How much more would mr poon willing to pay for apple brand

Assignment Help Finance Basics

Reference no: EM132179354

Problem - Google is interested in understanding consumers' preferences for Nexus 10 over iPad, and has conducted a conjoint analysis. It considered three features of a tablet: (1) brand (Google vs. Apple), (2) storage size (32GB vs. 64GB), and (3) price ($400 vs. $500).

Here is a preference ranking of one of the respondents, Mr. Poon. (8: best, 1: worst)

	Price: $400		Price: $500
	Storage: 32 GB	Storage: 64 GB	Storage: 32 GB	Storage: 64 GB
Brand: Google	4	6	1	2
Brand: Apple	5	8	3	7

Using the averaging method we discussed in class, answer the following questions.

(a) From the preference ranking above, it is clear that Mr. Poon prefers Apple to Google. How much more would Mr. Poon be willing to pay for Apple brand over Google brand?

(b) Suppose that Apple iPad with 64GB storage is priced at $600, and Mr. Poon is willing to buy this iPad. How much would Mr. Poon be willing to pay for Google Nexus 10 with 32GB?

Reference no: EM132179354

Questions Cloud

In what ways could the given policy be criticised : During the Christmas shopping period of 1989 British Rail received some criticism when it increased its fares into certain cities on Saturday mornings.

Determine key components of the firm strategy of pepsico : Determine the Key components of the firm's strategy of PepsiCo. What are the critical resources and capabilities that enable the firm's value proposition

Customer focused marketing leads to greater roi or product : Customer focused marketing leads to greater ROI or product focused marketing leads to greater ROI

Why do other higher education institutions insist : Why do universities and other higher education institutions insist on certain N level grades as an entry requirement? Could the student loan scheme be described

How much more would mr poon willing to pay for apple brand : From the preference ranking above, it is clear that Mr. Poon prefers Apple to Google. How much more would Mr. Poon be willing to pay for Apple brand

Why might the information help to lead to the conclusion : The Chancellor of the Exchequer is advised that the price elasticity of demand for milk is 12 for low income groups and 023 for high income groups.

Explain the apparent contradiction in detail : An increase in price reduces quantity demanded, while a fall in demand reduces price; A now economist might find this statement contradictory.

What forces lie behind trend : MNCs tend to move more and more towards a sprinkler strategy in terms of their global launch timing decisions. What forces lie behind this trend?

Calculate the npv of continuing to operate the mine : Calculate the NPV of continuing to operate the mine by working your way backwards through the tree and taking into account the option to abandon

User Account

All Pages