Enhancing Discrete Choice Demand Modeling for Decision-Based Design

2005 ◽  
Vol 127 (4) ◽  
pp. 514 ◽  
Author(s):  
Henk Jan Wassenaar ◽  
Wei Chen ◽  
Jie Cheng ◽  
Agus Sudjianto
Keyword(s):  
Discrete Choice ◽  
Demand Modeling ◽  
Discrete Choice Demand ◽  
Decision Based Design

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.

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.

scholarly journals Heating Costs and Household Wood Stove Acquisition: A Discrete Choice Demand Model

1985 ◽  
Vol 14 (1) ◽  
pp. 65-70 ◽  
Author(s):  
Paul Francis Scodari ◽  
Ian W. Hardie
Keyword(s):  
New Hampshire ◽  
Discrete Choice ◽  
Choice Model ◽  
Operating Costs ◽  
Demand Model ◽  
Wood Stove ◽  
Home Heating ◽  
Fuel Burning ◽  
Discrete Choice Demand ◽  
Wood Stoves

This paper examines the acquisition of wood stoves by New Hampshire households through use of a utility-maximizing discrete choice model. The analysis is based on the hypothesis that wood stoves are acquired to decrease the monetary costs of home-heating. Operating costs associated with heating with conventional fuel burning capital and with a combination of conventional and wood stove heating capital are estimated. These operating costs are used to estimate probabilities of 1979 wood stove acquisition for particular types of New Hampshire households.

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