8.3 One respondent

8.3.1 Estimate part-worths and importance weights

While some software requires you to first create dummy variables representing the attribute levels and then run a regression, Radiant does not require you to do so. You can simply use the attributes (each with multiple levels) as variables. We’ll first carry out a conjoint analysis on the data of one respondent (Individual 1):

## Conjoint analysis
## Data                 : respondent1 
## Response variable    : rating 
## Explanatory variables: Flavor, Packaging, Light, Organic 
## 
## Conjoint part-worths:
##    Attributes          Levels     PW
##  Flavor       Chocolate        0.000
##  Flavor       Mango            5.000
##  Flavor       Raspberry       -1.500
##  Flavor       Strawberry       5.000
##  Flavor       Vanilla          3.500
##  Packaging    Cone             0.000
##  Packaging    Homemade waffle  0.000
##  Packaging    Pint            -2.000
##  Light        Low fat          0.000
##  Light        No low fat      -1.000
##  Organic      Not organic      0.000
##  Organic      Organic          1.400
##  Base utility ~                3.800
## 
## Conjoint importance weights:
##  Attributes    IW
##   Flavor    0.596
##   Packaging 0.183
##   Light     0.092
##   Organic   0.128
## 
## Conjoint regression results:
## 
##                            coefficient
##  (Intercept)                     3.800
##  Flavor|Mango                    5.000
##  Flavor|Raspberry               -1.500
##  Flavor|Strawberry               5.000
##  Flavor|Vanilla                  3.500
##  Packaging|Homemade waffle       0.000
##  Packaging|Pint                 -2.000
##  Light|No low fat               -1.000
##  Organic|Organic                 1.400

The output gives part-worths, importance weights, and regression coefficients. The part-worths and the regression coefficients give the same information: compared to the reference level (the first level of an attribute; you’ll see that the part-worths are always zero for this level), how much does each attribute level increase or decrease the rating of an ice cream? We can plot these results:

And then we easily see that this person would enjoy a low fat, organic, mango or strawberry ice cream in a cone or one a homemade waffle the most.

Note that the Conjoint regression results are simply the results of a multiple linear regression:

## 
## Call:
## lm(formula = rating ~ Flavor + Packaging + Light + Organic, data = respondent1)
## 
## Residuals:
##    1    2    3    4    5    6    7    8    9   10 
## -0.3 -0.2  0.3 -0.2  0.2  0.2 -0.3 -0.2  0.2  0.3 
## 
## Coefficients:
##                            Estimate Std. Error t value Pr(>|t|)
## (Intercept)               3.800e+00  8.426e-01   4.510    0.139
## FlavorMango               5.000e+00  9.747e-01   5.130    0.123
## FlavorRaspberry          -1.500e+00  9.747e-01  -1.539    0.367
## FlavorStrawberry          5.000e+00  8.660e-01   5.774    0.109
## FlavorVanilla             3.500e+00  9.747e-01   3.591    0.173
## PackagingHomemade waffle  1.570e-15  8.944e-01   0.000    1.000
## PackagingPint            -2.000e+00  8.660e-01  -2.309    0.260
## LightNo low fat          -1.000e+00  5.916e-01  -1.690    0.340
## OrganicOrganic            1.400e+00  4.899e-01   2.858    0.214
## 
## Residual standard error: 0.7746 on 1 degrees of freedom
## Multiple R-squared:  0.9927, Adjusted R-squared:  0.9345 
## F-statistic: 17.06 on 8 and 1 DF,  p-value: 0.1852

Finally, the importance weights tell us how strongly each attribute determines the rating of an ice cream. For this respondent, flavor is the most important attribute and light is the least important attribute. This respondent’s rating is determined for 59.6 percent by flavor and for 9.2 percent by light.

8.3.2 Profiles: predicted utilities

Predicting the ratings (utilities) of the different ice creams is very easy in R. First, let’s make sure we have a dataset with the different profiles that were tested:

## # A tibble: 10 x 4
##    Flavor     Packaging       Light      Organic    
##    <fct>      <fct>           <fct>      <fct>      
##  1 Raspberry  Homemade waffle No low fat Not organic
##  2 Chocolate  Cone            No low fat Organic    
##  3 Raspberry  Pint            Low fat    Organic    
##  4 Strawberry Pint            No low fat Organic    
##  5 Strawberry Cone            Low fat    Not organic
##  6 Chocolate  Homemade waffle No low fat Not organic
##  7 Vanilla    Pint            Low fat    Not organic
##  8 Mango      Homemade waffle Low fat    Organic    
##  9 Mango      Pint            No low fat Not organic
## 10 Vanilla    Homemade waffle No low fat Organic

Then, we ask the predict function to predict the ratings of the profiles based on the regression function:

## Conjoint Analysis
## Data                 : respondent1 
## Response variable    : rating 
## Explanatory variables: Flavor, Packaging, Light, Organic 
## Prediction dataset   : profiles 
## 
##      Flavor       Packaging      Light     Organic Prediction
##   Raspberry Homemade waffle No low fat Not organic      1.300
##   Chocolate            Cone No low fat     Organic      4.200
##   Raspberry            Pint    Low fat     Organic      1.700
##  Strawberry            Pint No low fat     Organic      7.200
##  Strawberry            Cone    Low fat Not organic      8.800
##   Chocolate Homemade waffle No low fat Not organic      2.800
##     Vanilla            Pint    Low fat Not organic      5.300
##       Mango Homemade waffle    Low fat     Organic     10.200
##       Mango            Pint No low fat Not organic      5.800
##     Vanilla Homemade waffle No low fat     Organic      7.700

The predicted rating is highest for low fat, organic, mango ice cream on a homemade waffle. But these are predictions for ice creams that the respondent has actually rated. If we wanted to know which ice cream the respondent liked most, we could have just looked at his/her observed (instead of predicted) ratings. It’s more interesting to get predictions for ice creams that the respondent has not rated. For this, we need the profiles for all possible ice creams. We can create these profiles with the expand.grid function. The expand.grid function takes two or more vectors and creates every possible combination of elements of those vectors:

##          Var1        Var2
## 1   Raspberry     Organic
## 2   Chocolate     Organic
## 3       Mango     Organic
## 4  Strawberry     Organic
## 5     Vanilla     Organic
## 6   Raspberry Not organic
## 7   Chocolate Not organic
## 8       Mango Not organic
## 9  Strawberry Not organic
## 10    Vanilla Not organic

Let’s do this for all our attribute levels:

## [1] "Chocolate"  "Mango"      "Raspberry"  "Strawberry" "Vanilla"
## Conjoint Analysis
## Data                 : respondent1 
## Response variable    : rating 
## Explanatory variables: Flavor, Packaging, Light, Organic 
## Prediction dataset   : profiles.all 
## Rows shown           : 20 of 60 
## 
##      Flavor       Packaging      Light     Organic Prediction
##  Strawberry Homemade waffle    Low fat     Organic     10.200
##  Strawberry            Cone    Low fat     Organic     10.200
##       Mango Homemade waffle    Low fat     Organic     10.200
##       Mango            Cone    Low fat     Organic     10.200
##  Strawberry Homemade waffle No low fat     Organic      9.200
##  Strawberry            Cone No low fat     Organic      9.200
##       Mango Homemade waffle No low fat     Organic      9.200
##       Mango            Cone No low fat     Organic      9.200
##  Strawberry Homemade waffle    Low fat Not organic      8.800
##  Strawberry            Cone    Low fat Not organic      8.800
##       Mango Homemade waffle    Low fat Not organic      8.800
##       Mango            Cone    Low fat Not organic      8.800
##     Vanilla Homemade waffle    Low fat     Organic      8.700
##     Vanilla            Cone    Low fat     Organic      8.700
##  Strawberry            Pint    Low fat     Organic      8.200
##       Mango            Pint    Low fat     Organic      8.200
##  Strawberry Homemade waffle No low fat Not organic      7.800
##  Strawberry            Cone No low fat Not organic      7.800
##       Mango Homemade waffle No low fat Not organic      7.800
##       Mango            Cone No low fat Not organic      7.800

Same conclusion as that from the previous section: this person would enjoy a low fat, organic, mango or strawberry ice cream in a cone or one a homemade waffle the most.