Enhancing discrete choice demand modeling for Decision-Based Design

Henk Jan Wassenaar, Wei Chen*, Jie Cheng, Agus Sudjianto

*Corresponding author for this work

Research output: Contribution to conferencePaper

10 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages885-894
Number of pages10
StatePublished - Dec 1 2003
Event2003 ASME Design Engineering Technical Conference and Computers and Information in Engineering Conference - Chicago, IL, United States
Duration: Sep 2 2003Sep 6 2003

Other

Other2003 ASME Design Engineering Technical Conference and Computers and Information in Engineering Conference
CountryUnited States
CityChicago, IL
Period9/2/039/6/03

Fingerprint

Discrete Choice
Modeling
Customers
Product design
Attribute
Profitability
Decision making
Engines
Engineering
Design
Demand
Industry
Product Design
Engineering Design
Econometrics
Utility Function
Cross-validation
Justification
Cascade
Profit

Keywords

  • Customer utility
  • Decision-based design
  • Demand modeling
  • Discrete choice analysis
  • Engine design
  • Hierarchy of attributes
  • Kano method
  • Vehicle design

ASJC Scopus subject areas

  • Modeling and Simulation
  • Mechanical Engineering
  • Computer Science Applications
  • Computer Graphics and Computer-Aided Design

Cite this

Wassenaar, H. J., Chen, W., Cheng, J., & Sudjianto, A. (2003). Enhancing discrete choice demand modeling for Decision-Based Design. 885-894. Paper presented at 2003 ASME Design Engineering Technical Conference and Computers and Information in Engineering Conference, Chicago, IL, United States.
Wassenaar, Henk Jan ; Chen, Wei ; Cheng, Jie ; Sudjianto, Agus. / Enhancing discrete choice demand modeling for Decision-Based Design. Paper presented at 2003 ASME Design Engineering Technical Conference and Computers and Information in Engineering Conference, Chicago, IL, United States.10 p.
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Wassenaar, HJ, Chen, W, Cheng, J & Sudjianto, A 2003, 'Enhancing discrete choice demand modeling for Decision-Based Design' Paper presented at 2003 ASME Design Engineering Technical Conference and Computers and Information in Engineering Conference, Chicago, IL, United States, 9/2/03 - 9/6/03, pp. 885-894.

Enhancing discrete choice demand modeling for Decision-Based Design. / Wassenaar, Henk Jan; Chen, Wei; Cheng, Jie; Sudjianto, Agus.

2003. 885-894 Paper presented at 2003 ASME Design Engineering Technical Conference and Computers and Information in Engineering Conference, Chicago, IL, United States.

Research output: Contribution to conferencePaper

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Wassenaar HJ, Chen W, Cheng J, Sudjianto A. Enhancing discrete choice demand modeling for Decision-Based Design. 2003. Paper presented at 2003 ASME Design Engineering Technical Conference and Computers and Information in Engineering Conference, Chicago, IL, United States.