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Choice model

Wayne State University Theses

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A Customer Choice Modeling Framework For Assortment Planning Of Configurable Products In Automotive Industry, Farah Dubaisi Jan 2015

A Customer Choice Modeling Framework For Assortment Planning Of Configurable Products In Automotive Industry, Farah Dubaisi

Wayne State University Theses

Due to the increased competition in the auto industry, proliferation of the vehicle models and increased customer need for choice and customization, it has become more critical than ever to offer a variety of features and customization flexibility while at the same time restraining and, even better, cutting down the costs. Product complexity, in the automotive industry, can be measured by the size of the assortment offered, i.e., set of vehicle configurations a customer can choose from (e.g., for a given model of a brand). While complexity fosters growth with increased alignment of product characteristics and customer needs, it results …