Conjoint Project

Pricing

Team Members

Piyush Singh
Komal Gambhir
Meenakshi Ganesh
Neha Wadhawan
2 Conjoint Project

Project Description – We will be conducting a conjoint research on the Indian Television Market.
What factors contribute to consumer preferences in this space?

Step 1: Relevant Attributes and levels -

1. Brand
a. Samsung
b. LG
c. Sony
2. Screen Size
a. 32”
b. 40”
c. 42”
3. Advanced Features
a. Plasma
b. LCD
c. LED
4. Price Points
a. Rs 40000
b. Rs 69000
c. Rs 105000

Step 2: Using factorial Design tables, we come up with nine profiles-

Profiles Brand Screen Size Advanced Features Price Points in

Rs
Bundle 1 Samsung 32" Plasma 40000
Bundle 2 Samsung 40" LCD 69000
Bundle 3 Samsung 42" LED 105000
Bundle 4 LG 32" LCD 105000
Bundle 5 LG 40" LED 40000
Bundle 6 LG 42" Plasma 69000
Bundle 7 Sony 32" LED 69000
Bundle 8 Sony 40" Plasma 105000 November 12, 2010
Bundle 9 Sony 42" LCD 40000

Step 3: Please find the link to the Survey that we had designed for collecting consumer
ratings.

Link: https://isb.qualtrics.com/SE/?SID=SV_1TfeXMmed3OI9sU

Step 4: Collection of rating across respondents and profiles. We had 32 responses, of which
we took 24 responses since other responses were inconsistent.

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3 Conjoint Project

Bundle Bundle Bundle Bundle Bundle Bundle Bundle Bundle Bundle

1 2 3 4 5 6 7 8 9
R1 80 60 70 0 100 95 60 20 100
R2 50 35 70 25 80 100 45 65 80
R3 60 60 40 60 70 50 60 50 60
R4 50 60 40 30 80 70 40 60 70
R5 30 20 10 0 0 10 5 5 20
R6 30 40 50 20 20 20 50 50 60
R7 70 75 75 75 70 75 80 70 70
R8 50 25 10 10 50 45 20 20 50
R9 0 10 50 20 40 10 55 20 50
R10 30 20 10 10 30 20 20 10 35
R11 3 5 6 0 7 0 5 0 7
R12 50 70 45 80 90 75 40 96 97
R13 80 90 90 70 75 80 95 90 99
R14 50 10 1 1 1 50 10 1 50
R15 40 45 50 40 50 60 80 90 60
R16 0 25 20 5 10 15 5 15 5
R17 50 60 70 10 40 40 20 30 60
R18 60 20 10 10 50 50 60 30 100
R19 67 62 85 76 89 78 98 75 78
R20 20 20 0 0 30 30 40 40 20
R21 0 0 0 0 0 0 50 50 50
R22 70 75 80 60 65 70 80 85 90
R23 70 80 90 50 60 70 60 70 80
R24 70 80 90 70 80 80 70 90 60

Step 5: Creation of X matrix from the responses.

Following matrix inputs will be used as independent variables in the next step against ratings as
dependent variables to come up with individual level Utility equations.

Bundle Intercept Brand Size Advanced Price Points

Features November 12, 2010
Alpha Beta 1 Beta 2 Beta 3 Beta 4 Beta 5 Beta 6 Beta 7 Beta 8

Bundle 1 1 0 0 0 0 0 0 0 0
Bundle 2 1 0 0 0 1 0 1 0 1
Bundle 3 1 0 0 1 0 1 0 1 0
Bundle 4 1 0 1 0 0 0 1 1 0
Bundle 5 1 0 1 0 1 1 0 0 0
Bundle 6 1 0 1 1 0 0 0 0 1
Bundle 7 1 1 0 0 0 1 0 0 1

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4 Conjoint Project

Bundle 8 1 1 0 0 1 0 0 1 0
Bundle 9 1 1 0 1 0 0 1 0 0

Step 6: Run individual regressions.

We run individual regressions, with

Dependent variable Y = Ratings

Independent Variable X1 = LG Dummy

Independent Variable X2 = Sony Dummy

Independent Variable X3 = 40’’ Dummy

Independent Variable X4 = 42’’ Dummy

Independent Variable X5 = LCD Dummy

Independent Variable X6 = LED Dummy

Independent Variable X7 = Rs 69000 Dummy

Independent Variable X8 = Rs 105000 Dummy

For each individual response we will get utility equation as follows –

Y = B0 + B1*LG + B2*Sony + B3*40’’ + B4* 42’’ + B5* LCD + B6* LED + B7* Rs 69000 + B8* Rs
105000

Respondents R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12

Samsung 0 0 0 0 0 0 0 0 0 0 0 0
LG Beta 1 -10 11.66667 3.333333 6.666667 -10 13.33333 1.28E-15 1.666667 21.66667 1.666667 -0.66667 22.66667
Sony Beta 2 -5 16.66667 6.666667 10 -16.6667 -20 6.42E-16 6.666667 3.333333 2.04E-15 -2.33333 26.66667
Max- Min 10 16.66667 6.666667 10 16.66667 33.33333 1.28E-15 6.666667 21.66667 1.666667 2.333333 26.66667
32'' 0 0 0 0 0 0 0 0 0 0 0 0
40'' Beta 3 41.66667 43.33333 -10 20 1.666667 10 -1.66667 8.333333 11.66667 1.666667 1.666667 15.66667
42'' Beta 4 13.33333 20 1.21E-15 26.66667 -3.33333 3.333333 -3.33333 5 -1.66667 9.04E-16 1.333333 28.66667
Max- Min 41.66667 43.33333 10 26.66667 5 10 3.333333 8.333333 13.33333 1.666667 1.666667 28.66667
Plasma 0 0 0 0 0 0 0 0 0 0 0 0
November 12, 2010
LCD Beta 5 11.66667 -6.66667 3.333333 -6.66667 -10 6.666667 3.333333 -11.6667 38.33333 -4.7E-16 5 -15.3333
LED Beta 6 -11.6667 -25 6.666667 -6.66667 -1.66667 6.666667 1.666667 -10 16.66667 1.666667 3 8.666667
Max-Min 23.33333 25 6.666667 6.666667 10 6.666667 3.333333 11.66667 38.33333 1.666667 5 24
Rs 40000 0 0 0 0 0 0 0 0 0 0 0 0
Rs 69000 Beta 7 -63.3333 -16.6667 -13.3333 -23.3333 -11.6667 3.333333 3.333333 -36.6667 7.54E-15 -21.6667 -3.66667 -5.33333
Rs 105000 Beta 8 -21.6667 -10 -6.66667 -10 -5 2.18E-15 6.666667 -20 -5 -11.6667 -2.33333 -17.3333
Max-Min 63.33333 16.66667 13.33333 23.33333 11.66667 3.333333 6.666667 36.66667 5 21.66667 3.666667 17.33333
Total 138.3333 101.6667 36.66667 66.66667 43.33333 53.33333 13.33333 63.33333 78.33333 26.66667 12.66667 96.66667

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5 Conjoint Project

Respondents R13 R14 R15 R16 R17 R18 R19 R20 R21 R22 R23 R24
Samsung 0 0 0 0 0 0 0 0 0 0 0 0
LG Beta 1 8 -1E-15 31.66667 -6.66667 -23.3333 33.33333 12.33333 20 50 10 -10 -6.66667
Sony Beta 2 -11.6667 -3 5 -5 -30 6.666667 9.666667 6.666667 5.02E-15 -10 -20 -3.33333
Max- Min 19.66667 3 31.66667 6.666667 30 33.33333 12.33333 20 50 20 20 6.666667
32'' 0 0 0 0 0 0 0 0 0 0 0 0
40'' Beta 3 8 13.33333 3.333333 10 30 10 6.28E-15 -3.33333 1.88E-15 10 20 6.666667
42'' Beta 4 3.333333 -16.3333 8.333333 13.33333 16.66667 -10 -5 10 7.38E-15 5 10 13.33333
Max- Min 8 29.66667 8.333333 13.33333 30 20 5 13.33333 7.38E-15 10 20 13.33333
Plasma 0 0 0 0 0 0 0 0 0 0 0 0
LCD Beta 5 3.333333 -29.6667 -3.33333 1.666667 3.333333 -6.66667 17.33333 -6.66667 2.25E-15 2.22E-16 -1.6E-15 6.28E-16
LED Beta 6 3 -13.3333 -15 1.666667 3.333333 -3.33333 -1.33333 -16.6667 3.09E-15 -4.6E-16 -2.1E-16 -10
Max-Min 3.333333 29.66667 15 1.666667 3.333333 6.666667 18.66667 16.66667 3.09E-15 6.81E-16 2.1E-16 10
Rs 40000 0 0 0 0 0 0 0 0 0 0 0 0
Rs 69000 Beta 7 -1.33333 -32.6667 10 8.333333 -13.3333 -53.3333 0.666667 -10 4.07E-15 1.52E-15 -3.2E-16 13.33333
Rs 105000 Beta 8 3.666667 -10.3333 11.66667 10 -10 -26.6667 1.333333 6.666667 7.6E-15 2.95E-15 -3.2E-15 6.666667
Max-Min 5 32.66667 11.66667 10 13.33333 53.33333 1.333333 16.66667 7.6E-15 2.95E-15 3.24E-15 13.33333
Total 36 95 66.66667 31.66667 76.66667 113.3333 37.33333 66.66667 50 30 40 43.33333

Step 7: Utility or importance weights calculation across attribute levels and respondents.

RespondentsSamsung LG Sony 32'' 40'' 42'' Plasma LCD LED Rs 40000Rs 69000 Rs 105000
R1 0.072289 0 0.03614 0 0.301205 0.096386 0.16867 0.253012 0.084337 0.45783 0 0.301204819
R2 0 0.11475 0.16393 0 0.42623 0.196721 0.2459 0.180328 0 0.16393 0 0.06557377
R3 0 0.09091 0.18182 0.272727 0 0.272727 0 0.090909 0.181818 0.36364 0 0.181818182
R4 0 0.1 0.15 0 0.3 0.4 0.1 0 0 0.35 0 0.2
R5 0.384615 0.15385 0 0.115385 0.153846 0.038462 0.23077 0 0.192308 0.26923 0 0.153846154
R6 0.625 0.875 0.25 0 0.1875 0.0625 0 0.125 0.125 0 0.0625 4.07922E-17
R7 0 9.6E-17 4.8E-17 0.25 0.125 0 0 0.25 0.125 0 0.25 0.5
R8 0 0.02632 0.10526 0 0.131579 0.078947 0.18421 0 0.026316 0.57895 0 0.263157895
R9 0 0.2766 0.04255 0.170213 0.319149 0.148936 0 0.489362 0.212766 0.06383 0.06383 0
R10 0 0.0625 7.7E-17 0 0.0625 3.39E-17 0.0625 0.0625 0.125 0.8125 0 0.375
R11 0.184211 0.13158 0 0 0.131579 0.105263 0 0.394737 0.236842 0.28947 0 0.105263158
R12 0 0.23448 0.27586 0 0.162069 0.296552 0.24828 0.089655 0.337931 0.17931 0.124138 0
R13 0.546296 0.76852 0.22222 0 0.222222 0.092593 0 0.092593 0.083333 0.13889 0.101852 0.240740741
R14 0.031579 0.03158 0 0.312281 0.452632 0.140351 0.31228 0 0.17193 0.34386 0 0.235087719
R15 0 0.475 0.075 0 0.05 0.125 0.225 0.175 0 0 0.15 0.175
R16 0.210526 0 0.05263 0 0.315789 0.421053 0 0.052632 0.052632 0 0.263158 0.315789474
R17 0.391304 0.08696 0 0 0.391304 0.217391 0 0.043478 0.043478 0.17391 0 0.043478261
R18 0 0.29412 0.05882 0.176471 0.264706 0.088235 0.05882 0 0.029412 0.47059 0 0.235294118
R19 0 0.33036 0.25893 0.133929 0.133929 0 0.5 0.964286 0.464286 0 0.017857 0.035714286
R20 0 0.3 0.1 0.2 0.15 0.35 0.25 0.15 0 0.25 0.1 0.35
R21 0 1 1E-16 0 3.77E-17 1.48E-16 0 4.51E-17 6.19E-17 0 8.15E-17 1.5199E-16
R22 0.666667 1 0.33333 0 0.333333 0.166667 2.3E-17 3.01E-17 7.41E-18 0 5.06E-17 9.84897E-17
November 12, 2010
R23 0.5 0.25 0 0 0.5 0.25 5.2E-18 -3.5E-17 0 8.1E-17 7.28E-17 0
R24 0.153846 0 0.07692 0 0.153846 0.307692 0.23077 0.230769 0 0 0.307692 0.153846154

Final Step: Sum up total utility across each attribute levels.

Attribute Levels Total Utility

Brand Samsung 3.77

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6 Conjoint Project

LG 6.60
Sony 2.38
Size 32'' 1.63
40'' 5.27
42'' 3.86
Advanced Features Plasma 2.82
LCD 3.64
LED 2.49
Price Points Rs 40000 4.91
Rs 69000 1.44
Rs 105000 3.93

Total Utility of the Bundles/Profiles –

Profiles Brand Screen Size Advanced Price Points in Total Utility

Features Rs
Bundle 1 Samsung 32" Plasma 40000 13.12
Bundle 2 Samsung 40" LCD 69000 14.12
Bundle 3 Samsung 42" LED 105000 14.05
Bundle 4 LG 32" LCD 105000 15.81
Bundle 5 LG 40" LED 40000 19.27
Bundle 6 LG 42" Plasma 69000 14.72
Bundle 7 Sony 32" LED 69000 7.95
Bundle 8 Sony 40" Plasma 105000 14.40
Bundle 9 Sony 42" LCD 40000 14.79

Among the profiles presented in the survey: Bundle 5(LG, 40’’, LED, Rs 40000)
has the maximum utility.
November 12, 2010

But we can have a Bundle 10 which will give Maximum Total Utility; it is given
as – LG, 40’’, LCD, Rs 40000.

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