A profit-oriented approach for selection of new product scheme
The multinomial logit (MNL) consumer choice rules employed in the extant product design research assume that a product always has a market share even though the product has a very low utility value. In this paper, a new consumer choice rule integrating the dollar-scaled utility with piecewise logit function is proposed to avoid estimation bias caused by this problem. A profit maximizing model under the proposed rule is established in a multi-segment product market. It has been proven that in an unpartitioned product market, a local optimal solution of the model is also a global optimal solution, and hence standard nonlinear programming algorithms can be applied. An algorithm based on interval analysis is developed to solve the model under a multi-segment market. Finally, an example of selection of new product scheme is given to illustrate the feasibility and effectiveness of the proposed model and algorithm.
new product development product design product positioning consumer choice rule.
Xinggang LUO Yan CAO K. KWONG Jiafu TANG
Department of Systems Engineering, Key Laboratory of Integrated Automation of Process Industry of MO Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Ko Department of Systems Engineering, Key Laboratory of Integrated Automation of Process Industry of MO
国际会议
The 24th Chinese Control and Decision Conference (第24届中国控制与决策学术年会 2012 CCDC)
太原
英文
1805-1810
2012-05-23（万方平台首次上网日期，不代表论文的发表时间）