A preference choice model for the new product design problem

Juan Carlos Leyva López (), Jesús Jaime Solano Noriega (), Omar Ahumada Valenzuela () and Alma Montserrat Romero Serrano ()
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Juan Carlos Leyva López: Blvd. Lola Beltrán y Blvd. Rolando Arjona
Jesús Jaime Solano Noriega: Blvd. Lola Beltrán y Blvd. Rolando Arjona
Omar Ahumada Valenzuela: Blvd. Lola Beltrán y Blvd. Rolando Arjona
Alma Montserrat Romero Serrano: Blvd. Lola Beltrán y Blvd. Rolando Arjona

Operational Research, 2022, vol. 22, issue 4, No 21, 32 pages

Abstract: Abstract The design of new products is a matter of great importance that can directly affect profitability and competitiveness in modern companies. For this reason, the selection of a final product design needs to consider at least four factors of importance: anticipated market demand for the product design, preference heterogeneity among consumers, decision-maker preferences, and fuzzy preference information in the design criteria. This paper proposes a frequency-based preference choice model that considers all the above factors and can be used with algorithms that solve the optimal product design problem using the share of preference frequency criterion. The choice model introduced in this paper is based on the multicriteria outranking approach, and its predictive accuracy is optimized with genetic algorithms. The proposed genetic algorithm is compared with Interior Point OPTimizer, a software package for large-scale non-linear optimization. The experiment results demonstrate that the proposed method achieves near-optimal solutions in reasonable computational time and significantly outperforms the runtime compared algorithm.

Keywords: Multicriteria decision analysis; Choice models; Consumer behavior; New product design; Genetic algorithms; Outranking relations; 90C59 Approximation methods and heuristics in mathematical programming; 90B60 Marketing; advertising; 90B50 Management decision making; including multiple objectives (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s12351-021-00666-x

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