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# CBC: How to treat attribute level-dependent price effects in later analyses

[ Edited ]

Hi everyone,

let's say I am running a choice based conjoint analysis and a simple MNL model with proc phreg and the ties=breslow option.

Among other attributes (Color), I have an attribute level (Car) that is naturally higher priced that the another attribute level (Bike). Therefore, I connect the price attribute levels to Car and Bike, e.g.
If "Car" is in the product alternative in the CBC, a price of either \$1000, \$2000 or \$3000 is shown.

If "Bike" is in the product alternative in the CBC, a price of either \$400, \$600 or \$800 is shown.

I know these price don't make any sense but this is just an example.

In the regression, I have now coefficients for

- Red: 1,5

- Blue: 1,0

(White base product =0)

- Car: 1,8

(Bike base product =0)

- Price if Car:

\$2000: -0,5

\$3000: -0,75

(\$1000 base product =0)

- Price if Bike:

\$600: -0,25

\$800: -0,5

(\$400 base product =0)

Now let's say I want to calculate the relative importances of the attributes.

The question is how do I treat the price attribute?

Can I just take the relative importance for all the prices (then I could just substract -0,75 from 0 = -0,75) or do I have to treat the price effects of both Car and Bike seperately (then the importance for "Price if Car" would be more important (-0,75) than "Price if Bike" (-0,5).

Thank you very much for your help.

Best,

Alex

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