Oxygen Generator-Presentation

Consumer utility and preference theory the solution

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Unformatted text preview: function of time) Β = Superiority Function (Consumer preference, comparison to competition “preference”) Y= Consumer budget= p1*d1+p2*d2 Consumer Utility and Preference Further Quantification of β (ratio of consumer preference) H2 H1 Preference values must be between 0 and 1. A value of 1 indicates maximum preference toward a product. If the competitor preference H2= .69 and H1=1 (max) then the overall β = .69/1 = .69 Consumer Utility and Preference H2 H1 Consumer Preference H i wi yi wi= weight based on consumer preference characteristics, smaller than 1 yi= consumer utilities based on evaluation, can be changed to meet specific preference values. Range between 0 and 1. 1 is 100% satisfaction in the product Consumer Utility and Preference Determining weights 1. Identify Important Characteristics for general oxygen supply for a hospital 2. Determine consumer importance placed on characteristics through surveys 3. Characteristic relation to product properties 4. Determine weights to each characteristic from importance surveys Consumer Utility and Prefe...
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This note was uploaded on 08/31/2011 for the course CHE 4273 taught by Professor Staff during the Spring '10 term at Oklahoma State.

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