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Assignment 3: Forte Hotel Design

ROOM TYPE Small Suite Large Room Office Room

BUSINESS AMENITIES
Web Access Speaker Phone Fax

EXTRAS Shoe Shine Videotape Library Fruit and Cheese Basket Newspaper

LEISURE FACILITIES Exercise Room Swimming Pool Small Exercise Room+Small Pool

RESTAURANT DELIVERY Yes No

Assignment 3
Run Conjoint Analysis Tutorial, for your learning (not for Assignment grade).

Read Forte Hotel Design Case; do not answer questions listed at end of the case. Instead, answer the following: Question 1: Estimate and Chart your part worths for each attribute. Question 2: Chart the average part worths (include yours and others already estimated in the software). Question 3: Predict Market Share for every existing hotel. Question 4: Estimate percentage change in market shares for every existing hotel, if each of the proposed new hotels entered the market.

Conjoint Study Design


Attributes and attribute levels of the Conjoint study. Level 1 Level 2 Attributes / Levels Room Bus Amenities Leisure Extras Rest Delivery Small Suite Internet access Exercise room Shoe shine Yes Large Room Speaker phone Pool Tape library No Level 3 Room Office Room fax Exercise room + Pool Fruit and cheese Newspaper Level 4

Bundles
Attribute levels for a full-profile, fractional design Conjoint study Attributes / Bundles Bundle 1 Bundle 2 Bundle 3 Room Bus Amenities Leisure Extras Rest Delivery Small Suite Internet access Exercise room Shoe shine Yes Large Room Speaker phone Exercise room + Pool Shoe shine No Room Office Room fax Pool Shoe shine Yes Bundle 4 Large Room Speaker phone Pool Shoe shine No Bundle 5 Small Suite Speaker phone Pool Tape library Yes Bundle 6 Large Room Internet access Pool Tape library No

Respondents' Ratings
Respondents' ratings for each bundle (use consistent scale, e.g., between 0 and 100) Respondents / Ratings Bundle 1 Bundle 2 Bundle 3 Bundle 4 Respondent 1 Bundle 5 Bundle 6

Question 1: Estimate and Chart your part worths for each attribute

Click on Programs Choose Marketing Engineering Go to Cases and Exercises Go to Forte Hotel Design (Conjoint) Go to Fort Hotel Data (Conjoint 1, Ratings)

Make Number of Respondents= 1

Click OK

Input your ratings

Go to MEXL, Conjoint, Estimate Part Worths

Your part worths have been estimated.

Chart your part worths for each attribute

Question 2: Chart the average part worths (include yours and others already estimated in the software).

Choose the following data: Forte Hotel Data (Conjoint 3, Analysis)

Go to Conjoint, and Run Analysis

Check off boxes, as indicated

Add your estimated part worths to those already estimated. Use Excel to calculate the average part worths, and chart the part worths.

Question 3: Predict Market Share for every existing hotel


Question 4: Estimate percentage change in market shares for every existing hotel, if each of the proposed new hotels entered the market.

Continue where you left off, for Question 3

See the change in market shares among existing hotels, if a new hotel entered the market (see below example for change in market shares when Professional 1 enters the market).

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