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Amol Kadam
Vaibhav Panchal Tejas Vasa Niraj Dwivedi Shashank Pamul Pratima Patil
28
39 58 72 94 98
The model was first presented by Oliver Williamson. This model emphasizes the trade-off associated with horizontal mergers between gains resulting from lower costs of production and the losses associated with higher prices due to greater degree of monopoly power.
Effect of merger of Northwest Airlines (NW) with Republic Airlines (RC) on prices
Market Total Markets Relative prices 1985 Category 1 16 Category 2 41 Category 3 11 Category 4 16 2.8 2.6 8.2 6.7 1986 4.5 3.5 10.3 9.5 1987 5.9 2.8 7.5 7.1 Average change(%) 1985-1987 4.3 2.6 5.2 5.5
Model only considers the effect of the merger on price. The model ignores the possibilities that similar gains in cost reductions and efficiencies may instead arise due to growth of market demand.
Definition: Conjoint analysis (also called trade-off analysis) is a multivariate technique used specifically to understand how consumers develop preferences for products or services and to formulate predictions about market attitude towards new product concepts.
Different Perspective different goals Buyers want all of the most desirable features at lowest possible price Seller wants to maximize profit by: Minimizing cost of providing features Providing products that offer greater overall value than the competition
Conjoint Analysis is concern with understanding how people make choices between products or services or a combination of product and service, so that businesses can design new products or services that better meet customers underlying needs.
Traditional Conjoint
Full Profile Partial Profile/Fractional Factorial Design Self Explicated
The buyer perceives a product or service as a bundle of attributes or characteristics. When a potential buyer evaluates a product, they mentally associate a value (or a utility) to each attribute level. To determine the total utility of the product, the buyer mentally combines the amounts of utility provided by each attribute at various levels. The rule used in combining attributes to produce an evaluation of the total utility of the product/service is a compensatory rule.
To compare the different product concepts, the researcher must select a measure of preference either: The non-metric rank-ordering method (i.e. rankordering the product concepts from most to least preferred) The metric rating method (i.e. a 1 to 10 scale).
Attribute: An Attribute is a general feature of a product or service say size, colour, speed, delivery time Level: Each attribute is then made up of specific levels. So for the attribute colour, level might be red, green, blue, and so on. For Example:The attributes to be considered are:
Brand: L'Oreal, Garnier, Gillette and Riem Price: 50, 100, 150 and 200 Types of packaging: spray and aerosol.
In this study, there three attributes of which two have four levels and one two levels, thus in total there are 32 (4x4x2) distinct product concepts.
First, select what attributes of the product you would like to test, and what the possibilities are for each attribute. To demonstrate, let's use the example of an ice cream shop, which might want to know consumer attitudes about:
preferred flavor (vanilla, chocolate, strawberry, or black raspberry) price (Rs 10, RS. 15, RS. 20, Rs. 30) container (cone, cup) freshness (homemade & fresh, factory-produced) healthiness (reduced fat, regular)
The attributes are totally new to consumers . The number attributes to consider to have a realistic description of the product concept is too large. The cognitive capacities of the respondents are weak.