process as to how you would use Conjoint Analysis to estimate the
incremental price to be charged for a product with a new feature, such that its market share
remains constant. In other words, how much more can you charge for a product with a new
feature so that the market share before the addition of the new feature, and after the
addition of the new feature stays constant?

Step 1: Gather the information of respondent 1 for various attribute like Brand , Price and
design in as mentioned in home theatre conjoint study design. Gather data for other
respondents as well.
Step 2: Gather the relative importance for every attribute for all the respondents ( 1 in this
case, many in a design)
Step 3: Measure the spread (High Low) for an attribute and its importance.
Step 4: Gather the information to know the monetary equivalent in attribute change (i.e.
change from regular to sleek design of a home theatre system)
Step 5: Measure the increase in price change in correspondence of increase in attribute
change.
Step 6: Run conjoint analysis to measure preference scores, repeat this until the new market
share is adjusted to the feature price.
Example:
Lets take our example that there are 3 brands in the market Sony, Bose and AIWA. We want
to estimate a new price for additional feature added to Sony while maintaining existing
market share.
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Using a sample of respondents, we would conduct conjoint analysis to estimate the market
share for each product for present prices. Assuming market share of Sony is 15 %.
Conduct second conjoint analysis and estimate new market shares given Sonys new
feature, assuming no changes in other products. If the conjoint analysis results in the
improved new market share for Sony to 20%.
Conduct another conjoint analysis, raising the price of Sony home theatre (Keeping others
things constant). At a particular higher price, Sonys product market share will fall back to
15%.
This would be the optimal pricing for the new feature added to the a product of specific
brand.