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! Nikhil Dwarakanath Section A 71310012
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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 / Service Chosen Smartphone Benefits to the customer include (not exhaustive) Voice Communication Data Communication Photo & Video Capture Movie & Music Device E-Mail Access Social Media Integration Availability and Variety of App EcoSystem Long Battery Life (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 Survey For Segmentation of Smartphone Users 1. Brand is the most important thing for me when selecting a Smartphone Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
2. I need E-Mail connectivity all day on my smart device Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
3. I watch a lot of movies on my Smartphone Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
4. I listen to a lot of music on my Smartphone Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
5. I take a lot of pictures / video and a good quality camera is very important to me when selecting a Smartphone Strongly 1 2 3 4 5 6 7 Strongly 3
Disagree Agree
6. I am a Social media junkie and post a ton of stuff via my mobile Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
7. I download and use a lot of Apps on my Smartphone Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
8. I am a Smartphone junkie and need All-Day battery life Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
9. My Age ___________________
10. My Gender M_____ F_____
11. My Annual Income Rs.________
12. Check One Of The Following. I am A Professional_______ A Business Man_______ A Student________
Other (Please Mention)___________________
Questions 1 to 8 are basis questions that attempt to identify needs and attributes that are important to the response group. They attempt to understand the relative importance of attributes like Brand, E-mail Connectivity, Movie/Music Experience, Camera Quality, Social media integration, App ecosystem and battery life, which buying a Smartphone. Questions 9 to 12 are descriptor questions that attempt to identify the underlying segments based on the demographics of the response group such as Age, Gender, Income Profile and Occupation.
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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). I chose the following attributes, with the following levels Price was pre-specified in the question. The other attributes I chose were battery life and the type of smartphone screen, both with three levels each.
The product bundles were created in MEXL
The respondent ratings were inputted in the template
The Estimated part worth utilities on the basis of the above response ratings is as follows
(2a) Provide graphs to illustrate your utilities for each attribute (2b) Explain/describe your results (i.e. the partworth utility graphs in above question), drawing relevant insights for each attribute.
Questions (2a) and (2b) have been answered together Graph of my part worth utilities for all attributes relative to the others I am a value seeking customer who cares most about battery life and appreciates an LED display
This has also been broken down for each attribute I have a high preference for a long battery life
I prefer an LED display the most, followed by an IPS
I seek value in terms of price, but am also ok to pay for certain features
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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: Ideal Point: An Ideal point is the ideal combination of attributes (translated to dimensions) as seen by a customer or a set of customers. (3b) What specific steps would you take in Perceptual Mapping analysis to get an Ideal Point? To include an Ideal Point in a Perceptual mapping analysis, the concept of an ideal brand is introduced in the survey questionnaire. The additional Ideal Brand is then sought to be evaluated by the respondents. So if every brand is being evaluated on four attributes, lets say, battery life, screen quality, email connectivity and sturdiness. Then an additional set of questions is introduced asking the respondent to rate the Ideal Brand in his/her mind on these four attributes. Steps include Add an additional brand Ideal Brand that respondents have to rate on all attributes Ask respondents to evaluate the Ideal brand with desired ratings for attributes
(3c) Define Ideal Vector(or Preference Vector)in 1 sentence: Ideal Vector: An Ideal Vector indicates the direction in which a respondents preference increases. The slope of the ideal vector indicates the preferred ratio of the two dimensions by the respondents. It helps identify attributes that most influence preferences and is hence also called the preference vector (3d) What specific steps would you take in Perceptual Mapping analysis to get an Ideal Vector (or Preference Vector)? To include an Ideal Vector in a Perceptual mapping analysis, the concept of a preference attribute is introduced in the survey questionnaire. The additional Preference attribute is then sought to be evaluated by the respondents for all brands. So taking the same example, every brand is now evaluated on five attributes, i.e, battery life, screen quality, email connectivity, sturdiness and the newly introduced Preference attribute. Then an additional set of question is introduced asking the respondent to rate each brand in terms of his/her preference of the same. 7
For Example, Please indicate your Preference for Brand B1 Not Preferred 1 2 3 4 5 6 7 Highly Preferred
Steps include Add Preference as an additional attribute for all brands in the questionnaire scope Ask respondents to indicate their preference for each of the brands
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? Steps Include 1. Identify Relevant Competitor Products 2. Identify attributes across the product category that are relevant for Purchase behaviour 3. Identify sample of relevant customers (respondents) 4. Conduct a conjoint analysis and estimate market share for each product at present prices 5. Conduct a second conjoint analysis with the new product (with new feature) and estimate market shares again. Keep all other attributes for the incumbent and competition the same. Assume that the introduction of a new feature keeping everything else constant resulted in a market share increase. 6. Conduct a third conjoint increasing the price of the newly introduce product, keeping everything else constant. This will ideally result in a reduction in market share due to the trade-off respondents make given the increase in price This process may be iterative to find the price point that results in the market share falling back to the initial level. 7. The difference between the higher price and the original price will be the incremental amount the incumbent can charge for the new feature, without losing market share