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Abdul Afzal
Section- A
71310018

Customer Analytics for New Product Development
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!

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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.

Benefits are the reasons customers buy the product or service. For example, the benefits of
some ovens to buyers include safety, ease of use, affordability, orin the case of many
ovens that feature stainless steel casingsprestige Its important to remember that
customers buy products and services because they want to solve a problem or meet a need.
Consciously or unconsciously, customers will always be asking the question, Whats in it for
me? product and service offerings have to deliver solutions and satisfy needs, or they
wont be successful. Given that benefits are ultimately more important to customers than
features, it is imperative that understand the benefits products and services provide,
emphasize these benefits in your sales efforts, and update your products and services when
new or additional benefits are desired by customers.
My basis variables are : Service Quality, pressure cooker Price, Types of Services, Service of
customer attending staff
My Descriptor variables are Number of visits, Income, Gender
write the questions
(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
Descriptor variables:
Your age in Years:
Gender: M/ F
Are you living in: Suburban/Urban/ Rural
Monthly Income:
Working Professional: Yes/ No
Basis variables:
Metal quality is most important to me when selecting cooker.
1 (Agree) 2 3 4 5 6 7(Not Agree)
Brand is most important to me when selecting pressure cooker
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1 (Agree) 2 3 4 5 6 7(Not Agree)
Price is the most important to me when selecting Cooker
1 (Agree) 2 3 4 5 6 7(Not Agree)
Cooking is one of my favourite things to do
1 (Agree) 2 3 4 5 6 7(Not Agree)

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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).

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




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(2b) Explain/describe your results (i.e. the partworth utility graphs in above question),
drawing relevant insights for each attribute.
clearly older cookers is not preferred 3 years and above
people are ready to pay higher to get better cookers
Lumax is the most preferred brand
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:
The ideal point represents the location of the product that most determines to a specific
person.


(3b) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Point?
Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to
visually display the perceptions of customers or potential customers. Typically the position
of a product, product line, brand, or company is displayed relative to their competition.
Perceptual maps can have any number of dimensions but the most common is two
dimensions.
For Example: consumer perceptions of various automobiles on the two dimensions of
sportiness/conservative and classy/affordable. This sample of consumers felt Porsche was
the sportiest and classiest of the cars in the study. Plymouth was most practical and
conservative

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(3c) Define Ideal Vector(or Preference Vector)in 1 sentence:


An ideal vectors angle represents the importance of 2 dimensions as perceived by the
market. Preference vector captures the attributes



(3d) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Vector (or Preference Vector)?
1) Introduce "preferences" as an additional attribute for all brands
2) Analyze"preference" as if it is another "attribute"
3) Attributes that most influence preferences can be identifies
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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?

We re-run the analysis using the new product (new feature). A pie chart containing
the market share is obtained. We observe that for certain other products the market
share may have reduced.
2
nd
step we will re-run conjoint using the optimal product option.
3
rd
step choose the options with highest market share pertaining to the new
product.
Reconcile the values of our New Run and Previous Run
Next we observe which features have changed and which price range is giving an
optimal market share.
Decision can be made on the product pricing.