Enhancing marketing with engineering: Optimal product line design for heterogeneous markets

Michalek, Jeremy J.; Ebbes, Peter; Adıgüzel, Feray; Feinberg, Fred M.; Papalambros, Panos Y.

doi:10.1016/j.ijresmar.2010.08.001

Cited by 89 publications

(60 citation statements)

References 49 publications

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“…As customer preferences become significantly different among countries that could be obviously observed in a global market expansion into new and heterogeneous markets [10], [19], [23], different markets would require locally appropriate value chains. Such customer divergence could be caused from diversities regarding culture, custom, demographics, etc.…”

Section: A Strategic Movements From International Strategymentioning

confidence: 99%

A Dynamic View of Global Integration and Local Responsiveness Framework

Liao

2018

IJERMT

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Abstract-lobal-Integration and Local-Responsiveness (IR) framework with four pairs of external environment and appropriate international strategy types has contributed significantly to international business management. Nevertheless, the framework is still incomplete and lacks dynamic features. To deal with such limitations and enhance the theory, this paper, therefore, brings dynamic features regarding both environment and strategy into the IR grid. Under a dynamic capability angle with three steps of sensing, seizing and transforming [30], the dynamic global integration and local responsiveness framework -a new concept building for international business -would be explicated. Keywords-Dynamics, Global integration and local responsiveness framework, international business, environment forces I. INTRODUCTIONIn the booming era of globalization, international management, a part of international business (IB) field, appeared as a stream of strategic management. Unlike strategic management, international management mainly focuses on managing business operations in many countries. Differences regarding culture, policy, customer preferences, etc. among different markets are highly considered. The global-integration and local-responsiveness (IR) grid [6] -[8],[10],[11] is deemed as a most successful and well-known framework in international management. The framework introduces international strategy types that are relevant to possible types of external environment. There are four strategies including international strategy, multinational (or multi-domestic) strategy, global strategy, and transnational strategy. These strategic implementations perform well as being embedded in their most appropriate business environments.Notwithstanding the significant contribution to strategic management in general and international business in particular, IR theory is still criticized as a static view. Time process, in which environment could change and lead to inappropriacy of the current strategy, is not mentioned in the framework. Moreover, IR framework with its outside-in approach is unable to explain clearly and completely core questions of strategic management, how and why (international) firms' performances are different. It is not always the case that the firm changes due to changes of external environment. Internal factors such as the firm's resources [2] -[4], and capabilities [17], [28], [31] are important considerations in building strategy. The new strategy must be congruent with both outside and inside conditions. Prosperity just comes as a firm's capabilities, structure and external environment are, simultaneously, fit. IR grid, therefore, limits its application in reality. In pursuit of enhancing the original IR framework, we introduce a new concept of dynamic global integration and local responsiveness framework.

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Section: A Strategic Movements From International Strategymentioning

confidence: 99%

A Dynamic View of Global Integration and Local Responsiveness Framework

Liao

2018

IJERMT

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“…Another major advance in this field was the idea that consumers' preference structures were dynamic rather than static (due to variety seeking, learning, and fatigue), which calls for models that can capture the dynamics and respondents heterogeneity (for a review, see Wittink and Keil [188]. More recent artificial intelligence and engineering optimization approaches to product line optimization using conjoint analysis include Belloni et al [14], Wang et al [182], Luo [119], and Michalek et al [124]. Recently, some progress has been made by Luo et al [120] wherein they propose a hierarchical Bayesian structural equation model by incorporating subjective characteristics along with objective attributes in new product design.…”

Section: E1 Product Optimizationmentioning

confidence: 99%

“…More recently, alternative heuristics have been devised employing conjoint and choice models. Michalek et al [124] recently presented a unified methodology for product line optimization that coordinates positioning and design models to achieve realizable firm-level optima. Their procedure incorporates a general Bayesian representation of consumer preference heterogeneity, and manages attributes over a continuous domain to alleviate issues of combinatorial complexity using conjoint based consumer choice data.…”

Section: E4 Product Line Decisionsmentioning

confidence: 99%

An Interdisciplinary Review of Research in Conjoint Analysis: Recent Developments and Directions for Future Research

Agarwal

DeSarbo

Malhotra

et al. 2014

Cust. Need. and Solut.

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This review article provides reflections on the state of the art of research in conjoint analysis-where we came from, where we are, and some directions as to where we might go. We review key articles, mostly contemporary published since 2000, but some classic, drawn from the major marketing as well as various interdisciplinary academic journals to highlight important areas related to conjoint analysis research and identify more recent developments in this area. We develop an organizing framework that attempts to integrate various threads of research in conjoint methods and models. Our goal is to (a) emphasize the major developments in recent years, (b) evaluate these developments, and (c) to identify several potential directions for future research.

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“…In the area of diversity optimal level of trade markers, we can refer studies conducted by Michalek et al (2011), which they considered production lines design useful for many of new products by using optimization methods. Results indicated that optimal level of products in the production line increase profitability.…”

Section: Introductionmentioning

confidence: 99%

Determining the Optimum Brands Diversity of Cheese Using PSO (Case Study: Mashhad)

Dadrasmoghadam¹,

Ghorbani²,

Karbasi³

et al. 2016

Industrial Engineering and Management Systems

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In the current study, factors affecting cheese brands products in grocery stores were evaluated with an emphasis on diversity. The sample data were collected from Noushad and Pegah Milk Industry in 2015 and data were extracted, reviewed, and analyzed from 435 grocery stores in Mashhad using seemingly unrelated regression model and particle swarm optimization algorithm. Results showed that optimum amount of Kalleh product diversity is higher than other competitors in the market, and Kalleh UF diversity is 100 to 250 grams, and Kalleh UF diversity with weight of 300 to 500 grams is more than other modes of diversity, and Kalleh brand must remove tin cheese from the market. Sabah Brand also should eliminate its glass and creamy diversity from market, UF diversity is mostly welcomed in market.

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Enhancing marketing with engineering: Optimal product line design for heterogeneous markets

Cited by 89 publications

References 49 publications

A Dynamic View of Global Integration and Local Responsiveness Framework

A Dynamic View of Global Integration and Local Responsiveness Framework

An Interdisciplinary Review of Research in Conjoint Analysis: Recent Developments and Directions for Future Research

Determining the Optimum Brands Diversity of Cheese Using PSO (Case Study: Mashhad)

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