scholarly journals New product concept selection: an integrated approach using data envelopment analysis (DEA) and conjoint analysis (CA)

2014 ◽  
Vol 3 (1) ◽  
pp. 44 ◽  
Author(s):  
SaEd M. Salhieh ◽  
Mira Y. Al-Harris
Keyword(s):  
Data Envelopment Analysis ◽  
Conjoint Analysis ◽  
Perceived Value ◽  
New Product ◽  
Data Envelopment ◽  
Product Concept ◽  
Customer Perceived Value ◽  
Using Data ◽  
Product Concepts ◽  
Selection Of

New product concept development is considered to be a critical step and the main determinant for the success or failure of new product development. This paper introduces a new methodology for the evaluation and selection of new product concepts using Data Envelopment Analysis (DEA) and Conjoint Analysis (CA). The proposed methodology integrates customer perceived value of the new product concepts through the use of CA and uses this perceived value as a measure for the new concepts performance. In addition, the methodology takes into account the development burden that a company has to perform to bring the new concept into a state of market readiness. This development burden is estimated by determining two main factors, namely the burden to produce and the burden to sell the new product concept. The customer perceived value and the development burden are both used in DEA to evaluate the new product concepts resulting in the selection of the best product concept. The applicability of the proposed methodology is illustrated through a case study. Keywords: Product development, concept selection, data envelopment analysis, conjoint analysis.

Service-based vs. goods-based positioning of the product concept

2015 ◽  
Vol 27 (2) ◽  
pp. 247-255 ◽  
Author(s):  
Fabio Cassia ◽  
Marta Maria Ugolini ◽  
Nicola Cobelli ◽  
Liz Gill
Keyword(s):  
Hearing Aids ◽  
Perceived Value ◽  
Social Value ◽  
Content Type ◽  
Four Dimensions ◽  
Product Concept ◽  
Product Categories ◽  
Customer Perceived Value ◽  
Emotional Value ◽  
Product Concepts

Purpose – To counteract increasing competition and satisfy evolving customers’ needs, many firms are changing the positioning of their product concepts, from being product-based into service-based. Despite the increasing relevance of this shift, it is still unclear if this choice has a differential impact on customer perceived value. The purpose of this paper is to analyze customer perceived value for a firm’s product concept being positioned either as service-based or goods-based. Design/methodology/approach – An experiment was conducted using stimuli for two different product categories (hearing aids and bicycles) and measuring customers perceived value through the PERVAL scale’s four dimensions (quality value, emotional value, price value and social value). Findings – The results show that presenting the product concepts as service-based instead of good-based can enhance customer perceived value (in particular: quality, emotional and social value), but only if customers are not familiar with the product. Research limitations/implications – The study is based on one experiment and considers only two product categories. Further studies are needed to corroborate findings. Practical implications – The findings suggest that, under specific circumstances, the firm may improve customers’ attitude toward the product by emphasizing a service-based instead of a good-based positioning of the product concept. Originality/value – To our knowledge, this is the first research to evaluate the effects on customer perceived value of repositioning a product which has been traditionally goods-based (such a hearing aid and a bicycle) into service-based.

Identifying escalation of commitment in B2B new product development projects using data envelopment analysis

2014 ◽  
Vol 29 (3) ◽  
pp. 209-214 ◽  
Author(s):  
Naveen Donthu ◽  
Belgin Unal
Keyword(s):  
Data Envelopment Analysis ◽  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Development Projects ◽  
Data Envelopment ◽  
Escalation Of Commitment ◽  
Content Type ◽  
Development Area ◽  
Using Data

Purpose – Business managers are constantly faced with the decision to continue or abandon new product development projects. However, this type of decision may not be easy. These decisions are usually prone to bias of managers. Managers are known to escalate their commitment toward failed projects. It is also not easy to identify projects that are suffering from escalation of commitment. The purpose of this paper is to propose an objective escalation identification method. Design/methodology/approach – This paper proposes an objective escalation identification method using data envelopment analysis (DEA). The results from DEA are compared with those of subjective methods of identifying escalation. Findings – The objective estimate of escalation given by DEA was comparable to the subjective estimate of escalation given by the managers in the survey. Research limitations/implications – DEA is sensitive to outliers and managers should be careful in selecting projects that are to be included for comparison. DEA does not give statistical fit indices as it is an operational research based technique. Practical implications – DEA is an objective and automatic tool that makes the decision of managers easier. Managers can use this tool by inputting the output and input variables of their projects and then see which ones are escalated, therefore need to be abandoned. As a consequence, escalation of commitment and big losses can be prevented especially in new product development area. Originality/value – By using the proposed objective approach, escalation of commitment and associated big losses can be prevented especially in new product development area.

Data Envelopment Analysis (DEA) in the Psychological Sciences

2019 ◽  
Author(s):  
Jeffrey A. Shero ◽  
Sara Ann Hart
Keyword(s):  
Data Envelopment Analysis ◽  
Aggressive Behavior ◽  
Personality Traits ◽  
Educational Administration ◽  
Latent Variable ◽  
Organizational Management ◽  
Data Envelopment ◽  
Targeted Interventions ◽  
Component Skills ◽  
Using Data

Using methods like linear regression or latent variable models, researchers are often interested in maximizing explained variance and identifying the importance of specific variables within their models. These models are useful for understanding general ideas and trends, but often give limited insight into the individuals within said models. Data envelopment analysis (DEA), is a method with roots in organizational management that make such insights possible. Unlike models mentioned above, DEA does not explain variance. Instead, it explains how efficiently an individual utilizes their inputs to produce outputs, and identifies which input is not being utilized optimally. This paper provides readers with a brief history and past usages of DEA from organizational management, public health, and educational administration fields, while also describing the underlying math and processes behind said model. This paper then extends the usage of this method into the psychology field using two separate studies. First, using data from the Project KIDS dataset, DEA is demonstrated using a simple view of reading framework identifying individual efficiency levels in using reading-based skills to achieve reading comprehension, determining which skills are being underutilized, and classifying and comparing new subsets of readers. Three new subsets of readers were identified using this method, with direct implications leading to more targeted interventions. Second, DEA was used to measure individuals’ efficiency in regulating aggressive behavior given specific personality traits or related skills. This study found that despite comparable levels of component skills and personality traits, significant differences were found in efficiency to regulate aggressive behavior on the basis of gender and feelings of provocation.

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