Deck 11: Multivariate Methods of Marketing Reseach Ii: Conjoint Analysis and Multidimensional Scaling

Question 1

An orthogonal conjunct design means that what is observed for one variable is unrelated to what is observed for any of the others.

Answer 1

True
An orthogonal design is one in which,when several quantities have to be measured in an experiment,manipulations of one quantity will not affect measurements of another.

Question 2

The virtual of the perceptual map produced by MDS is that it is always a 2-dimensional image that can be quickly understood by researchers and that is not burdened with quantitative information.

Answer 2

False
MDS can also produce a 3-dimensional image.It preserves and illustrates the quantitative information about the relationships.If humans were capable of visually processing more than 3 dimensions,it could produce those as well.

Question 3

In adaptive conjoint,the research objectives are adapted on the fly to market changes.

Answer 3

False
In adaptive conjoint,a respondent's answers to prior questions are used to determine subsequent questions,to help best use respondents' time and obtain superior statistical estimates.

Question 4

NOTE: Refer to this output regarding customer preferences for light bulbs relative to brightness and bulb life to answer the following questions.

The output above shows that Buyer A generally values brightness more than bulb life,whereas Buyer B generally has the opposite preference.

Question 5

It is important to use a "none" or "no choice" option in all choice-based conjoint analysis.

Question 6

Conjoint is very useful for predicting market share of an optimal product.

Question 7

NOTE: Refer to this output regarding customer preferences for light bulbs relative to brightness and bulb life to answer the following questions.

The preferences expressed in the output above are consistent and do not show the customers making any trade-offs between brightness and bulb life.

Question 8

An advantage of test markets is that products can be adjusted on the fly if targets are not being met.

Question 9

The following set of part worths reproduces the rankings of Buyer A above:
100 watts: 100
75 watts: 60
60 watts: 50
2500 hours: 50
2000 hours: 25
15 hours: 0

Question 10

To determine the optimal levels of attributes for a product,researchers should use multidimensional scaling.

Question 11

NOTE: Refer to this output regarding customer preferences for light bulbs relative to brightness and bulb life to answer the following questions.

The output above includes the relative importances of the attributes of brightness and bulb life and the relative importances of the various levels of these attributes.

Question 12

In real life,consumers generally decide their preferred brands by mentally ranking their options.

Question 13

Conjoint allows researchers to determine how a product should be priced.

Question 14

Conjoint analysis is a set of methods designed to understand and quantify trade-offs.

Question 15

The set of utility values for Buyer A given in question #10 is the unique solution to the rankings given.

Question 16

The overall goal of conjoint analysis is to measure the "part worths" or "importance utilities" using information provided by respondents,such as rankings,ratings,or choices.

Question 17

In order to interpret the dimensions created by MDS,researchers must overlay external information.

Question 18

One technique that can be used with an ordinal level dependent variable and nominally-scaled independent variables is conjoint measurement.

Question 19

In interdependence methods,like conjoint and factor analyses,one or more variables are designated as being predicted by (dependent on)a set of independent variables.

Question 20

Multidimensional scaling summarizes data about associations between a fixed set of objects by determining the minimum "dimensionality" required to represent the objects' interrelationships and the position of each object on each dimension.

Question 21

By using _______________,a large conjoint design with 15,000 possible profiles can be reduced down to just 25.

A) correlations
B) factors from factor analysis
C) orthogonal designs
D) clusters from cluster analysis

Question 22

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

Given the part worths above,which lightbulb will be preferred in the market,a "super bright" bulb that is 100 watts but burns out in 1500 hours and sells for $2.50,or a "long life" bulb that lasts 2500 hours,is 75 watts and sells for $3.00?

A) the super bright bulb
B) the long life bulb
C) The two bulbs will be equally preferred.
D) There is no way of determining this without more data.

Question 23

A stress level of over 0.2 may indicate that a higher-dimensional solution may be called for.

Question 24

Conjoint analysis can be used to answer all of the following questions except:

A) How much are specific attributes of a product or service valued?
B) What levels of each attribute should the product or service have?
C) How should a product or service be priced?
D) What brands do consumers tend to view as being similar?

Question 25

Stress in MDS is a goodness-of-fit measure between the input rank order and the output.

Question 26

Fully metric MDS methods require interval- or ratio-scaled input measures and generate a set of relationships among objects that is also interval or ratio.

Question 27

When using _______________,a respondent's prior choices or responses are used to determine future comparisons.

A) choice-based profiles
B) rankings
C) adaptive conjoint
D) the k-means method

Question 28

The research method that is used to understand and quantify trade-offs is

A) factor analysis
B) discriminant analysis
C) conjoint analysis
D) multidimensional scaling

Question 29

A valenced attribute is

A) an attribute with many, usually greater than 7, levels
B) an attribute where some levels are universally preferred
C) an attribute with one or more undetermined levels
D) a constructed attribute that mixes one or more levels of other attributes

Question 30

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

Given the part worths above,what is the utility of a 60-watt bulb that lasts 2000 hours and costs $2.00?

A) 0
B) 20
C) 45
D) More information is needed to determine this.

Question 31

In a nonadaptive conjoint program,even when all the data are collected,

A) researchers don't know if it will match the information needs of the project
B) researchers don't know if these respondents are the best respondents to query
C) researchers have no guarantee of sufficiently accurate results
D) all of the above

Question 32

In conjoint analysis,_______________ allows researchers to offer a subset rather than all of the possible combinations when looking a trade-offs on a number of product attributes.

A) the k-means method
B) orthogonal designs
C) adaptive conjoint
D) choice-based conjoint

Question 33

For k attributes,k-1 trade-off matrices are produce in what type of conjoint study?

A) k-means conjoint
B) adaptive conjoint
C) ranking data
D) choice-based conjunct

Question 34

MDS starts being more reliable,in terms of unambiguous interpretation of the resulting spatial dimensions,for large numbers of object comparisons.

Question 35

In adaptive conjoint,if the first few conjoint responses indicate that a respondent is insensitive to some aspect of a product,

A) he or she should be questioned on that attribute in greater detail to determine why
B) he or she should be questioned on that attribute in greater detail to achieve more finely-grained data
C) he or she should be questioned on trade-offs more relevant to that person
D) he or she should be questioned exactly as planned in the research design

Question 36

The set of conjoint analysis methods used by marketing professionals include of all of the following except

A) k-means conjoint
B) orthogonal designs
C) adaptive conjoint
D) choice-based conjoint

Question 37

Which research method is considered excellent as a premarket testing methodology?

A) discriminant analysis
B) cluster analysis
C) conjoint analysis
D) multidimensional scaling

Question 38

Advantages of adaptive conjoint include all of the following except

A) it allows one to quickly zero in on accurate utility measurements for a particular respondent
B) the researcher can specify exactly how much accuracy is required
C) it is especially suitable if there are many attribute levels
D) adaptive conjoint routines are included in most general statistics programs

Question 39

Nonmetric multidimensional scaling takes rank-ordered input measures and generates a set of relationships among the objects which is ordinally-scaled.

Question 40

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

Given the part worths above,should the company produce the long life bulb,the super bright bulb (both of which are described in question #5),or both of the bulbs?

A) the long life bulb
B) the super bright bulb
C) both of the bulbs
D) The answer cannot be determined from this information.

Question 41

Disadvantages of adaptive conjoint include all of the following except

A) greater costs
B) it sometimes requires dedicated lab facilities
C) the number of attribute levels that it can handle is limited
D) greater complexity

Question 42

In an MDS routine,for n objects,_______________ possible pair-wise comparisons are used to estimate 2n coordinates in two-dimensional space.

A) n(n-1)/2
B) n²-1
C) n!
D) cannot be determined

Question 43

MDS will always provide as faithful a representation of _______________ as possible.

A) relative similarity or distance
B) relative attribute levels
C) absolute map positions
D) absolute attribute levels

Question 44

In choice-based conjunct,descriptions of highly technical products should include

A) an explanation of the metrics used to quantify the attribute
B) the precise technical specifications
C) an interpretative descriptor of the technical specifications
D) all of the above

Question 45

To determine the optimal product from conjoint results,researchers

A) choose the levels of each attribute with the highest part worths, including the price attribute
B) incorporate information about production and distribution costs with the conjoint results to determine product attributes and price that result in profit
C) fit continuous curves through the part worths, including price, and use the levels at the highest points of these curves
D) none of the above

Question 46

Sales and share are affected by all of the following except

A) promotion
B) customer expertise and knowledge
C) distribution
D) conjoint results

Question 47

Multidimensional scaling

A) relies on a prior decision about which dimensions are important
B) depicts categories and brands in terms of attributes displayed on a perceptual map
C) requires collection of data on each attribute of similarity or difference
D) all of the above
E) none of the above

Question 48

In choice-based conjunct,if an important attribute is omitted from the study,

A) respondents may make inferences about the missing attribute
B) respondents may become increasingly uncooperative with the researchers
C) respondents may show a preference for higher price levels
D) both a and c

Question 49

Advantages of choice-based conjunct include all of the following except

A) it is dramatically more "real world" than other conjoint tasks
B) consumers are accustomed to judging and calibrating their own preferences
C) it is transparent and easy for respondents
D) it can be highly efficient and handling multiple attributes and product profiles simultaneously

Question 50

Until _______________ models were developed,no statistical methods rigorously measured part worths based on choice data.This made choice-based conjunct possible.

A) McFadden
B) discrete choice
C) Heckman
D) continuous choice

Question 51

What _______________ is designed to do is estimate what drives purchases by calibrating the sources and strengths of consumers' preferences.

A) multidimensional scaling
B) conjoint analysis
C) discriminant analysis
D) factor analysis

Question 52

A stress score of 0.1 in a multidimensional scaling is considered

A) poor
B) fair
C) good
D) excellent

Question 53

An MDS routine

A) operates through a set of formulas, as in regression, that yield the best fit
B) always attempts to maximize the stress level of the distance data
C) is iterative, determining a good initial guess and continuing to derive better estimates
D) none of the above

Question 54

Typical applications of conjoint include all of the following managerial questions except:

A) How does the choice probability of this product change if we change its appearance and ad message?
B) What demographics are shared by the target segment for this product?
C) Should we bring out a single product or an entire line?
D) How should we price a new version of our product with upgraded features?

Question 55

_______________ summarizes data about associations between a fixed set of objects to reveal relationships between them,such as brands in a particular class.

A) Multidimensional scaling
B) Discriminant analysis
C) Cluster analysis
D) Segmentation analysis

Question 56

When depicting a higher-dimensional object in lower-dimensional space,

A) this is immediately apparent when one looks at the resultant map
B) severe distortion is possible
C) external information cannot be overlain on the resultant map
D) a perfectly accurate rendering results

Question 57

A poor stress level in an MDS output indicates

A) considerable disparity between the derived map and the original distance data
B) that the researchers have high cortisol levels
C) considerable similarity between the derived map and the original distance data
D) none of the above

Question 58

Conjoint helps predict all of the following except

A) consumer preference
B) optimal product attributes
C) market share
D) optimal price

Question 59

To interpret the dimensions in MDS,each of the dimensions

A) is left to the judgment of the researchers
B) has its numbers correlated with external data that has been previously shown to relate to particular dimension
C) has its numbers correlated with any external data
D) none of the above

Question 60

In _______________,respondents are given a set of items and asked which they most prefer,without any rankings,ratings,or comparisons.

A) choice-based conjoint
B) profiling
C) adaptive conjoint
D) ranking

Question 61

All of the following are among the most frequent applications of MDS except

A) identifying products that are viewed as substitutes for one another
B) identifying the underlying structure of variables
C) identifying salient product attributes perceived by buyers in a market
D) exposing the gaps in a market that can support a new product venture

Question 62

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

To best emulate the way people evaluate product options in the actual market,what method should be used to estimate the part worths of those options?

Question 63

Discuss the uses of multidimensional scaling.

Question 64

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

Given the part worths above,what is the utility for a 75-watt bulb that burns for 1500 hours and costs $2.50?

Question 65

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

What method should be used to generate a rank order of each object along each dimension,given rank-ordered input measures.

Question 66

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

Which bulb would be preferred by more customers,a 100-watt bulb that burns for 1500 hours and cost $3.00 or a 75-watt bulb that burns for 2000 hours and costs $2.50?

Question 67

Discuss the advantage of using the choice-based conjoint over the other types of conjoint analysis.

Question 68

What does an adaptive conjoint program do?

Question 69

_______________ multidimensional scaling methods take rank-ordered input measures and generates a set of relationships among objects that is interval.

A) Fully metric
B) Fully nonmetric
C) Metric
D) Nonmetric

Question 70

NOTE: Refer to this output regarding part worths for brightness, bulb life, and price in light bulbs to answer the following questions.

What kind of design is generated by specialized routines in statistical programs to dramatically reduce the number of profiles required for a conjoint study?

Question 71

_______________ multidimensional scaling requires interval- or ratio-scaled input measures and generates a set of relationships among objects that is also interval or ratio.

A) Fully metric
B) Fully nonmetric
C) Metric
D) Nonmetric

Question 72

Discuss some of the managerial questions where conjoint analysis is applied in marketing research.

Question 73

The axes of an MDS solution

A) are determined uniquely from the data by the MDS routine
B) have a special, privileged meaning
C) can be rotated and/or flipped and reinterpreted
D) are pre-determined by researchers before the data is entered

Question 74

Discuss the basic steps in a conjoint analysis.

Question 75

_______________ multidimensional scaling takes rank-ordered input measures and generates the rank order of each object on each dimension.

A) Fully metric
B) Fully nonmetric
C) Metric
D) Nonmetric