Introduction

This document presents a conjoint analysis conducted for the Forte Executive Innes hotel chain. The goal is to identify the combination of hotel attributes most valued by the target audience, informing design and marketing strategies to align with customer preferences.

Setup

Load necessary libraries and initialize the data frames used in the analysis.

library(conjoint)
## Warning: package 'conjoint' was built under R version 4.3.3
# Define the attributes and their levels
hotel <- expand.grid(
  room = c("small suite", "large room", "room office"),
  amenity = c("internet", "speaker phone", "room fax"),
  leisure = c("exercise room", "pool", "exercise + pool"),
  extras = c("shoe shine", "tape library", "fruit cheese", "newspaper"),
  delivery = c("yes", "no")
)
print(hotel)
##            room       amenity         leisure       extras delivery
## 1   small suite      internet   exercise room   shoe shine      yes
## 2    large room      internet   exercise room   shoe shine      yes
## 3   room office      internet   exercise room   shoe shine      yes
## 4   small suite speaker phone   exercise room   shoe shine      yes
## 5    large room speaker phone   exercise room   shoe shine      yes
## 6   room office speaker phone   exercise room   shoe shine      yes
## 7   small suite      room fax   exercise room   shoe shine      yes
## 8    large room      room fax   exercise room   shoe shine      yes
## 9   room office      room fax   exercise room   shoe shine      yes
## 10  small suite      internet            pool   shoe shine      yes
## 11   large room      internet            pool   shoe shine      yes
## 12  room office      internet            pool   shoe shine      yes
## 13  small suite speaker phone            pool   shoe shine      yes
## 14   large room speaker phone            pool   shoe shine      yes
## 15  room office speaker phone            pool   shoe shine      yes
## 16  small suite      room fax            pool   shoe shine      yes
## 17   large room      room fax            pool   shoe shine      yes
## 18  room office      room fax            pool   shoe shine      yes
## 19  small suite      internet exercise + pool   shoe shine      yes
## 20   large room      internet exercise + pool   shoe shine      yes
## 21  room office      internet exercise + pool   shoe shine      yes
## 22  small suite speaker phone exercise + pool   shoe shine      yes
## 23   large room speaker phone exercise + pool   shoe shine      yes
## 24  room office speaker phone exercise + pool   shoe shine      yes
## 25  small suite      room fax exercise + pool   shoe shine      yes
## 26   large room      room fax exercise + pool   shoe shine      yes
## 27  room office      room fax exercise + pool   shoe shine      yes
## 28  small suite      internet   exercise room tape library      yes
## 29   large room      internet   exercise room tape library      yes
## 30  room office      internet   exercise room tape library      yes
## 31  small suite speaker phone   exercise room tape library      yes
## 32   large room speaker phone   exercise room tape library      yes
## 33  room office speaker phone   exercise room tape library      yes
## 34  small suite      room fax   exercise room tape library      yes
## 35   large room      room fax   exercise room tape library      yes
## 36  room office      room fax   exercise room tape library      yes
## 37  small suite      internet            pool tape library      yes
## 38   large room      internet            pool tape library      yes
## 39  room office      internet            pool tape library      yes
## 40  small suite speaker phone            pool tape library      yes
## 41   large room speaker phone            pool tape library      yes
## 42  room office speaker phone            pool tape library      yes
## 43  small suite      room fax            pool tape library      yes
## 44   large room      room fax            pool tape library      yes
## 45  room office      room fax            pool tape library      yes
## 46  small suite      internet exercise + pool tape library      yes
## 47   large room      internet exercise + pool tape library      yes
## 48  room office      internet exercise + pool tape library      yes
## 49  small suite speaker phone exercise + pool tape library      yes
## 50   large room speaker phone exercise + pool tape library      yes
## 51  room office speaker phone exercise + pool tape library      yes
## 52  small suite      room fax exercise + pool tape library      yes
## 53   large room      room fax exercise + pool tape library      yes
## 54  room office      room fax exercise + pool tape library      yes
## 55  small suite      internet   exercise room fruit cheese      yes
## 56   large room      internet   exercise room fruit cheese      yes
## 57  room office      internet   exercise room fruit cheese      yes
## 58  small suite speaker phone   exercise room fruit cheese      yes
## 59   large room speaker phone   exercise room fruit cheese      yes
## 60  room office speaker phone   exercise room fruit cheese      yes
## 61  small suite      room fax   exercise room fruit cheese      yes
## 62   large room      room fax   exercise room fruit cheese      yes
## 63  room office      room fax   exercise room fruit cheese      yes
## 64  small suite      internet            pool fruit cheese      yes
## 65   large room      internet            pool fruit cheese      yes
## 66  room office      internet            pool fruit cheese      yes
## 67  small suite speaker phone            pool fruit cheese      yes
## 68   large room speaker phone            pool fruit cheese      yes
## 69  room office speaker phone            pool fruit cheese      yes
## 70  small suite      room fax            pool fruit cheese      yes
## 71   large room      room fax            pool fruit cheese      yes
## 72  room office      room fax            pool fruit cheese      yes
## 73  small suite      internet exercise + pool fruit cheese      yes
## 74   large room      internet exercise + pool fruit cheese      yes
## 75  room office      internet exercise + pool fruit cheese      yes
## 76  small suite speaker phone exercise + pool fruit cheese      yes
## 77   large room speaker phone exercise + pool fruit cheese      yes
## 78  room office speaker phone exercise + pool fruit cheese      yes
## 79  small suite      room fax exercise + pool fruit cheese      yes
## 80   large room      room fax exercise + pool fruit cheese      yes
## 81  room office      room fax exercise + pool fruit cheese      yes
## 82  small suite      internet   exercise room    newspaper      yes
## 83   large room      internet   exercise room    newspaper      yes
## 84  room office      internet   exercise room    newspaper      yes
## 85  small suite speaker phone   exercise room    newspaper      yes
## 86   large room speaker phone   exercise room    newspaper      yes
## 87  room office speaker phone   exercise room    newspaper      yes
## 88  small suite      room fax   exercise room    newspaper      yes
## 89   large room      room fax   exercise room    newspaper      yes
## 90  room office      room fax   exercise room    newspaper      yes
## 91  small suite      internet            pool    newspaper      yes
## 92   large room      internet            pool    newspaper      yes
## 93  room office      internet            pool    newspaper      yes
## 94  small suite speaker phone            pool    newspaper      yes
## 95   large room speaker phone            pool    newspaper      yes
## 96  room office speaker phone            pool    newspaper      yes
## 97  small suite      room fax            pool    newspaper      yes
## 98   large room      room fax            pool    newspaper      yes
## 99  room office      room fax            pool    newspaper      yes
## 100 small suite      internet exercise + pool    newspaper      yes
## 101  large room      internet exercise + pool    newspaper      yes
## 102 room office      internet exercise + pool    newspaper      yes
## 103 small suite speaker phone exercise + pool    newspaper      yes
## 104  large room speaker phone exercise + pool    newspaper      yes
## 105 room office speaker phone exercise + pool    newspaper      yes
## 106 small suite      room fax exercise + pool    newspaper      yes
## 107  large room      room fax exercise + pool    newspaper      yes
## 108 room office      room fax exercise + pool    newspaper      yes
## 109 small suite      internet   exercise room   shoe shine       no
## 110  large room      internet   exercise room   shoe shine       no
## 111 room office      internet   exercise room   shoe shine       no
## 112 small suite speaker phone   exercise room   shoe shine       no
## 113  large room speaker phone   exercise room   shoe shine       no
## 114 room office speaker phone   exercise room   shoe shine       no
## 115 small suite      room fax   exercise room   shoe shine       no
## 116  large room      room fax   exercise room   shoe shine       no
## 117 room office      room fax   exercise room   shoe shine       no
## 118 small suite      internet            pool   shoe shine       no
## 119  large room      internet            pool   shoe shine       no
## 120 room office      internet            pool   shoe shine       no
## 121 small suite speaker phone            pool   shoe shine       no
## 122  large room speaker phone            pool   shoe shine       no
## 123 room office speaker phone            pool   shoe shine       no
## 124 small suite      room fax            pool   shoe shine       no
## 125  large room      room fax            pool   shoe shine       no
## 126 room office      room fax            pool   shoe shine       no
## 127 small suite      internet exercise + pool   shoe shine       no
## 128  large room      internet exercise + pool   shoe shine       no
## 129 room office      internet exercise + pool   shoe shine       no
## 130 small suite speaker phone exercise + pool   shoe shine       no
## 131  large room speaker phone exercise + pool   shoe shine       no
## 132 room office speaker phone exercise + pool   shoe shine       no
## 133 small suite      room fax exercise + pool   shoe shine       no
## 134  large room      room fax exercise + pool   shoe shine       no
## 135 room office      room fax exercise + pool   shoe shine       no
## 136 small suite      internet   exercise room tape library       no
## 137  large room      internet   exercise room tape library       no
## 138 room office      internet   exercise room tape library       no
## 139 small suite speaker phone   exercise room tape library       no
## 140  large room speaker phone   exercise room tape library       no
## 141 room office speaker phone   exercise room tape library       no
## 142 small suite      room fax   exercise room tape library       no
## 143  large room      room fax   exercise room tape library       no
## 144 room office      room fax   exercise room tape library       no
## 145 small suite      internet            pool tape library       no
## 146  large room      internet            pool tape library       no
## 147 room office      internet            pool tape library       no
## 148 small suite speaker phone            pool tape library       no
## 149  large room speaker phone            pool tape library       no
## 150 room office speaker phone            pool tape library       no
## 151 small suite      room fax            pool tape library       no
## 152  large room      room fax            pool tape library       no
## 153 room office      room fax            pool tape library       no
## 154 small suite      internet exercise + pool tape library       no
## 155  large room      internet exercise + pool tape library       no
## 156 room office      internet exercise + pool tape library       no
## 157 small suite speaker phone exercise + pool tape library       no
## 158  large room speaker phone exercise + pool tape library       no
## 159 room office speaker phone exercise + pool tape library       no
## 160 small suite      room fax exercise + pool tape library       no
## 161  large room      room fax exercise + pool tape library       no
## 162 room office      room fax exercise + pool tape library       no
## 163 small suite      internet   exercise room fruit cheese       no
## 164  large room      internet   exercise room fruit cheese       no
## 165 room office      internet   exercise room fruit cheese       no
## 166 small suite speaker phone   exercise room fruit cheese       no
## 167  large room speaker phone   exercise room fruit cheese       no
## 168 room office speaker phone   exercise room fruit cheese       no
## 169 small suite      room fax   exercise room fruit cheese       no
## 170  large room      room fax   exercise room fruit cheese       no
## 171 room office      room fax   exercise room fruit cheese       no
## 172 small suite      internet            pool fruit cheese       no
## 173  large room      internet            pool fruit cheese       no
## 174 room office      internet            pool fruit cheese       no
## 175 small suite speaker phone            pool fruit cheese       no
## 176  large room speaker phone            pool fruit cheese       no
## 177 room office speaker phone            pool fruit cheese       no
## 178 small suite      room fax            pool fruit cheese       no
## 179  large room      room fax            pool fruit cheese       no
## 180 room office      room fax            pool fruit cheese       no
## 181 small suite      internet exercise + pool fruit cheese       no
## 182  large room      internet exercise + pool fruit cheese       no
## 183 room office      internet exercise + pool fruit cheese       no
## 184 small suite speaker phone exercise + pool fruit cheese       no
## 185  large room speaker phone exercise + pool fruit cheese       no
## 186 room office speaker phone exercise + pool fruit cheese       no
## 187 small suite      room fax exercise + pool fruit cheese       no
## 188  large room      room fax exercise + pool fruit cheese       no
## 189 room office      room fax exercise + pool fruit cheese       no
## 190 small suite      internet   exercise room    newspaper       no
## 191  large room      internet   exercise room    newspaper       no
## 192 room office      internet   exercise room    newspaper       no
## 193 small suite speaker phone   exercise room    newspaper       no
## 194  large room speaker phone   exercise room    newspaper       no
## 195 room office speaker phone   exercise room    newspaper       no
## 196 small suite      room fax   exercise room    newspaper       no
## 197  large room      room fax   exercise room    newspaper       no
## 198 room office      room fax   exercise room    newspaper       no
## 199 small suite      internet            pool    newspaper       no
## 200  large room      internet            pool    newspaper       no
## 201 room office      internet            pool    newspaper       no
## 202 small suite speaker phone            pool    newspaper       no
## 203  large room speaker phone            pool    newspaper       no
## 204 room office speaker phone            pool    newspaper       no
## 205 small suite      room fax            pool    newspaper       no
## 206  large room      room fax            pool    newspaper       no
## 207 room office      room fax            pool    newspaper       no
## 208 small suite      internet exercise + pool    newspaper       no
## 209  large room      internet exercise + pool    newspaper       no
## 210 room office      internet exercise + pool    newspaper       no
## 211 small suite speaker phone exercise + pool    newspaper       no
## 212  large room speaker phone exercise + pool    newspaper       no
## 213 room office speaker phone exercise + pool    newspaper       no
## 214 small suite      room fax exercise + pool    newspaper       no
## 215  large room      room fax exercise + pool    newspaper       no
## 216 room office      room fax exercise + pool    newspaper       no

Data Loading

Load the data from CSV files, which includes preferences, profiles, and level names.

preferences=read.csv("C:/Users/gambe/Downloads/forte_preferences.csv", header=TRUE) 
profiles=read.csv("C:/Users/gambe/Downloads/forte_profiles.csv", header=TRUE) 
levelnames=read.csv("C:/Users/gambe/Downloads/forte_levels.csv", header=TRUE) 
simulation1=read.csv("C:/Users/gambe/Downloads/forte_simulation1.csv", header=TRUE)  # for exiting hotels
simulation2=read.csv("C:/Users/gambe/Downloads/forte_simulation2.csv", header=TRUE)  # for new hotels being considered

preferences
##    profile01 profile02 profile03 profile04 profile05 profile06 profile07
## 1         56        48        31        47        24        69        34
## 2         25        58        49        71        58        63        38
## 3         67         2        53        16        67        46        39
## 4         38        64        50        69        50        49        57
## 5         64        47        83        52        73        21        66
## 6         43        50        32        36        56        32        46
## 7         22        54         1        32        39        29        50
## 8         18        34        42        27        27        18        32
## 9         56        34        44        30        48        11        61
## 10        48        54        35        26        24        30        42
## 11        61        31        35        47        32        56        22
## 12        50         4        66         7        44        19        60
## 13        55        50        60        46        34        21        33
## 14        63        48        45        62        62        54        52
## 15        57        44        60        65        50        66        16
## 16        21        87        17        57        24        38        48
## 17        17        28        73        32        28        32        61
## 18        41        47        18        37        48        19        45
## 19        25        18        72        24        38        30        43
## 20        32        44        57        44        35        21        63
## 21        80        61         3        52        73        53        17
## 22        42        56        33        70        60        49        30
## 23        26        56        44        64        73        63        72
## 24        79        16        54        28        59        36        27
## 25        40        42        37        40        50        22        55
## 26        37        52        63        57        16        48        28
## 27        65        47        15        41        79        32        41
## 28        30        28        61        39        61        41        64
## 29        71        16        39        26        65        30        35
## 30        35        45        40        41        38        26        29
## 31        51         8        62        15        54        31        44
## 32        36        53        38        74        46        89        14
## 33        16        68        36        46        32        27        70
## 34        35        43        70        40        48        27        47
## 35        52        39        21        30        57        41        41
## 36        24        25        35        17        35        13        58
## 37        44        25        60        34        32        41        37
## 38        32        43        38        27        47        47        56
## 39        62        75        36        53        45        37        54
## 40        57        38        92        53        39        45        40
##    profile08 profile09 profile10 profile11 profile12 profile13 profile14
## 1         22        28        30        76        36        27        16
## 2         36        34        52        38        80        49        74
## 3         34        43        31        49        38        55        61
## 4         27        29        22        58        33        70        24
## 5         17        66        43        57        57        69        47
## 6         20        84         5        46        18        73        17
## 7         27        49        31        19        27        37         4
## 8         50        60        13        22        10        51        45
## 9         15        39        70        54        58        45        27
## 10        51        75        60        28        48        25        59
## 11        85         7        77        31        46        26        53
## 12        26        31        49        51        44        28        55
## 13        43        52        24        29        18        31        20
## 14        59         4        83        31        69        40        52
## 15        50        44        64        55        80        46        83
## 16        53        75        47        32        41        55        38
## 17        55        39        32        62        30        24        37
## 18        20        57        36        38        30        65         9
## 19        39        47         7        41        21        31        51
## 20         9        22        58        57        62        28        33
## 21        53        86        57        19        51        83        46
## 22        24        38        39        45        55        62        25
## 23        25        23        56        51        81        58        59
## 24        25        57        27        57        30        64        40
## 25        13        56        48        67        49        60        10
## 26        66        38        27        47        22        35        49
## 27        45        59        66         5        56        65        42
## 28        13        38        36        67        58        45        39
## 29         4        36        36        46        43        62        37
## 30        55        83        35        42        30        53        26
## 31        41        56        44        48        46        41        62
## 32        78        43        56        52        69        52        77
## 33        52        52        41        29        31        48        35
## 34        59        83        16        42        20        59        47
## 35        21        52        38        30        46        49        40
## 36        32        61        51        59        40        45        23
## 37        60        50        23        61        15        53        42
## 38        25        75         3        57        20        59        34
## 39        73        54        76         7        51        36        55
## 40        49        24        40        45        47        26        73
##    profile15 profile16
## 1         29        58
## 2         13        58
## 3         35        53
## 4         71        30
## 5         52        34
## 6         36        31
## 7         29        32
## 8         52        22
## 9         68        39
## 10        27        79
## 11        63        39
## 12        52        50
## 13        33         9
## 14        59        46
## 15        18        62
## 16        56        60
## 17        64        12
## 18        57        24
## 19        28        23
## 20        52        41
## 21        24        61
## 22        29        20
## 23        40        65
## 24        41        36
## 25        63        20
## 26        57        31
## 27        31        45
## 28        36        34
## 29        36        46
## 30        45         7
## 31        36        43
## 32        29        56
## 33        73        42
## 34        52        14
## 35        15        62
## 36        70        23
## 37        75        23
## 38        35        54
## 39        47        66
## 40        36        46
profiles 
##    room amenity leisure extras delivery
## 1     1       1       1      1        1
## 2     2       2       3      1        2
## 3     3       3       2      1        1
## 4     2       2       2      1        2
## 5     1       2       2      2        1
## 6     2       1       2      2        2
## 7     3       2       3      2        1
## 8     2       3       1      2        2
## 9     1       3       3      3        2
## 10    2       2       1      3        1
## 11    3       1       2      3        2
## 12    2       2       2      3        1
## 13    1       2       2      4        2
## 14    2       3       2      4        1
## 15    3       2       1      4        2
## 16    2       1       3      4        1
levelnames
##             levels
## 1      small suite
## 2       large room
## 3      room office
## 4         internet
## 5    speaker phone
## 6         room fax
## 7    exercise room
## 8             pool
## 9  exercise + pool
## 10      shoe shine
## 11    tape library
## 12    fruit cheese
## 13       newspaper
## 14             yes
## 15              no
simulation1
##   room amenity leisure extras delivery
## 1    1       2       3      4        1
## 2    2       2       1      4        1
## 3    2       2       1      2        2
## 4    1       2       3      4        2
## 5    3       3       3      1        1
simulation2
##   room amenity leisure extras delivery
## 1    3       1       1      3        2
## 2    1       3       1      2        1
## 3    2       2       3      2        2
## 4    2       1       3      2        1
dim(preferences)
## [1] 40 16
dim(profiles)
## [1] 16  5
dim(levelnames)
## [1] 15  1
dim(simulation1)
## [1] 5 5
dim(simulation2)
## [1] 4 5

Part-Worths and Total Utilities Calculation

Calculate and display the part-worth utilities and total utilities for all respondents.

partutilities <- caPartUtilities(y=preferences, x=profiles, z=levelnames)
print(head(partutilities))
##      intercept small suite large room room office internet speaker phone
## [1,]    40.250      -5.250      1.750       3.500   23.625        -6.750
## [2,]    41.458      -4.333     15.667     -11.333   -2.875         3.500
## [3,]    46.583      12.292    -10.583      -1.708    8.125       -10.250
## [4,]    44.417      -1.750     -8.750      10.500    0.167        10.917
## [5,]    54.500      10.583    -17.667       7.083   -7.542         5.833
## [6,]    43.167      20.625    -17.250      -3.375   -0.750         1.250
##      room fax exercise room   pool exercise + pool shoe shine tape library
## [1,]  -16.875        -4.750  1.750           3.000      6.062       -2.188
## [2,]   -0.625       -14.750 14.000           0.750      1.000       -1.000
## [3,]    2.125         0.375  6.750          -7.125     -8.562        3.437
## [4,]  -11.083        -5.458  5.417           0.042      8.937       -0.563
## [5,]    1.708        -7.542  5.833           1.708      8.500       -8.750
## [6,]   -0.500       -13.167 -0.417          13.583      1.188       -0.563
##      fruit cheese newspaper    yes     no
## [1,]        3.062    -6.937 -3.813  3.813
## [2,]        1.250    -1.250  4.500 -4.500
## [3,]       -2.813     7.937  8.062 -8.062
## [4,]      -10.812     2.438 -8.312  8.312
## [5,]        2.750    -2.500  5.375 -5.375
## [6,]       -0.812     0.188 -8.063  8.063
totalutilities <- caTotalUtilities(y=preferences, x=profiles)
print(head(totalutilities))
##        [,1]   [,2]   [,3]   [,4]   [,5]  [,6]   [,7]   [,8]   [,9]  [,10]
## [1,] 56.125 48.125 30.875 46.875 24.000 69.00 34.000 22.000 28.000 29.750
## [2,] 25.000 57.875 49.000 71.125 58.125 62.75 37.875 36.250 34.000 51.625
## [3,] 66.875  2.000 53.250 15.875 66.875 46.25 39.000 33.875 43.000 31.375
## [4,] 38.000 63.875 49.875 69.250 50.125 49.00 57.000 26.875 29.125 22.000
## [5,] 63.875 47.500 83.000 51.625 73.375 21.00 65.750 16.875 65.875 43.250
## [6,] 43.000 50.000 32.000 36.000 56.000 32.25 46.000 19.750 84.125  5.125
##       [,11]  [,12]  [,13]  [,14]  [,15]  [,16]
## [1,] 76.000 36.250 26.875 16.125 29.125 57.875
## [2,] 38.000 80.375 48.875 73.750 13.125 58.250
## [3,] 48.875 37.750 55.250 60.875 34.875 53.000
## [4,] 58.000 32.875 69.750 24.125 71.125 30.000
## [5,] 57.250 56.625 68.875 47.250 52.000 33.875
## [6,] 45.875 17.875 72.875 17.125 36.125 30.875

Importance Analysis for a Specific Respondent

Analyze the importance of each attribute for a specific respondent, such as Nissa (respondent No. 26).

importance <- caImportance(y=preferences[26,], x=profiles)
print(importance)
## [1] 21.94 21.94 12.08 23.85 20.19

Conjoint Analysis Execution

Perform conjoint analysis for both a specific respondent and all respondents.

# Specific respondent
Conjoint(preferences[26,], profiles, levelnames)
## 
## Call:
## lm(formula = frml)
## 
## Residuals:
##          1          2          3          4          5          6          7 
## -1,250e-01 -1,735e-17  2,266e-15  1,250e-01  2,500e-01 -1,250e-01 -1,250e-01 
##          8          9         10         11         12         13         14 
##  5,759e-16 -4,337e-16  1,250e-01  1,250e-01 -2,500e-01 -1,250e-01 -2,366e-15 
##         15         16 
## -8,431e-16  1,250e-01 
## 
## Coefficients:
##                     Estimate Std. Error  t value Pr(>|t|)    
## (Intercept)         43,16667    0,06455  668,735 1,42e-13 ***
## factor(x$room)1     -9,91667    0,08740 -113,462 1,01e-09 ***
## factor(x$room)2      2,58333    0,07454   34,659 3,76e-07 ***
## factor(x$amenity)1  -3,08333    0,08740  -35,278 3,44e-07 ***
## factor(x$amenity)2  -7,08333    0,07454  -95,033 2,45e-09 ***
## factor(x$leisure)1   4,70833    0,08740   53,871 4,17e-08 ***
## factor(x$leisure)2   0,08333    0,07454    1,118    0,314    
## factor(x$extras)1   10,18750    0,09682  105,216 1,47e-09 ***
## factor(x$extras)2   -2,56250    0,09682  -26,465 1,44e-06 ***
## factor(x$extras)3   -8,56250    0,09682  -88,433 3,50e-09 ***
## factor(x$delivery)1 -7,93750    0,05590 -141,990 3,29e-10 ***
## ---
## Signif. codes:  0 '***' 0,001 '**' 0,01 '*' 0,05 '.' 0,1 ' ' 1
## 
## Residual standard error: 0,2236 on 5 degrees of freedom
## Multiple R-squared:  0,9999, Adjusted R-squared:  0,9998 
## F-statistic:  6769 on 10 and 5 DF,  p-value: 1,1e-09
## [1] "Part worths (utilities) of levels (model parameters for whole sample):"
##             levnms    utls
## 1        intercept 43,1667
## 2      small suite -9,9167
## 3       large room  2,5833
## 4      room office  7,3333
## 5         internet -3,0833
## 6    speaker phone -7,0833
## 7         room fax 10,1667
## 8    exercise room  4,7083
## 9             pool  0,0833
## 10 exercise + pool -4,7917
## 11      shoe shine 10,1875
## 12    tape library -2,5625
## 13    fruit cheese -8,5625
## 14       newspaper  0,9375
## 15             yes -7,9375
## 16              no  7,9375
## [1] "Average importance of factors (attributes):"
## [1] 21,94 21,94 12,08 23,85 20,19
## [1] Sum of average importance:  100
## [1] "Chart of average factors importance"
# All respondents
Conjoint(y=preferences, x=profiles, z=levelnames)
## 
## Call:
## lm(formula = frml)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -44,737 -12,733  -0,142  12,666  50,906 
## 
## Coefficients:
##                      Estimate Std. Error t value Pr(>|t|)    
## (Intercept)         43,688542   0,812918  53,743  < 2e-16 ***
## factor(x$room)1      3,000000   1,100696   2,726 0,006598 ** 
## factor(x$room)2     -3,243750   0,938677  -3,456 0,000586 ***
## factor(x$amenity)1  -1,468750   1,100696  -1,334 0,182561    
## factor(x$amenity)2   0,906250   0,938677   0,965 0,334688    
## factor(x$leisure)1  -0,997917   1,100696  -0,907 0,364953    
## factor(x$leisure)2   0,389583   0,938677   0,415 0,678258    
## factor(x$extras)1    0,104688   1,219377   0,086 0,931610    
## factor(x$extras)2   -1,264062   1,219377  -1,037 0,300299    
## factor(x$extras)3    0,885937   1,219377   0,727 0,467772    
## factor(x$delivery)1  0,007813   0,704008   0,011 0,991149    
## ---
## Signif. codes:  0 '***' 0,001 '**' 0,01 '*' 0,05 '.' 0,1 ' ' 1
## 
## Residual standard error: 17,81 on 629 degrees of freedom
## Multiple R-squared:  0,02767,    Adjusted R-squared:  0,01221 
## F-statistic:  1,79 on 10 and 629 DF,  p-value: 0,05914
## [1] "Part worths (utilities) of levels (model parameters for whole sample):"
##             levnms    utls
## 1        intercept 43,6885
## 2      small suite       3
## 3       large room -3,2438
## 4      room office  0,2437
## 5         internet -1,4687
## 6    speaker phone  0,9063
## 7         room fax  0,5625
## 8    exercise room -0,9979
## 9             pool  0,3896
## 10 exercise + pool  0,6083
## 11      shoe shine  0,1047
## 12    tape library -1,2641
## 13    fruit cheese  0,8859
## 14       newspaper  0,2734
## 15             yes  0,0078
## 16              no -0,0078
## [1] "Average importance of factors (attributes):"
## [1] 29,20 21,32 19,74 15,94 13,80
## [1] Sum of average importance:  100
## [1] "Chart of average factors importance"

Segementation Analysis

Segment the respondents using k-means clustering and visualize the results.

segments <- caSegmentation(preferences, profiles)
print(segments$seg)
## K-means clustering with 2 clusters of sizes 28, 12
## 
## Cluster means:
##       [,1]     [,2]     [,3]     [,4]     [,5]     [,6]     [,7]     [,8]
## 1 41.85268 36.81250 47.54911 36.00000 45.17857 32.04911 46.81250 31.88839
## 2 50.12500 54.29167 39.04167 55.45833 50.34375 52.19792 38.07292 54.71875
##       [,9]    [,10]    [,11]    [,12]    [,13]    [,14]    [,15]    [,16]
## 1 50.75893 32.70982 48.41071 35.22768 48.88839 34.12500 47.19196 32.58036
## 2 44.02083 61.16667 32.81250 59.91667 46.76042 59.30208 36.90625 56.86458
## 
## Clustering vector:
##  [1] 1 2 1 1 1 1 1 1 1 2 2 1 1 2 2 2 1 1 1 1 2 1 2 1 1 1 2 1 1 1 1 2 1 1 1 1 1 1
## [39] 2 2
## 
## Within cluster sum of squares by cluster:
## [1] 105093.4  53274.4
##  (between_SS / total_SS =  20.6 %)
## 
## Available components:
## 
## [1] "cluster"      "centers"      "totss"        "withinss"     "tot.withinss"
## [6] "betweenss"    "size"         "iter"         "ifault"
# Required packages for visualization
require(fpc)
## Loading required package: fpc
## Warning: package 'fpc' was built under R version 4.3.3
require(broom)
## Loading required package: broom
require(ggplot2)
## Loading required package: ggplot2
dcf <- discrcoord(segments$util, segments$sclu)
assignments <- augment(segments$segm, dcf$proj[,1:2])
ggplot(assignments) + geom_point(aes(x=X1, y=X2, color=.cluster)) + labs(color="Cluster Assignment", title="K-Means Clustering Results")

Conclusion

The analysis clearly shows a strong preference among target consumers, especially discerning business travelers like Nissa, for spacious accommodations and high-level business amenities, including robust internet access and versatile leisure facilities. These preferences are consistent across different segments, indicating their broad appeal.

The segmentation reveals distinct groups within the broader market, each with unique preferences. While a larger segment favors cost-effective and practical solutions, a smaller, more lucrative segment (including frequent travelers like Nissa) places significant value on luxury and comprehensive services.

Profiles that align with the high-utility preferences identified through conjoint analysis—particularly those combining luxury, technology, and comprehensive services—are likely to capture a substantial share of the target market.