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Burnside Marketing Research

Satisfactory Essays

Burnside Marketing Research conducted a study for Baker Foods on some designs for a new dry cereal. Three attributes were found to be most influential in determining which cereal had the best taste: ratio of wheat to corn in the cereal flake, type of sweetener (sugar, honey, or artificial), and the presence or absence of flavor bits. Seven children participated in taste tests and provided the following part-worths for the attributes. | |Wheat/ Corn | |Sweetener |Flavor Bits | |Child |Low |High |Sugar |Honey |Artificial |Present |Absent | |1 |15 |35 |30 |40 |25 |15 |9 | |2 |30 |20 |40 |35 |35 |8 …show more content…

Clearly, the Whect/Corn ratio can either be High or Low, but not both, so: [pic] Also, only one of the sweeteners can be used: [pic] Finally, flavor bits can either be present or absent: [pic] Now, what about x1, x2, … ? We can’t just choose x1 = 1 and assume that the children preferred the new cereal. Instead, if we want x1 to be equal to 1 (that is, if we want child 1 to choose the new cereal), it must happen that the utility he derives from the new cereal is

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