1

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!

2

Question 1 (30 points)
Focus on any product or service.
(1a) Describe the product or service in terms of benefits to the customer.

Ans:-Product knowledge is an essential sales skill. Understanding your products' features
allows you to present their benefits accurately and persuasively. Customers respond to
enthusiastic sales staff who are passionate about their products and eager to share the benefits
with them.
The possible benefits to the customer are :-

It will meet their needs and save you time and money.
The customer is receiving quality and value for money
Customer is assured that if it needs maintenance, it will be taken care off.

Ex:- Move in sync (a tool used for logistics within corporate employees) as a
product is of benefit to the customer in various ways and covers all the above
things mentioned..

It has the ability to access data anywhere in the world which could keep you closer to
the user at any point of time.
It has special features for womens safety.
Paperless bills
Electronic trip sheet
Route optimization and cab allocation.
Tracking and delay prediction.






(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

Ans:-
3

Survey:-
Time taken for travel to office.
30-45 min
45-1 hour
1-1.5 hour
1.5 to 2 hour
Difficulty in explaining route to cab drivers ?
Easy
Difficult
V.difficult
Impossible
Routing of cab
Correct
Incorrect
Mostly correct
Mostly wrong
Number of passengers.
Type of cab
Time taken to get a cab from office.
Login time
Logout time
Pick up point
Drop point
How prior a cab driver should call before reaching pickup point.
Difficulty in locating cab at office for drop ?

4


5

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



Conjoint Study Design
Attributes and attribute levels of the Conjoint study.
Attributes / Levels Level 1 Level 2 Level 3
Price 200 rs 400 rs 600 rs
Topping Pineapple Veggie Sausage
Amount of cheese 2 oz 6 oz 8 oz
Bundles
Attribute levels for a full-profile, fractional design Conjoint study
Attributes / Bundles Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8 Bundle 9
Price 200 rs 200 rs 200 rs 400 rs 400 rs 400 rs 600 rs 600 rs 600 rs
Topping Pineapple Veggie Sausage Pineapple Veggie Sausage Pineapple Veggie Sausage
Amount of cheese 2 oz 6 oz 8 oz 6 oz 8 oz 2 oz 8 oz 2 oz 6 oz
Respondents' Ratings
Respondents' ratings for each bundle (use consistent scale, e.g., between 0 and 100)
Respondents / Ratings Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8 Bundle 9
Respondent 1 19 20 73 54 32 56 34 12 21
Respondent 2 30 30 12 21 45 23 54 30 12
Respondent 3 40 52 34 25 45 23 54 43 89
Respondent 4 50 35 54 32 56 34 43 76 25
Conjoint Study Design
Attributes and attribute levels of the Conjoint study.
Attributes / Levels Level 1 Level 2 Level 3
Price 200 rs 400 rs 600 rs
Topping Pineapple Veggie Sausage
Amount of cheese 2 oz 6 oz 8 oz
Respondents' Preference Partworths
Respondents' preference partworths. The most preferred profiles sum up to 100, the least preferred to 0.
Respondents /
Attributes and Levels
200 rs 400 rs 600 rs Pineapple Veggie Sausage 2 oz 6 oz 8 oz
Respondent 1 21 35 0 20 0 40 0 4 24
Respondent 2 0 13 18 45 45 0 15 0 37
Respondent 3 18 0 52 0 12 15 0 33 15
Respondent 4 12 0 15 8 37 0 47 0 42
12.75 12 21.25 18.25 23.5 13.75 15.5 9.25 29.5
6



0%
20%
40%
60%
80%
100%
120%
Aloha Special
Actual vs. Predicted Market Shares
Actual Market Shares
Predicted Market Shares
7



Conjoint Study Design
Attributes and attribute levels of the Conjoint study.
Attributes / Levels Level 1 Level 2 Level 3
Price 200 rs 400 rs 600 rs
Topping Pineapple Veggie Sausage
Amount of cheese 2 oz 6 oz 8 oz
Market Share Simulations
Market share predictions for different scenarios, using the First-Choice Rule.
Scenario / Product profiles Aloha Special
Actual market shares 100%
Predicted market shares 75%
Existing Product Profiles
Labels and attribute levels for each existing product profile that already exists in the market.
Attributes / Existing Product
Profiles
Aloha Special
Price 400 rs
Topping Pineapple
Amount of cheese 2 oz
8







9

(2b) Explain/describe your results (i.e. the partworth utility graphs in above question),
drawing relevant insights for each attribute.

10

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:
Ans:- A point added to the plane or to space to eliminate special cases.

(3b) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Point?
Ans. A company should look for space that is currently un occupied by competitors and that has a
high concentration of consumer desire.
Combination of products characteristic.




11

(3c) Define Ideal Vector(or Preference Vector)in 1 sentence:
Ans:- A vector in a joint space map whose angle represents the relative importance of the two
dimensions (factors) as perceived by the market or by individual market segments.



(3d) What specific steps would you take in Perceptual Mapping analysis to get an Ideal
Vector (or Preference Vector)?
Position new products with respect to existing product for an ideal vector.
Ideal vector can be obtained by figuring out how customers look for brand.
Brands target segment see as our closest competitor.


12

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?

Conduct a conjoint analysis exercise with your target population and include all relevant
attributes and levels so that you can model existing products and proposed enhancements.
Make sure that you are testing a range of attributes and levels so that you can model both
your products and your key competitors products.
Once your market simulator is built, set up a competitive set against which you will model
your product.
Place your product at its baseline configuration in this competitive set and estimate share of
preference.
Improve your product by adding the feature of interest (this is the feature for which we
want to understand the monetary value) and run this product against the same competitive
set.
Raise the price of your improved product until the share of preference returns from its
elevated level back to its baseline level.
This difference in price is the incremental value of the feature.