CONJOINT ANALYSIS ASSIGNMENT: 20 MARKS

DATE: 29th June 2020

Details of the team members

No Name Roll No Program

1 Sourav Guha Ray (Leader) 1952 PGDM6

2 1909 CMBA2Y3
Alolika Dutta Roy
3 1940 PGDM6
Ritika Roy
4 Anik Guin 1912 CMBA2Y3

Instructions:
1. Both questions related to conjoint analysis are to be solved
2. Each team will have max. 4 members
3. Work can be divided among team members
4. Assignment has to be submitted by each team.
5. Teams are expected to adhere to the highest level of professionalism and
ethical behavior while working on the assignment.
6. Plagiarism / unethical practices will result in cancellation of the assignment.
In case assignments of 2 teams are same, assignments of both teams will be
cancelled.
(Q1)CONJOINT ANALYSIS CASE 1
TOYOTA MOTORS is planning to launch a new car in India and is wondering what should
be the best profile of the car / model of the car in order to be successful in Indian market.
You have to find the solution by using the conjoint analysis.
‘Part-worths’, as generated by the conjoint analysis software, are provided for your
reference and use.
You are supposed to do the following:
1. Select the best attributes of the car (minimum 3- maximum 4) for the purpose of
study. Also, explain your reasons for the selection.
2. Select the best levels for those attributes (minimum 2- maximum 3). Also, explain
your reasons for the selection.
3. Create all possible product profiles (based on no of attributes and levels selected by
your team).
4. Calculate the value/ total utility of each profile
5. Select the 3 best profiles / models which Toyota Motors should launch according to
your analysis.
Part-worths: As generated by Conjoint Analysis Software

Engine Type Body Style Color of the Car Price of the Car

Electric Sedan Red $20,000

0.70 0.10 0.46 0.30

Gas Sports Car White $30,000

0.20 0.28 0.19 -0.48

Hybrid SUV Blue $40,000

1.91 -0.41 0.36 -1.05
Conjoint Case-1
1. Selected attributes and the reason for the selection:
A. Engine type
Engine is the heart of a car without which a car cannot work so the type of the
engine is the most important attribute of a car.
B. Body Style
Body style of a car is an important attribute as it represents the mind set behind
the purchase. A person chooses the style of the car depending upon the number of
members of his or her family.
C. Colour of the Car
Colour of a car defines the glory and glamour of a car. It varies from person to
person.
2. Selected Levels and the reason for the selection
Selected levels for attribute Engine type
i. Electric: Electric engine is easy to use as it runs with electricity not
diesel or petrol. It is eco- friendly and budget friendly so people now-a-
days prefer electric engine.
ii. Hybrid: Hybrid engine type is a mixer of gas and electric both. It has an
internal combustion engine and an electric motor, which uses energy,
stored in batteries and can easily be switched as needed.
Selected levels for attribute body style
i. Sedan: A sedan is a passenger car and has optimum luggage place
people from nuclear family usually prefer Sedan.
ii. SUV: Sport utility vehicle is a car that carries as large as 8 or more
people. It is good for long drive and also used in off loading. It is suitable
for transporting and can carry load.
Selected levels for attribute colour of the car
i. Red: Red is a symbol of glory and youths mostly prefer attractive colour
like red.
ii. Blue: Blue is the royal colour and preferred by youngsters.
3. Possible product profiles that can be created by the attributes and levels:
Maximum Number of Profiles = Number of Levels Attribute 1 * Number of Levels Attribute 2 *
Number of Levels Attribute 3 * Number of Levels Attribute 3
We have Number of levels and attributes
= Level ^ Number of attribute
= 2^3
=8
Created 8 Profiles are as follows:
➢ Electric-Sedan- Red
➢ Electric- SUV- Red
➢ Electric-Sedan-Blue
➢ Electric- SUV- Blue
➢ Hybrid- Sedan- Red
➢ Hybrid-SUV-Red
➢ Hybrid-Sedan-Blue
➢ Hybrid-SUV-Blue
4. Total value of each profile:
1) Electric-Sedan- Red
0.70+0.10+0.46=1.26
 2) Electric- SUV- Red
0.70+ (-0.41) +0.46=0.75
3) Electric-Sedan-Blue
0.70+0.10+0.36= 1.16
4) Electric- SUV- Blue
0.70+ (-0.41) +0.36= 0.65
5) Hybrid- Sedan- Red
1.91+0.10+0.46= 2.47
6) Hybrid-SUV-Red
1.91+ (-0.41) +0.46=1.96
7) Hybrid-Sedan-Blue
1.91+0.10+0.36= 2.37
8) Hybrid-SUV-Blue
1.91+ (-0.41) +0.36=1.86
5. According to our analysis the 3 best profiles that Toyota Motors should launch are as
following from maximum to minimum:
1. Hybrid- Sedan- Red having total utility value 2.47
2. Hybrid-Sedan-Blue having total utility value 2.37
3. Hybrid-SUV-Red having total utility value 1.96
Q.2 CONJOINT ANALYSIS CASE 2
OBL (Reference: Shodh Case discussed in the class)is planning to launch economy housing
project in South Indian city of Bangalore and Mysore and is wondering what should be the
best profile of the flats in the housing project to be developed in order to be successful.
You have to find the solution by using the conjoint analysis.
‘Partworths’, as generated by the conjoint analysis software, are provided for your reference
and use.
You are supposed to do the following:
1. Select the best attributes of the flat (minimum 3- maximum 4) for the purpose of
study. Also, explain your reasons for the selection.
2. Select the best levels for those attributes (minimum 2- maximum 3). Also, explain
your reasons for the selection.
3. Create all possible product profiles (based on no of attributes and levels selected by
your team).
4. Calculate the value/ total utility of each profile/ flat type
5. Select the 3 best profiles / models/ flat types which OBL should launch according to
your analysis.
Partworths: As generated by Conjoint Analysis Software
Park
Flat Size Facing Amenities Price of the Flat

3 BHK Yes Yes $20,000

0.30 0.60 0.20 0.30

2 BHK No No $25,000
1.90 0.30 0.80 -0.48

1 BHK $30,000
1.20 -1.05
Conjoint Case- 2

1. Selected attributes of the flat

➢ Flat size: Flat size defines the preference of customer and also plays an important
role to determine price.
➢ Amenities: Amenities describe the feature of a flat and justify the price.
➢ Price of the Flat: People choose flats depending on the price that matches their
budget.
2. Selected Levels of each attribute:
For the attribute flat size
I. 3BHK: 3BHK suitable for big families with kids and guest room.
II. 2BHK: 2BHK suitable for medium sized families and also budget friendly.
For the attribute amenities attribute
I. Yes: Atmosphere is important for the people with big families and kids.
II. No: Mainly bachelors or people who live alone do not give priority to the
amenities.
For the attribute of price of flat
I. $20,000: Price depends on choice, income, budget, and preference of
people.
II. $25,000: Price depends on choice, income, budget, and preference of
people.
3. Possible product profiles that can be created by the attributes and levels:
Maximum Number of Profiles = Number of Levels Attribute 1 * Number of Levels Attribute 2 *
Number of Levels Attribute 3 * Number of Levels Attribute 3
We have Number of levels and attributes
= Level ^ Number of attribute
= 2^3
=8
Created 8 Profiles are as follows:
➢ 3BHK-Yes-$20,000
➢ 3BHK-Yes-$25,000
➢ 3BHK-No-$20,000
➢ 3BHK-No-$25,000
➢ 2BHK-Yes-$20,000
➢ 2BHK-Yes-$25,000
➢ 2BHK-No-$20,000
➢ 2BHK-No-$25,000
4. Total value of each profile:

➢ 3BHK-Yes-$20,000
0.30+0.20+0.30= 0.80
➢ 3BHK-Yes-$25,000
0.30+0.20+ (-0.48) = 0.02
➢ 3BHK-No-$20,000
0.30+0.80+0.30= 1.40
➢ 3BHK-No-$25,000
0.30+0.80+ (-0.48) = 0.62
➢ 2BHK-Yes-$20,000
1.90+0.20+0.30= 2.40
➢ 2BHK-Yes-$25,000
 1.90+0.20+ (-0.48) = 1.62
➢ 2BHK-No-$20,000
➢ 1.90+0.80+0.30= 3.00
➢ 2BHK-No-$25,000
1.90+0.80+ (-0.48) = 2.22

5. According to our analysis the 3 best profiles or flat types which OBL should
launch are as following from maximum to minimum:
1. 2BHK-No-$20,000 with total value of 3.00
2. 2BHK-Yes-$20,000 with total value of 2.40
3. 2BHK-No-$25000 with total value of 1.62
CASE ASSIGNMENT – 10 MARKS (ADVERTISING EXPERIMENTS AT RESTAURANT
GRADES)
Your case analysis should include the following:

A. SYNOPSIS OF THE CASE (SUMMARY) and the Dilemma/ issue / problem - 5

MARKS
B. EXPERIMENTAL DESIGN – 5 MARKS
C. DATA ANALYSIS – 5 MARKS
D. RECOMMENDATION / SOLUTION
WHAT SHOULD SHIRLEY DO? She should stick to the current AD or switch to the
alternative AD? Explain Why? (5 marks)
Solution:
Advertising Experiments at Restaurant Grades (H/B/C)

A. SYNOPSIS OF THE CASE

▪ Restaurant-Grades is a restaurant review platform that allows users to review
different websites as well as view restaurants. People can easily decide the
restaurant as per choice and order from them.
▪ This whole thing generates its revenue from selling ads through sales team.
▪ Through cold calling sales team try to convince restaurants to advertise in their
platform
▪ RG provides guarantee to show an add 1000 times in a month at the cost of
$300/month.
▪ The current search algorithm from RG shows ads for restaurants that are
triggered by type of cuisine within a user search radius of 0.5 m.
▪ They develop a new kind of algorithm which shows ads when a user searches
for a restaurant and selects two restaurants with similar ratings and hours.
▪ RG selects 30,000 restaurants at random and divides them into three groups.
Each group consisting 10,000 restaurants.
i. The first group of restaurants receive free ads using the current
advertising approach
ii. Second group of restaurants receive ads in alternative designs.
iii. Third group of restaurants were not informed about the experiment.
B. Experimental Design:
30,000 samples were taken in three groups denoted by 0, 1, 2.

Treatment Page views Calls Reservations Business Restaurant

ID type
0
1
2
Results were taken as,

Treatment Average page Average Average no of

group views calls reservation
0
1
2
 C. Data analysis:
Restaurant-Grades is founded by Shirley a critic. Restaurant-Grades is a restaurant review
platform. The highest revenue generated by Restaurant-Grades is by selling ads through its
sales team. Shirley decided to run a large-scale randomized control trail. For experiment
critics team randomly selected 30,000 restaurants that were active on their platform. They
divided the 30,000 restaurants into three parts.

1. 10,000 Restaurants: Chosen of these restaurants were randomly chosen to receive free
ads using the current advertising approach.
2. 10,000 Restaurants: Chosen of these restaurants were randomly selected to receive the
alternatively designed ads.
3. 10,000 Restaurants: Restaurants received no advertisements.
D. Recommendations:
Observation that can be made from the case study:

Treatment avg avg no of

group avg pageviews calls reservation
0 599.57 40.07 39.93
1 690.40 44.02 40.10
2 403.72 36.13 35.30

➢ Observation form this chart is there are three types of treatment group 0, 1, 2.
➢ For 0 Average page views, average calls and average no of reservation are respectively
599.57, 40.07, 39.93.
➢ For 1 Average page views, average calls and average no of reservation are respectively
690.40, 44.02, 40.10.
➢ For 2 Average page views, average calls and average no of reservation are respectively
403.72, 36.13, 35.03.

T-0 4000 2398285 160277 159700

T-1 4000 2761587 176085 160404
T-2 22000 8881940 794864 776517

Form this observation we can come to a point that Shirley should stick to the current ad
because this more familiar to the user of the RG. Through this current ad they can generate
more revenue.