scholarly journals Designing profitable joint product–service channels: case study on tablet and eBook markets

2019 ◽  
Vol 5 ◽  
Author(s):  
Namwoo Kang ◽  
Fred M. Feinberg ◽  
Panos Y. Papalambros

Consumers’ choice of services and the product platforms that deliver them, such as apps and mobile devices, or eBooks and eReaders, are becoming inextricably interrelated. Market viability demands that product–service combinations be compatible across multiple producers and service channels, and that the producers’ profitability must include both service and product design. Some services may be delivered contractually or physically, through a wider range of products than others. Thus, optimization of producers’ contingent products, services, and channel decisions becomes a combined decision problem. This article examines three common product–service design scenarios:exclusive,non-exclusive asymmetric, andnon-exclusive symmetric. An enterprise-wide decision framework has been proposed to optimize integrated services and products for each scenario. Optimization results provide guidelines for strategies that are mutually profitable for partner–competitor firms. The article examines an example of an eBook service and tablet, with market-level information from four firms (Amazon, Apple, Barnes & Noble, and Google) and conjoint-based product–service choice data to illustrate the proposed framework using a scalable sequential optimization algorithm. The results suggest that firms in market equilibrium can markedly differ in the services they seek to provide via other firms’ products and demonstrate the interrelationship among marketing, services, and product design.

Author(s):  
Lin He ◽  
Christopher Hoyle ◽  
Wei Chen ◽  
Jiliang Wang ◽  
Bernard Yannou

Usage Context-Based Design (UCBD) is an area of growing interest within the design community. A framework and a step-by-step procedure for implementing consumer choice modeling in UCBD are presented in this work. To implement the proposed approach, methods for common usage identification, data collection, linking performance with usage context, and choice model estimation are developed. For data collection, a method of try-it-out choice experiments is presented. This method is necessary to account for the different choices respondents make conditional on the given usage context, which allows us to examine the influence of product design, customer profile, usage context attributes, and their interactions, on the choice process. Methods of data analysis are used to understand the collected choice data, as well as to understand clusters of similar customers and similar usage contexts. The choice modeling framework, which considers the influence of usage context on both the product performance, choice set and the consumer preferences, is presented as the key element of a quantitative usage context-based design process. In this framework, product performance is modeled as a function of both the product design and the usage context. Additionally, usage context enters into an individual customer’s utility function directly to capture its influence on product preferences. The entire process is illustrated with a case study of the design of a jigsaw.


Author(s):  
Tomohiko Sakao ◽  
John Gero ◽  
Hajime Mizuyama

AbstractProduct/service systems (PSSs) are increasingly found in markets, and more resources are being invested in PSS design. Despite the substantial research into PSS design, the current literature exhibits an incomplete understanding of it as a cognitive activity. This article demonstrates that the methods used to analyze product designers’ cognitive behavior can be used to produce comparable and commensurable results when analyzing PSS designers. It also generates empirical grounding for the development of hypotheses based on a cognitive study of a PSS design session in a laboratory environment using protocol analysis. This study is a part of a larger project comparing PSS design with product design. The results, which are based on the function–behavior–structure coding scheme, show that PSS design, when coded using this scheme, can be quantitatively compared with product design. Five hypotheses were developed based on the results of the study of this design session concerning where and how designers expend their cognitive design effort. These hypotheses can be used to design experiments that test them and provide the grounding for a fuller understanding of PSS design.


2021 ◽  
pp. 107-116
Author(s):  
Bilgen Tuncer Manzakoglu ◽  
◽  
Renk Dimli Oraklibel ◽  

Industrial design as profession has begun to expand its scope in business practices with the recent developments in design management, design thinking, and technology. However, curricula of industrial design studio remain traditional and mainly focuses on designing products. In fact, design management and design thinking go beyond product design and expand design’s scope to establishing business strategies, design innovation and service design by positioning humans and their needs at the center. Besides, the technological shift happened through Industry 4.0 enables to adapt IT hardware into systems, products and services, and make them smart and unified. To keep up with these paradigm changes and prepare our students to the rapidly changing business environment, we initiated a Smart Product Service System (Smart-PSS) design project with the 3rd-grade students of Bahçeşehir University in the 2019-2020 Spring semester during which online education had just become a part of our lives. In this article, we present three student projects as case studies of Smart-PSSs designed in three stages as system design, product design, and interface design. As a result, students gain a more holistic approach toward the design process, acknowledge the new expansions of industrial design, and its transformative role for businesses.


1981 ◽  
Vol 45 (3) ◽  
pp. 17-37 ◽  
Author(s):  
Paul E. Green ◽  
J. Douglas Carroll ◽  
Stephen M. Goldberg

This paper describes some of the features of POSSE (Product Optimization and Selected Segment Evaluation), a general procedure for optimizing product/service designs in marketing research. The approach uses input data based on conjoint analysis methods. The output of consumer choice simulators is modeled by means of response surface techniques and optimized by different sets of procedures, depending upon the nature of the objective function.


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