Programming the statistical procedures from SAS

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

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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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