Conjoint Interpretation and Market Simulation

Question 1

What can conjoint do and what can’t it do?

Answer 1

Conjoint can’t forecast market size by itself.

Conjoint can forecast market share

Question 2

What are the three building blocks of a forecast?

Answer 2

1. Our Product specifications
2. Competing Products
3. Customer preferences (individual partworths)

Question 3

how to calculate the utility per dollar for price

Answer 3

Utility per dollar (highest price - price of product)

Question 4

What are the choice rules?

Answer 4

1. Maximum Utility

2. Logit model