PRICING ASSIGNMENT NO. 4: CONJOINT ANALYSIS RESEARCH SCENARIO Hotel A is a small hotel with small rooms, an outdoor pool, and color TV with HBO; it is priced at $55 per night. Hotel B is a large hotel...

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Extracted text: PRICING ASSIGNMENT NO. 4: CONJOINT ANALYSIS RESEARCH SCENARIO Hotel A is a small hotel with small rooms, an outdoor pool, and color TV with HBO; it is priced at $55 per night. Hotel B is a large hotel with standard size rooms, indoor pool, whirlpool, sauna, and color TV with HBO; it is priced at $95 per night. Feature Utility Facilities (two levels) Small, two-story hotel, 100 rooms 1.0 Large, multistory hotel, 500 + rooms 0.8 Rooms (three levels) Standard-size room 0.6 Large room 0.8 Small room 0.2 Recreation/entertainment (four levels) Indoor pool 1.0 Outdoor pool 0.4 Color TV, HB0 1.2 Whirl, sauna 0.8 Price (single room) (three levels) $55 1.9 75 1.7 95 1.5 Question No. 1 For the buyer, what is the total utility of hotel A and hotel B? Question No. 2 For hotel A to be successful with this buyer, it would have to increase the total utility be at least 1.2 and you are the General Manager. How will the hotel do it?