At any rate, if either one of those is true, you know or
you've done some marketing research.
You need to use that knowledge to define a list of attributes
that's going to be important.
You need to make sure that these attributes are independent
from each other, so that they don't overlap too much.
For example, brand might be an attribute,
price might be an attribute, color might be an attribute.
Right, so these things are kind of separate from each other.
And you need then to define the different levels of the attribute, okay.
So a level of the attribute brand, you might have five different levels and
those would be the five different brand names that you are testing.
If you look at the screen, you can see this up on the screen.
For example, we've got one level here that's manufacturer, okay.
And then we have different levels of manufacturer.
One level's a BMW328i,
another's a Ford Focus sedan, the other is a Ford Focus hatchback.
And you may have many more levels than that, but since it's only going to show
you three products on the screen at one time, and that's fairly common in thee
situations, you're only going to see three different levels at any particular time.
You'll also see navigation system.
In this case, navigation system only has two levels.
It either has it, okay.
The Ford Focus sedan given here has it.
The BMW does not have it.
Okay, so it's either and that's why you see it repeated.
So both of these particular choices, the Ford Focus sedan and the Ford Focus
hatchback do have the level of navigation system, which is they have it.
You also see color, pearl white, metallic dark blue and black.
Those are three levels of the attribute color.
We have interior levels which only have two levels, cloth interior and
leather interior.
And finally the attribute that we care most about,
given our purpose in this course, is the price.
And you can put many different levels of price in here.
Why are you doing that?
Remind ourselves.
What we're trying to figure out is,
how will people trade off price with the other attributes that a product
has in order to determine what someone's willingness to pay?