Effect of the Number of Brand Alternatives on Demand Uncertainty of Really New Product

2017 ◽  
Vol 32 (3) ◽  
pp. 1-23
Author(s):  
Yongbum Kim ◽  
Jayoung Choi
Keyword(s):  
Demand Uncertainty ◽  
New Product ◽  
On Demand

Reliability and Accuracy of Bootstrap and Monte Carlo Methods for Demand Distribution Modeling

2011 ◽  
Author(s):  
Swithin S. Razu ◽  
Shun Takai
Keyword(s):  
Monte Carlo ◽  
Product Development ◽  
Conjoint Analysis ◽  
New Product Development ◽  
Demand Uncertainty ◽  
New Product ◽  
Product Development Process ◽  
Choice Data ◽  
Product Concept ◽  
Demand Distribution

Estimation of demand is one of the most important tasks in new product development. How customers come to appreciate and decide to purchase a new product impacts demand and hence profit of the product. Unfortunately, when designers select a new product concept early in the product development process, the future demand of the new product is not known. Conjoint analysis is a statistical method that has been used to estimate a demand of a new product concept from customer survey data. Although conjoint analysis has been increasingly incorporated in design engineering as a method to estimate a demand of a new product design, it has not been fully employed to model demand uncertainty. This paper demonstrates and compares two approaches that use conjoint analysis data to model demand uncertainty: bootstrap of respondent choice data and Monte Carlo simulation of utility estimation errors. Reliability of demand distribution and accuracy of demand estimation are compared for the two approaches in an illustrative example.

Inventory Management in Competition Environment Based on Customer Service

2011 ◽  
Vol 58-60 ◽  
pp. 2141-2146
Author(s):  
Xiao Di ◽  
Bao Xing
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Customer Service ◽  
Inventory Management ◽  
Demand Uncertainty ◽  
Management Policy ◽  
Management Decision ◽  
Inventory Level ◽  
On Demand ◽  
Optimal Policies

Based on demand uncertainty, the paper studies inventory management decision of two competing supply chains from the perspective of customer service. The paper mainly discusses two different inventory strategies, which are widely used, that is, consignment stock and VMI, and analyzes the optimal policies under three competitive scenarios, which consist of using consignment stock in both supply chains (CC mode), using VMI in both supply chains (DD mode), and using consignment stock in one supply chain but VMI another (VC mode). The paper compares equilibrium inventory level and profit of supply chain in different competitive modes, and concludes that both supply chains use VMI is equilibrium, which means that when manufacturers have right to choose inventory management policy, they prefer VMI. But it isn’t paradoxical with the phenomenon that consignment stock is common in reality, because manufacturers are forced to use consignment by retailer’s channel power.

Customer-Base Concentration, Investment, and Profitability: The U.S. Government as a Major Customer

2019 ◽  
Vol 95 (1) ◽  
pp. 101-131 ◽  
Author(s):  
Daniel A. Cohen ◽  
Bin Li
Keyword(s):  
Demand Uncertainty ◽  
Efficiency Gains ◽  
Differential Impact ◽  
Customer Base ◽  
On Demand ◽  
Specific Investments ◽  
Firm Profitability ◽  
Corporate Customers ◽  
The U.S ◽  
Jel Classifications

ABSTRACT We examine whether customer-base concentration has a differential impact on profitability for firms contracting with major government customers versus firms contracting with major corporate customers. We document that firm profitability increases with the concentration of major government customers, but decreases with the concentration of major corporate customers. We attribute the contrasting results to the differential impact of major government and corporate customers on demand uncertainty. Specifically, firms contracting with major government customers face lower demand uncertainty that enables them to realize more efficiency gains from customer-specific investments, whereas firms contracting with major corporate customers are exposed to higher demand uncertainty that reduces the efficiency of customer-specific investments. Overall, our study suggests that major government customers are unique and important in the composition of customer base, and they impact firm outcomes in a significantly different way than major corporate customers. JEL Classifications: M41; L25; G14; H57.

scholarly journals An Assessment of The Demand for New Products of Fast Moving Consumer Goods (FMCG)

2018 ◽  
Vol 9 (2) ◽  
pp. 18 ◽  
Author(s):  
R. Agus Trihatmoko ◽  
Saud Napitupulu ◽  
Dian Indri Purnamasari ◽  
Hudi Kurniawanto
Keyword(s):  
Consumer Goods ◽  
Fast Moving ◽  
New Products ◽  
Deep Understanding ◽  
New Product ◽  
Data Interpretation ◽  
On Demand ◽  
Fast Moving Consumer Goods ◽  
Strategy Planning ◽  
Product Segmentation

Assessing the approximation of demand for a new product is a complex work, while current research on demand assessment is limited. The purpose of this paper is to identify, describe, and obtain deep understanding comprehensively about: (1) the assessment of demand by principal companies in order to create or innovate new products; and (2) buyer responses regarding the assessment on demand aspect concerning on new product buying decision. This research uses qualitative method by phenomenology theoretical design that is: Fast Moving Consumer Goods (FMCG) principal within new product innovation, and FMCG wholesaler phenomenon within transactional buying-selling process between wholesalers and distributors. Data interpretation for this research is constructivism philosophy that is based on the location where buyer and seller, and companies do exist at traditional trade. The result identifies demand aspects those are demand of competitor product and categorical product, product segmentation, and demand of the product itself is: (1) several aspects that are valued by marketers in new product innovations. Aspects of demand are assessed by marketers for marketing mix strategy planning; and (2) the essences and buyer responses. Demand aspects are assessed by the buyer to estimate level of demand of new product within competition at internal or external condition.

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