An Approach to Decision-Based Design With Discrete Choice Analysis for Demand Modeling

2003 ◽  
Vol 125 (3) ◽  
pp. 490-497 ◽  
Author(s):  
Henk Jan Wassenaar ◽  
Wei Chen
Keyword(s):  
Discrete Choice ◽  
Discrete Choice Analysis ◽  
Demand Model ◽  
Research Issues ◽  
Demand Modeling ◽  
Product Demand ◽  
Single Criterion ◽  
Choice Analysis ◽  
Motor Design ◽  
Decision Based Design

In this paper, we present the importance of using a single criterion approach to Decision-Based Design (DBD) by examining the limitations of multicriteria approaches. We propose in this paper an approach to DBD as an enhancement to Hazelrigg’s DBD framework that utilizes the economic benefit to the producer as the single criterion in alternative selection. The technique of Discrete Choice Analysis (DCA) is introduced for constructing a product demand model, which is crucial for the evaluation of both profit and production cost. An academic universal motor design problem illustrates the proposed DBD approach. It appears that DBD, when applied correctly, is capable of unambiguously selecting the preferred alternative in a rigorous manner. Open research issues related to implementing the DBD approach are raised. The focus of our study is on demonstrating the approach rather than the design results per se.

An Approach to Decision-Based Design

2001 ◽  
Author(s):  
Henk Jan Wassenaar ◽  
Wei Chen
Keyword(s):  
Discrete Choice ◽  
Discrete Choice Analysis ◽  
Demand Model ◽  
Research Issues ◽  
Product Demand ◽  
Open Research ◽  
Single Criterion ◽  
Choice Analysis ◽  
Motor Design ◽  
Decision Based Design

Abstract In this paper, we present the importance of using a single-criterion approach to Decision-Based Design (DBD) by examining the flaws and limitations of multicriteria approaches. We propose in this paper an approach to DBD as an enhancement to Hazelrigg’s DBD framework that utilizes the economic benefit to the producer as the single criterion in alternative selection. The technique of Discrete Choice Analysis (DCA) is introduced for constructing a product demand model, which is crucial for the evaluations of both profit and production cost. An academic universal motor design problem illustrates the proposed DBD approach. It appears that DBD, when applied correctly, is capable of unambiguously selecting the preferred alternative in a rigorous manner. Open research issues related to implementing the DBD approach are raised. The focus of our study is on demonstrating the approach rather than the design results per se.

Enhancing Discrete Choice Demand Modeling for Decision-Based Design

2003 ◽  
Author(s):  
Henk Jan Wassenaar ◽  
Wei Chen ◽  
Jie Cheng ◽  
Agus Sudjianto
Keyword(s):  
Discrete Choice ◽  
Market Research ◽  
Ford Motor Company ◽  
Demand Model ◽  
Demand Modeling ◽  
Product Demand ◽  
Demand Models ◽  
Discrete Choice Demand ◽  
Decision Based Design ◽  
Key Customer

Our research is motivated by the need for developing a rigorous Decision-Based Design framework and the need for developing an approach to demand modeling that is critical for assessing the profit a product can bring. Even though demand modeling techniques exist in market research, little work exists on product demand modeling that addresses the specific needs of engineering design in particular that facilitates engineering decision-making. Building upon our earlier work on using the discrete choice analysis approach to demand modeling, in this work, we provide detailed guidelines for implementing the discrete choice demand modeling approach in product design. The modeling of a hierarchy of product attributes is introduced to cascade customer desires to specific key customer attributes that can be represented using engineering language. To improve the predictive capability of demand models, we propose to use the Kano method for providing the econometric justification when selecting the shape of the customer utility function. A real (passenger) vehicle engine case study, developed in collaboration with the market research firm J.D. Power & Associates and Ford Motor Company, demonstrates the proposed approaches. The example focuses on demand analysis and does not reach beyond the key customer attribute level. The obtained demand model is shown to be satisfactory through cross validation.

scholarly journals Determination of Additional Willingness to Pay for Socially Responsible Technical Products Using Discrete Choice Analysis

2016 ◽  
Vol 6 (1) ◽  
pp. 45
Author(s):  
Florian Vincent Haase ◽  
Maria Kohlmeyer ◽  
Beatrice Rich ◽  
Ralf Woll
Keyword(s):  
Social Responsibility ◽  
Willingness To Pay ◽  
Discrete Choice ◽  
Discrete Choice Analysis ◽  
Socially Responsible ◽  
Choice Analysis ◽  
Primary Goods ◽  
Technical Products

<p>Previous studies examined additional willingness to pay for socially responsible primary goods. However, technical products have not been considered. Therefore, the purpose of this study is to estimate additional willingness to pay for socially responsible technical products. Within an overview of given methods for measuring willingness to pay, the discrete choice analysis was applied to this study. As technical products, computer mice were chosen exemplary, since there is a partially fair mouse available. It was found that two of three fair labeled mice have a negative willingness to pay. Only consumers of the fair produced and labeled mouse has a positive willingness to pay. The consumers pay perhaps more attention to the aspect of social responsibility, if presented brands are comparatively unknown. In this connection, consumers allocate a higher value to social responsibility.</p>

scholarly journals Research: Discrete Choice Analysis in Hospitality Management Research

1997 ◽  
Vol 21 (1) ◽  
pp. 28-47 ◽  
Author(s):  
Rohit Verma ◽  
Gary M. Thompson
Keyword(s):  
Conjoint Analysis ◽  
Discrete Choice ◽  
Logit Model ◽  
Multinomial Logit Model ◽  
Theoretical Background ◽  
Hospitality Management ◽  
Discrete Choice Analysis ◽  
Management Research ◽  
Customer Preferences ◽  
Choice Analysis

This article focuses on discrete choice analysis (DCA), which offers an effective approach for incorporating customer preferences into operating decisions in hospitality businesses. First the theoretical background of DCA is presented, including a discussion of how DCA compares to conjoint analysis. The authors then present a guide to designing and conducting a DCA study. Conducting a discrete choice study involves identifying the attributes relevant to customers'choices and the appropriate levels of these attributes, designing an experiment, collecting data and estimating parameters using a multinomial logit model. Finally, the strategic implications of DCA in hospitality management research are discussed.

Predicting customer choice in services using discrete choice analysis

2008 ◽  
Vol 47 (1) ◽  
pp. 179-191 ◽  
Author(s):  
R. Verma ◽  
G. R. Plaschka ◽  
B. Hanlon ◽  
A. Livingston ◽  
K. Kalcher
Keyword(s):  
Discrete Choice ◽  
Discrete Choice Analysis ◽  
Customer Choice ◽  
Choice Analysis
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