Utility: the key to understanding markets

Article Abstract:

Mathematical models based on the utility concept are important tools for understanding market dynamics and for developing products which fit existing market characteristics. One such approach, the Optima Consumer Choice model, assumes that individuals buy products mainly to maximize net utility, that is, to meet a particular need. It can be used to identify and fill gaps in companies' brand portfolios and as an excellent starting point for making management decisions.

Consumer behavior

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Product design and the pricing decision: a sequential approach

Article Abstract:

The compositional model, combined with techniques for measuring consumer price perceptions, offers an effective approach to determining a product's configuration and its market and revenue potential. This approach can help product managers identify the most desirable combination of 'base' and 'optional' features of a product and the price level at which both revenue and consumer interest are maximized.

Product development

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Product design and the pricing decision: a sequential approach

Article Abstract:

An effective market survey should involve the analysis of valuable information from respondents who did not express that they would definitely buy the finished product. Such information will enable product designers to identify the smallest set of options that will appeal to a broader customer base. It will also allow them to meet the needs of the most demanding customers.

Methods, Analysis, Industrial design, Market surveys

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