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Refer to the Salem Foods share of choices problem in Section 11.3 and address the following issues. It is rumored that King’s is getting out of the frozen pizza business. If so, the major competitor for Salem Foods will be the Antonio’s brand pizza.
a. Compute the overall utility for the Antonio’s brand pizza for each of the consumers in Table 11.4.
b. Assume that Salem’s only competitor is the Antonio’s brand pizza. Formulate and solve the share of choices problem that will maximize market share. What is the best product design, and what share of the market can be expected?
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