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Customer Analytics for New Product Development

Final Exam
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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.

Answer :- Considering an example of a hot water system. The system sprang a leak
yesterday when the cylinder lining the tank cracked.
In this example, the benefit uppermost for the customer is hot showers . Other advantage
is that customer can install it by himself . The feature we can consider here as installation
service. Which brand, gas or electric and what level of temperature condition and how
quickly system gets installed .


(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

Q.1. Please select customer gender ?
Male Female
Q.2. Please select Marital Status:
Single Married
Q.3. Please select an purpose :
Official use domestic use

Q.4. Type of system you like:
Electric Manual Gas coal
Q.5. what parts of the "look and feel" of the hot wtaer system are important to you when
choosing one? "Feel free to rate more than one option"
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FEATURES 1(lowest) 2 3 4 5(Highest)
colour
functionality
Weight
Brand
Engine capacity
Eclectric consumption

Q.6 How important is the design or style (Look and Feel) of a Laptop to you as opposed to
functionality?
NOT IMP Fairly IMP Very IMP Extremely Imp
Q.7. What size of the Laptop would you prefer?
Small Medium Large
Q8. Number of family members in house
2 3 4 5
Q9. How often you use the system
Very Often oftenly rarely

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

Attributes and attribute levels of the Conjoint study.

Attributes / Levels Level 1 Level 2 Level 3

Model 1980 2000 2010

Price 800 900 300

colour Black white red



Bundles

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Answer :- Considered an example of Car model and their price .

Respondents' Preference Partworths

Respondents' preference partworths. The most preferred profiles sum up to 100, the least preferred to 0.

Respondents /
Attributes and Levels
1980 2000 2010 800 900 300 Black white red
Respondent 1
0 37 52 0 20 15 28 0 10


(2a) Provide graphs to illustrate your utilities for each attribute


1980, 20%
2000, 30%
2010, 50%
1980
2000
2010
Attribute levels for a full-profile, fractional design Conjoint study

Attributes / Bundles Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8 Bundle 9
Model 1980 1980 1980 2000 2000 2000 2010 2010 2010
Price 800 900 300 800 900 300 800 900 300
colour Black white red white red Black red Black white
5









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(2b) Explain/describe your results (i.e. the partworth utility graphs in above question),
drawing relevant insights for each attribute.
Respondents' Preference Partworths

Respondents' preference partworths. The most preferred profiles sum up to 100, the least preferred to 0.

Respondents /
Attributes and Levels
1980 2000 2010 800 900 300 Black white red
Respondent 1
0 37 52 0 20 15 28 0 10

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:
Answer :- Ideal points reflect ideal combinations of the two dimensions as seen by a
costumer .

(3b) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Point?
In order to get ideal points , following steps should considered :-
Perceptual map has basic 2 approaches:
Point Approach: Distance of a measured value from its ideal-value on the map is the
measure of preference for the product.
Steps:-
Need to get an ideal combination of product characteristics.
Need to look for a space that is currently unoccupied by competitors .
Need to look for the terms of characteristics and in comparison to competing companies.
(3c) Define Ideal Vector(or Preference Vector)in 1 sentence:


Answer :- Ideal Vector determine the target market's preferred combination of attributes .
(3d) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Vector (or Preference Vector)?
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Need to Define the market in which the product or brand will compete .
Need to look into the target market and their preferred combination of attributes
Need to examine the fit between the product and the market.


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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?
Answer :-
Following steps can be perform :-
First create analysis template and then check option for existing Profile products . Need to
describe these existing products if we plan to study the market potential of new offerings .
If the current market if given to us then we can include shares of existing products to get a
more precise relationship between preferences . We can allocate a specific price to each
level in such a way that market share remains constant .In final step , we can generate
workbook for Existing Product Profiles and Incremental Revenue .