a. Suppose the overall utility (sum of part-worths) of the current favorite cereal is 75 for each child. What is the product design that will maximize the share of choices for the seven children in the sample? b. Assume the overall utility of the current favorite cereal for the first four children in the group is 70, and the overall utility of the current favorite cereal for the last three children in the is 80. What is the product design that will maximize the share of choices group for the seven children in the sample?
a. Suppose the overall utility (sum of part-worths) of the current favorite cereal is 75 for each child. What is the product design that will maximize the share of choices for the seven children in the sample? b. Assume the overall utility of the current favorite cereal for the first four children in the group is 70, and the overall utility of the current favorite cereal for the last three children in the is 80. What is the product design that will maximize the share of choices group for the seven children in the sample?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Transcribed Image Text:Burnside Marketing Research conducted a study for Barker Foods on some designs
for a new dry cereal. Three attributes were found to be most influential in determin-
ing which cereal had the best taste: ratio of wheat to corn in the cereal flake, type
of sweetener (sugar, honey, or artificial), and the presence or absence of flavor bits.
Seven children participated in taste tests and provided the following part-worths for
the attributes:
Wheat/Corn
Sweetener
Flavor Bits
Child
Low
High
Sugar
Honey
Artificial
Present
Absent
15
35
30
40
25
15
9.
30
20
40
35
35
8.
11
40
25
20
40
10
7
14
35
25
30
40
25
20
20
30
15
18
40
35
18
14
20
30
25
15
20
25
35
40
30
40
16
20
11
a. Suppose the overall utility (sum of part-worths) of the current favorite cereal is 75 for
each child. What is the product design that will maximize the share of choices for the
seven children in the sample?
b. Assume the overall utility of the current favorite cereal for the first four children in the
group is 70, and the overall utility of the current favorite cereal for the last three children
in the
for the seven children in the sample?
group
is 80. What is the product design that will maximize the share of choices
1234 n67
Expert Solution
Step 1
Given Table:
| Wheat/Corn | Sweetener | Flavor Bits | |||||
| Child | Low | High | Sugar | Honey | Artificial | Present | Absent |
| 1 | 15 | 35 | 30 | 40 | 25 | 15 | 9 |
| 2 | 30 | 20 | 40 | 35 | 35 | 8 | 11 |
| 3 | 40 | 25 | 20 | 40 | 10 | 7 | 14 |
| 4 | 35 | 30 | 25 | 20 | 30 | 15 | 18 |
| 5 | 25 | 40 | 40 | 20 | 35 | 18 | 14 |
| 6 | 20 | 25 | 20 | 35 | 30 | 9 | 16 |
| 7 | 30 | 15 | 25 | 40 | 40 | 20 | 11 |
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