Market Research

Assignment

Conjoint Analysis Exercise

Submitted to – Prof. R.N

Submitted by-
Ques Assume that Microline Electronics, an assembler of various desktops & Laptops,
wants to introduce a new variety of Laptop.

Attributes for the laptop

1. Microproocessor- IBM, AMD, NEC

We code the various variables as follows-

Microprocessor V1 V2
M1(IBM) 1 0
M2(AMD) 0 1
M3(NEC) -1 -1

Clock Speed V3
C1(2 GHz) 1
C2(3 GHz) -1

HDD(GB) V4
HDD 1 -250 1
HDD2- 320 -1

Price (000 of rupees) V5 V6

Sr no. V1 V2 V3 V4 V5 V6 V7
1 1 0 0 1 0 1 36
2 1 0 1 1 1 0 35
3 0 1 1 0 -1 -1 34
4 1 0 1 1 1 0 33
5 0 1 0 0 0 1 32
6 0 1 1 0 1 0 31
7 1 0 1 0 0 1 30
8 -1 -1 0 1 1 0 29
9 0 1 0 1 0 1 28
10 -1 -1 0 1 -1 -1 27
11 -1 -1 0 0 -1 -1 26
12 -1 -1 1 1 1 0 25
13 1 0 1 0 -1 -1 24
14 1 0 1 0 0 1 23
15 -1 -1 1 1 1 0 22
16 -1 -1 0 1 -1 -1 21
17 -1 -1 1 1 -1 -1 20
18 -1 -1 0 0 1 0 19
19 0 1 1 0 1 0 18
20 0 1 0 1 -1 -1 17
21 1 0 0 0 0 1 16
22 1 0 1 0 1 0 15
23 0 1 1 0 1 0 14
24 0 1 0 1 -1 -1 13
25 1 0 0 0 0 1 12
26 1 0 1 1 -1 -1 11
27 -1 -1 1 1 -1 -1 10
28 0 1 1 0 0 1 9
29 0 1 0 0 1 0 8
30 1 0 1 1 -1 -1 7
31 1 0 1 1 -1 -1 6
32 1 0 0 0 1 0 5
33 1 0 0 0 1 0 4
34 1 0 1 0 -1 -1 3
35 -1 -1 1 1 -1 -1 2
36 -1 -1 1 1 0 1 1

The 6 variables are used to represent 3 levels of microprocessor(M1,M2,M3), 2 levels of clock speed
(C1, C2), two level of hard disk (HDD1, HDD2), three level of prices(P1,P2,P3).
Output
Descriptive Statistics

Mean Std. Deviation N

V7 18.50 10.536 36

V1 .11 .854 36

V2 -.03 .774 36

V3 .58 .500 36

V4 .50 .507 36

V5 -.03 .878 36

V6 -.14 .798 36

Correlations

V7 V1 V2 V3 V4 V5 V6

Pearson Correlation V7 1.000 -.051 .072 -.084 .053 .171 .199

V1 -.051 1.000 .480 .111 -.330 .080 .233

V2 .072 .480 1.000 -.031 -.400 .125 .225

V3 -.084 .111 -.031 1.000 .056 -.027 -.149

V4 .053 -.330 -.400 .056 1.000 -.289 -.318

V5 .171 .080 .125 -.027 -.289 1.000 .565

V6 .199 .233 .225 -.149 -.318 .565 1.000

Sig. (1-tailed) V7 . .384 .339 .313 .378 .159 .123

V1 .384 . .002 .259 .025 .321 .086

V2 .339 .002 . .429 .008 .234 .094

V3 .313 .259 .429 . .372 .438 .193

V4 .378 .025 .008 .372 . .044 .030

V5 .159 .321 .234 .438 .044 . .000

V6 .123 .086 .094 .193 .030 .000 .

N V7 36 36 36 36 36 36 36

V1 36 36 36 36 36 36 36

V2 36 36 36 36 36 36 36
 V3 36 36 36 36 36 36 36

V4 36 36 36 36 36 36 36

V5 36 36 36 36 36 36 36

V6 36 36 36 36 36 36 36

Variables Entered/Removedb

Variables Variables
Model Entered Removed Method

1 V6, V3, V2, V4, . Enter

a. All requested variables entered.

b. Dependent Variable: V7

Model Summaryb

Change Statistics

Adjusted R Std. Error of the R Square

1 .285a .081 -.109 11.094 .081 .428 6 29

a. Predictors: (Constant), V6, V3, V2, V4, V1, V5

b. Dependent Variable: V7

ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 315.832 6 52.639 .428 .854a

Residual 3569.168 29 123.075

Total 3885.000 35

a. Predictors: (Constant), V6, V3, V2, V4, V1, V5

b. Dependent Variable: V7
 Coefficientsa

Standardized
Unstandardized Coefficients Coefficients 95.0% Confidence Interval for B

Model B Std. Error Beta t Sig. Lower Bound Upper Bound

1 (Constant) 17.963 3.491 5.145 .000 10.822 25.103

V1 -1.299 2.608 -.105 -.498 .622 -6.632 4.034

V2 1.804 2.898 .133 .622 .539 -4.124 7.732

V3 -1.015 3.866 -.048 -.263 .795 -8.923 6.892

V4 3.366 4.277 .162 .787 .438 -5.382 12.113

V5 1.314 2.641 .109 .497 .623 -4.088 6.716

V6 2.321 3.005 .176 .772 .446 -3.825 8.467

a. Dependent Variable: V7

Collinearity Diagnosticsa

Variance Proportions
Dimensi
Model on Eigenvalue Condition Index (Constant) V1 V2 V3 V4 V5

1 1 2.628 1.000 .03 .00 .01 .03 .04 .01

2 1.755 1.224 .02 .12 .08 .03 .00 .05

3 1.174 1.496 .00 .11 .12 .00 .01 .22

4 .515 2.260 .01 .56 .66 .00 .00 .05

5 .436 2.456 .01 .03 .06 .11 .16 .35

6 .317 2.881 .00 .19 .00 .44 .33 .32

7 .176 3.863 .93 .00 .06 .39 .46 .01

a. Dependent Variable: V7
 Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 12.01 25.45 18.50 3.004 36

Residual -21.129 18.883 .000 10.098 36

Std. Predicted Value -2.159 2.315 .000 1.000 36

Std. Residual -1.905 1.702 .000 .910 36

a. Dependent Variable: V7
Interpreting the output

In the table under coefficient the utility of variable 1 representing INTEL micropressor is equal to
-1.299( looking under the column B of the table), similarly the utility of variable 2, representing AMD
microprocessor is equal to 1.804. The utility of third level of microprocessor is not in the table but it is
derieved from the property of this coding, that all the utilities of the given attribute should sum up to 1,
thus utility for NEC microprocessor is 0.505 (-1.299+ 1.804) similarly the utility of variable 3, which
represents clock speed of 3 GHz is is equal to -1.015 and that of clock speed of 2 GHz is +1.015. Similarly
the utility of variable 4, which represents hard disk of 320 GB is equal to 3.366,and that of hard disk of
250 GB is equal to -3.366. Similarly the utility of variable 5 , which represents price of 25,000 is equal to
1.314, and the utility of variable 6 , which represents price of 30,000 is equal to 2.321.similarly utility of
price of 41,000 is –(1.314+2.321)= - 3.635.
To sum up we can say,

Utility for INTEL micropressor is equal to -1.299

Utility for NEC microprocessor is 0.505

Utility for AMD microprocessor is equal to 1.804

Utility for clock speed of 3 GHz is is = -1.015

Utility for speed of 2 GHz is = +1.015

Utility for hard disk of 320 GB is = 3.366

Utility for 250 GB is = -3.366

Utility for price of 25,000 is = 1.314

Utility for price of 30,000 is = 2.321

Utility for price of 41,000 is = - 3.635

Range 0f utility (max-min) of Microprocessors= 1.804 –(-1.299)= 3.103

Range of utility of clock speed =1.015-(-1.015) = 2.03

Range of utility of hard disk = 3.366-(-3.366)= 6.732

Range of utility of price is = 2.321-(3.635)= 5.956

Conclusion

 Hard disk’ utility is the most important attribute for the customer with maximum utility
 Utility of hard disk of 320 GB is maximum in individual category which shows that it is also the
most important factor.
 Price is the second important factor to the customer, followed by the microprocessor and the
clock speed comes last.