Analyzing and Predicting Heterogeneous Customer Preferences in China's Auto Market Using Choice Modeling and Network Analysis

Wang, Mingxian; Wei, Chen; Fu, Yan; Yang, Yong

doi:10.4271/2015-01-0468

Cited by 24 publications

(13 citation statements)

References 47 publications

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“…Social behavior and network analysis have also emerged as an effective technique in extending existing methods to model product preferences [45][46][47][48]. The improvements are definitely promising, but still lack incorporation of user-product interaction data in a quantitative manner.…”

Section: Methods Tomentioning

confidence: 99%

Cyber-Empathic Design: A Data-Driven Framework for Product Design

Ghosh

Olewnik

Lewis

et al. 2017

Journal of Mechanical Design

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A critical task in product design is mapping information from consumer to design space. Currently, this process largely depends on designers identifying and mapping psychological and consumer level factors to engineered attributes. In this way, current methodologies lack provision to test a designer's cognitive reasoning and could introduce bias when mapping from consumer to design space. In addition, current dominant frameworks do not include user–product interaction data in design decision making, nor do they assist designers in understanding why a consumer has a particular perception about a product. This paper proposes a framework—cyber-empathic (CE) design—where user–product interaction data are acquired using embedded sensors. To gain insight into consumer perceptions relative to product features, a network of psychological constructs is utilized. Structural equation modeling (SEM) is used as the parameter estimation and hypothesis testing technique, making the framework falsifiable in nature. To demonstrate effectiveness of the framework, a case study of sensor-integrated shoes is presented, where two models are compared—one survey-only and one using the cyber-empathic framework model. Covariance-based SEM (CB-SEM) is used to estimate the parameters and the fit indices. It is shown that the cyber-empathic framework results in improved fit over a survey-only SEM. This work demonstrates how low-level user–product interaction data can be used to understand and model user perceptions in a way that can support falsifiable design inference.

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Section: Methods Tomentioning

confidence: 99%

Cyber-Empathic Design: A Data-Driven Framework for Product Design

Ghosh

Olewnik

Lewis

et al. 2017

Journal of Mechanical Design

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show abstract

“…In the network shown in Figure 3, the size of a node is proportional to the degree centrality of the node (i.e., the number of links), which can be used to study the range of consideration on a product and its impact on market share (Wang et al. 2015). The node colors highlight the clusters of nodes (Clauset, Newman & Moore 2004), which represent the groups of vehicle models frequently considered together by many customers.…”

Section: Proposed Network-based Approachmentioning

confidence: 99%

Predicting product co-consideration and market competitions for technology-driven product design: a network-based approach

et al. 2018

Self Cite

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We propose a data-driven network-based approach to understand the interactions among technologies, products, and customers. Specifically, the approach enables both a qualitative understanding and a quantitative assessment of the impact of technological changes on customers’ co-consideration behaviors (decision of cross-shopping) and as a consequence the product competitions. The uniqueness of the proposed approach is its capability of predicting complex co-consideration relations of products as a network where both descriptive analyses (e.g., network statistics and joint correspondence analysis) and predictive models (e.g., multiple regressions quadratic assignment procedure) are employed. The integrated network analysis approach features three advantages: (1) It provides an effective visual representation of the underlying market structures; (2) It facilitates the evaluation of the correlation between customers’ consideration preferences and product attributes as well as customer demographics; (3) It enables the prediction of market competitions in response to potential technological changes. This paper demonstrates the proposed network-based approach in a vehicle design context. We investigate the impacts of the fuel economy-boosting technologies and the turbocharged engine technology on individual automakers as well as the entire auto industry. The case study provides vehicle engineers with insights into the change of market competitions brought by technological developments and thereby supports attribute decision-making in vehicle design.

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“…It also applies easily to markets themselves regardless of country or region. That is, any market in any industry will always have some consumers that are purely focused on price and will always have some consumers that are purely focused on value or other product quality or feature (Wang, Chen & Yang, 2015). This is why new car manufactures segment their products across the marketplace by various factors such as size, efficiency or features and so forth.…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

The Perception of Japanese Cars by Market: Saudi Arabia and The United States and The Value Versus Price Proposition

Fayad

2018

ABR

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This study has worked to explore the characteristics of the Saudi Arabia new car market in comparison to certain aspects of the United States new car market. Specifically, this study sought to identify the unique perspectives that Saudi new car consumers have towards Japanese produced new cars compared to those of US new car consumers towards Japanese produced vehicles. Furthermore, the added element of identifying whether one market privileged value above price or price above value as a rationale in making a purchase decision was also examined. A quantitative methodology was utilized in approaching this research problem. The specific quantitative method selected was descriptive statistics because of its ability to isolate unique attributes in the data and to support conclusions about those attributes by quantifying consumer opinion in one respect or another. This study found that Saudi new car consumers in fact do have a positive perception of Asian and specifically Japanese produced cars. This assertion is supported both through the data and the fact that a Japanese car is currently the top selling new car sold in the Kingdom. Additionally, the data also finds that Saudi new car consumers tend to privilege the consideration of overall value as defined by efficiency, quality and price as a rationale to arrive at a purchase decision. Likewise, this study finds that the US new car consumer, while operating in a much different new car marketplace, tends to privilege price rather than value in the arrival at a purchase decision. Finally, this study also notes that the recent approval of women being able to drive in the Kingdom is a manifestation of the success of the Crown Prince's Vision 2030 program. This development is indicative of the way in which the Vision 2030 objectives are remaking the Saudi economy, evidenced by the new car market, into a rich consumer-driven ecosystem capable of establishing the Kingdom as an international economic benchmark.

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Analyzing and Predicting Heterogeneous Customer Preferences in China's Auto Market Using Choice Modeling and Network Analysis

Cited by 24 publications

References 47 publications

Cyber-Empathic Design: A Data-Driven Framework for Product Design

Cyber-Empathic Design: A Data-Driven Framework for Product Design

Predicting product co-consideration and market competitions for technology-driven product design: a network-based approach

The Perception of Japanese Cars by Market: Saudi Arabia and The United States and The Value Versus Price Proposition

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