Markus is a 28-year-old master student in International Finance & Entrepreneurship at the University of Applied Sciences Kaiserslautern, Germany. Based on his work experience in a bank and his academic education his research focus is the industry of financial services. In his leisure time, Markus does a lot of sports, e.g. soccer and running but he also plays chess.
Markus used Sawtooth Software’s CBC module to write his master thesis at the University of Applied Sciences Kaiserslautern. He analyzed the private customer preferences when financing a real estate in the German market. The project work aimed at determining the customer preferences when contracting a mortgage. In this context, the analyzed attributes were consulting quality, nominal interest rate, processing fees, provider and special repayment options.
First, the results of the conjoint analysis based on individual part-worth estimation confirm the outstanding importance of the interest rate when choosing a mortgage offer. In addition, the importance of special repayment agreement for the consumer is underlined. On the other hand, the attributes provider, consulting quality and processing fees is of minor importance:
Individual part-worth estimation using Heirarchial Bayes
Moreover, the study shows a strong affinity of the customers for savings banks and co-operative banks which are both regionally active. This is confirmed by the results of a question of the most probable provider but also validated by the part-worths of the attribute provider in the conjoint analysis, which can be seen in the table above.