1. What do you learn from the results of the Conjoint Analysis presented in Exhibits 6 to 8? Specifically, what information can you get about the size of the cost sensitive market among current users, prospects and rejectors?
NOTE: Exhibit 6, which is derived from a conjoint analysis, can be read as follows: The “Total (Importance Score)” is the average score for all customers on the attributes given (Brand, Activation Cost, etc.). For each of the 4 segments created (Brand Loyal, Service / Special Service, etc.), the deviation score for each attribute are given. The actual score for any attribute for a segment is the sum of the average score and the deviation score.
Thus, the importance score for the Brand Loyal users for the attribute “Brand” is 54 (average score) + 127 (segment score) = 181. Similarly, the importance score for Monthly / Peak segment on that attribute is (54-64) = -10.
2. If you were Fabrizio Bona, what changes would you make to LIBERO and why?