Heuristics for product-line design using conjoint analysis
Management Science
Designing a Family of Development-Intensive Products
Management Science
Product Line Selection and Pricing with Modularity in Design
Manufacturing & Service Operations Management
Product Variety and Capacity Investments in Congested Production Systems
Manufacturing & Service Operations Management
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We consider a product line design problem withmultiple attributes for a monopolist serving a market with two customer segments. Products are designed with quality type attributes for which more is always better than less. By considering multiple attributes, we derive a measure of multidimensional customer preference and offer insights into the optimal product design. When customers' preferences exhibit different orders in different attributes, our results show that products are differentiated horizontally where no one product is better than the other with respect to all attributes, and that there exists a region where the first-best solution for the monopolist is feasible despite the problem of cannibalization. Furthermore, single-product offering strategies are never optimal, so pooling of customer segments or reduction of the number of segments served will not occur.