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A web-based methodology for product design evaluation and optimisation

Authors:

Xavier Drèze
Fred Zufryden

Publisher:

Journal of the Operation Research Society
Vol. 49, 1998, 1034-1043

Abstract:

The authors have developed a methodology that takes advantages of the World Wide Web to analyze and develop optimal new product designs. This paper describes the methodology and illustrates its application to a case study involving the design of an actual Web site where music CDs are sold.

The proposed methodology has the following features: (a) it is based on a design inspired by conjoint analysis; (b) it involves unobtrusive electronic measurement of the actual behavior of Web users who remain undisturbed by experimental factors; and (c) it utilizes an integer programming approach to seek optimal Web site configurations. The methodology uses limited dependent variable methods to develop response models that provide the basis for the development of objective functions for an optimization model. The optimization model can consider either single or multiple objective functions by using a Pareto optimum approach.