MCS 3500 Lecture 8: Midterm

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3500
• Professor: b

Document Summary

80% of product manufacturing costs are incurred during the first 20% of its design (varies with product category) Conjoint analysis is a systematic approach for matching product design with the needs and wants or customers, especially in the early stages of the new product development process. Conjoint analysis is a decomposition approach by providing a series of holistic product- concept. A numerical assessment of the relative importance that customers attach to attributes of a product category. The value (utility) provided to customers by each potential feature (attribute option) of an offering. Identification of product designs that maximize market share or other indices. Should we offer our business travelers more room/ space or a fax machine in their room. Problem with rating scales (scales that determine product attributes) An individual could place the highest score for each variable this doesn"t give the marketer information because the individual didn"t have to make any trade offs.