GAVER CMU Exam 2 Questions Correctly Answered.

GAVER CMU Exam 2 Questions Correctly Answered. What information does conjoint analysis deliver? - CORRECT ANSWER o Importance of Attributes o Preference levels How do we interpret the results for attribute importance? - CORRECT ANSWER o More points = More importance o Share 100 points How do we interpret the results for preferences of different levels? - CORRECT ANSWER o 0 = Average o Positive # = Above Average o Negative # = Below Average What is more advanced analysis for conjoint analysis? - CORRECT ANSWER o Segmentation of data o Market simulation of the data Be able to explain market simulations to a 5th grader. - CORRECT ANSWER o Brings data to life: What if we did this, what would happen? o Need conjoint analysis data to do o Bring all customers in the room, would you buy if... How does Market Simulations settle boardroom debates? - CORRECT ANSWER o Shows which new idea is the best outcome What do I mean by what-if analysis? - CORRECT ANSWER o What if we did this... What would happen? o Shows good, better best What are important outcomes used in a market simulation? - CORRECT ANSWER o Market Share o Cost o Profit o Revenue What are advantages of using a market simulation? - CORRECT ANSWER o Learn from mistakes before you actually make them Mathematically, how do market simulations work? Are simulations built on averages or choices? Are they built on attribute importance or preference levels? - CORRECT ANSWER o Simulations are not built on averages o Built on individual choices o Based off of preference scores o (Light beer) 1.2 + ($7) 2 = 3.2 vs. (Amber beer) 5.5 + ($13) 1 = 6.5 What are typical applications of a market simulation? - CORRECT ANSWER o Price sensitivity ( what if we lowered the price by $2) o New Features ( What if we added a complimentary glass) o Competitive Moves (what if our competitor lowered prices by $2) o Brand New Product (What if we created a new dark beer and sold it for $7) What are the assumptions of a market simulation? - CORRECT ANSWER 1. All attributes that affect buyer choices in the real world are accounted for 2. Each product has equal availability 3. Respondants are aware of all products 4. Products reach long range equilibriums 5. Equal effectiveness of sales force and advertising 6. No Out of Stock conditions Do preference shares from a simulation match real world market share? - CORRECT ANSWER o Shares of preference don't always match real world market shares o Conjoint simulator assumptions usually don't hold true in the real world Understand and be able to explain maximum difference scaling to a 5th grader. - CORRECT ANSWER o No variation = We "know Nothing" o Also know as best-worst scaling, is used for measuring importance, agreement, etc w/in a list of items o Best method due to excellent variation o Most important vs. least important on a list of attributes Why cant we just use stated importance ratings? - CORRECT ANSWER No variation What is the biggest advantage of using maximum difference scaling? - CORRECT ANSWER o Excellent variation o Improved predictive capabilities o Allows for need based segmentation From the customer perspective, what does a maximum difference scaling survey look like? - CORRECT ANSWER Several questions of Most important vs. least important on a list of attributes What is maximum difference scaling related to and what software do we use to create this type of survey? - CORRECT ANSWER o Conjoint analysis o Sawtooth How many maximum difference scaling questions are usually asked? - CORRECT ANSWER o About 10 questions of around 5 attributes How do we interpret the results from maximum difference scaling? - CORRECT ANSWER o All attribute scores sum to 100. o Higher Number = More important What are common applications of maximum difference scaling? - CORRECT ANSWER o Replace most "interval scaled" questions o Need "great data" o Need Excellent Variation o Need Need-based segments o Brand equity, brand positioning & statements What is the basic format of a maximum difference scaling survey? - CORRECT ANSWER o Intro o Priming & classification o Max Diff scaling questions o Demographic types of questions o Thanks! How and why do we measure different situations in maximum difference scaling? - CORRECT ANSWER Most and Least important to eliminate variance Be able to analyze maximum difference scaling data in JASPer - CORRECT ANSWER o Focused on mean scores Is CX research focused on customer acquisition or customer retention? - CORRECT ANSWER o Customer Retention What other names are used for CX surveys? What does CX stand for? - CORRECT ANSWER o Customer experience o Customer satisfaction, Customer value, customer loyalty Why is CX important? What is the relationship to financial performance? - CORRECT ANSWER o 5x more expensive to acquire than retain o 5% increase in CR = 25%-85% increase in profitability people who give 9 & 10s on NPS buy 2.5 times more products