CVS wants to determine how to price Listerine with whitener (LW), Listerine (LIST), and CVS mouthwash. One hundred people were shown the following price scenarios, and their choices are listed in Figure. For example, with LW at $6.60, LIST at $5, and CVS at $3.25, 37 picked no mouthwash, 18 chose LISTW, 20 preferred LIST, and 25 chose CVS.
a. Fit a discrete choice model to this data. Use only a single price variable.
b. Using Value-Based Pricing, estimate the value customers place on the whitening feature.
c. Using Value-Based Pricing, estimate the brand equity of P&G.