Engineering Commons^™

Fast And Frugal Heuristics For New Product Screening - Is Managerial Judgment "Good Enough?", Antonie J. Jetter, Fatima M. Albar

Engineering and Technology Management Faculty Publications and Presentations

Project screening in the fuzzy front-end of product development is dominantly based on managerial judgment, yet little is known about the quality of heuristic screening decisions. This research models three commonly discussed fast and frugal (F&F)heuristics for project screening (take-the-best, tallying and elimination-by-aspect) and explores their performance. An illustrative dataset of 52 new product development projects is used to compare the performance of F&F heuristics against that of regression models, which reflect compensatory judgment behaviour. The findings uncover a 'less is more' effect that justifies the use of simple heuristics in early stage product screening; two out of the three …