Problem
Several of your team members agree that a complimentary therapeutic massage with each visit will help patients manage their pain.
"Maybe so," the CFO say. "But it will cost us $30 for each massage we do. If a patient has 10 massages, that will cost us $300. How do we know whether patients will prefer paying an extra $300 for the package with the massages bundled in?"
"I can help," you say. "Our conjoint analysis will tell us whether patients are willing to pay enough to cover the additional cost of the massage."
To answer the question, you first calculate the dollar value of each point of utility. You determine that the each utility point is worth $ .
Next, you calculate the number of utility points patients assign to a massage pts.
Therefore, the massage is apparently worth $ to patients.