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First of all the categorical variables in data prepared for 18 mobiles in previous shown format is transformed to dummy variables :

Dummy Format of Data >>>

*Using the golden rule for creating dummy variables that if there are n variation in a categorical variables, we should make only n-1 dummy variables for it.*

*Hence the redundant variables highlighted in yellow in "Data with dummies" are removed and we are left with the data shown right >>>*

With the use of Data Analysis Tools pack within Excel, we run a Regression analysis on the above data with

**Preference**as dependent (Y) variables and

**Hamsung, Jokia, Red, $50 and $100**as independent variables (X variables).

### Result of Regression in Excel

The beta coefficients of the regression equation are called "Part Worth Utility" (PWU) of the variants of variables.

**Large part-worth utilities are assigned to the most preferred levels, and small part-worth utilities are assigned to the least preferred levels.**

**The PWU of $50 is more than that of $100, means that the buyer prefers $50 mobile more that $100 mobile.**

**But I would suggest you to be little patient with interpretation, wait for utility calculations.**

If A, B, C are the variants of a variable, and if the dummies A and B are used in model,

**the coefficient of A and B are both**

**relative to C**, C's part worth utility is consider as "0" and hence the coefficients are part worth utility of A and B.

###
**Now we calculate the utility of each variant using part worth utilities.**

**the coefficient of A and B are both**

**relative to C**, we can consider solving following sets of equations:

Set 1:

EQ 1 : Hamsung - Pineapple = -3.17

EQ 2 : Jokia - Pineapple = -1.50

EQ 3 : Hamsung + Pineapple + Jokia = 0

EQ 1 : Red - Blue = -1.11

EQ 2 : Red + Blue = 0

Set 3:

EQ 1 : $50 - $150 = 4.50

EQ 2 : $100 -$150 = 2.33

EQ 3 : $50 + $100 + $150 = 0

Solving above sets of equation gives the utility of individual variant of each variable.

EQ 1 : $50 - $150 = 4.50

EQ 2 : $100 -$150 = 2.33

EQ 3 : $50 + $100 + $150 = 0

Solving above sets of equation gives the utility of individual variant of each variable.

**Now you can start interpreting the choice and preferences of buyer.**

1. Brand preference of Pineapple > Jokia > Hamsung

2. Color preference Blue > Red

3. Price preference $50 > $100>$150 ...

###
**But one question is still unanswered ? What ????**

Which is more important for buyer : Brand, Color or Price ? How much weightage he gives to these attributes ?

So Now let's calculate Relative Importance Weights :

First we calculate the range of utility using following formula :

*Range = Maximum (Utility of variants) - Minimum (Utility of variants)*

**Now relative importance or weighatge :**

Importance of Brand = range of Brand / (Range of Brand + Range of Color + Range of Price )

Importance of Color = range of Color / (Range of Brand + Range of Color + Range of Price )

Importance of Price = range of Price / (Range of Brand + Range of Color + Range of Price )

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Thank you very much...you have stated it clearly in a simple manner...it helped me a lot for my thesis work...thanks

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