New algorithms for product positioning

New algorithms for product positioning

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Article ID: iaor19992425
Country: Netherlands
Volume: 104
Issue: 1
Start Page Number: 154
End Page Number: 174
Publication Date: Jan 1998
Journal: European Journal of Operational Research
Authors: , , ,
Keywords: programming: branch and bound
Abstract:

Two new algorithms are proposed for the problem of positioning a new product in attribute space in order to attract the maximum number of consumers. Each consumer is assumed to choose the existing or new product closest to his ideal point according to the Euclidean norm. The first algorithm is based on finding a finite number of intersection points of indifference surfaces. The second algorithm proceeds by considering sets of balls bounded by indifference surfaces and finding points belonging to the largest weighted number of them. Problems with up to 500 consumers groups, 40 existing products and 20 attributes are solved exactly.

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