Which of the Following Is True of Conjoint Analysis in Concept

question 46

Multiple Choice

Which of the following is true of conjoint analysis in concept testing?

• A) Conjoint analysis cannot feasibly test attributes and levels using a reduced set of cards.
• B) Conjoint analysis ranks the possible combinations of attributes from the least preferred to the most preferred.
• C) Conjoint analysis cannot be used to identify those concepts that are the "real losers," which should not be considered for further development.
• D) Conjoint analysis is extremely useful in concept testing because of its ability to uncover relationships between attributes and customer preferences.

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Definitions:

Capacity

The highest level of production a business can maintain to produce a good or offer a service.

Sales Price

The sales price is the amount a customer pays for a product or service, determining the revenue generated from sales transactions.

Production Cost

Total expense incurred in manufacturing a product, which includes direct materials, direct labor, and factory overhead.

Variable Selling Costs

Expenses that vary directly with the volume of sales, including commissions and shipping fees.