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contributor authorGowharji, Waleed F.
contributor authorMichalek, Jeremy J.
contributor authorWhitefoot, Kate S.
date accessioned2024-12-24T19:14:03Z
date available2024-12-24T19:14:03Z
date copyright6/13/2024 12:00:00 AM
date issued2024
identifier issn1050-0472
identifier othermd_146_9_091706.pdf
identifier urihttp://yetl.yabesh.ir/yetl1/handle/yetl/4303550
description abstractConsumer choice models used in optimal product design typically ignore potential context effects by assuming the utility of each product is independent of the attributes of other products in the choice set. We characterize implications of context effects for profit-maximizing designs by deriving the first-order conditions of the design problem under alternative utility formulations, and we propose a utility function that incorporates context effects and has well-defined optimal design solutions for all products in the choice set. We then conduct a discrete choice survey experiment of automobile options and find statistically significant context-effect parameters and superior out-of-sample prediction when context-effect parameters are used in both logit and mixed logit models. These results suggest that context effects can be important in engineering design contexts and have the potential to affect optimal design differentiation.
publisherThe American Society of Mechanical Engineers (ASME)
titleImplications of Context Effects in Consumer Utility Models for Optimal Product Design and Differentiation
typeJournal Paper
journal volume146
journal issue9
journal titleJournal of Mechanical Design
identifier doi10.1115/1.4065478
journal fristpage91706-1
journal lastpage91706-8
page8
treeJournal of Mechanical Design:;2024:;volume( 146 ):;issue: 009
contenttypeFulltext


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