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Effective Design of Products/Services: An Approach Based on Integration of Marketing and Operations Management Decisions *
Author(s) -
Verma Rohit,
Thompson Gary M.,
Moore William L.,
Louviere Jordan J.
Publication year - 2001
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.2001.tb00957.x
Subject(s) - marketing , business , computer science , process management , marketing management , knowledge management , management science , operations research , economics , mathematics
This paper presents an integrated framework for designing profit‐maximizing products/ services, which can also be produced at reasonable operating difficulty levels. Operating difficulty is represented as a function of product and process attributes, and measures a firm's relative ease or difficulty in meeting customer demand patterns under specified operating conditions. Earlier optimum product design procedures have not considered. operational difficulty. We show that optimum profit, market share, cost, and product profiles are dependent on operating difficulty level. Empirical results from the pizza delivery industry demonstrate the value of the proposed Effective Product/Service Design approach.