Reference groups and product line decisions: An experimental investigation of limited editions and product proliferation

Some luxury goods manufacturers offer limited editions of their products, whereas some others market multiple product lines. Researchers have found that reference groups shape consumer evaluations of these product categories. Yet little empirical research has examined how reference groups affect the product line decisions of firms. Indeed, in a field setting it is quite a challenge to isolate reference group effects from contextual effects and correlated effects. In this paper, we propose a parsimonious model that allows us to study how reference groups influence firm behavior and that lends itself to experimental analysis. With the aid of the model we investigate the behavior of consumers in a laboratory setting where we can focus on the reference group effects after controlling for the contextual and correlated effects. The experimental results show that in the presence of strong reference group effects, limited editions and multiple products can help improve firms' profits. Furthermore, the trends in the purchase decisions of our participants point to the possibility that they are capable of introspecting close to two steps of thinking at the outset of the game and then learning through reinforcement mechanisms. © 2010 INFORMS.

The development of an advanced ship evacuation simulation software product and associated large scale testing facility for the collection of human shipboard behaviour data

When designing a new passenger ship or modifying an existing design, how do we ensure that the proposed design and crew emergency procedures are safe from an evacuation point of view? In the wake of major maritime disasters such as the Herald of Free Enterprise and the Estonia and in light of the growth in the numbers of high density, high-speed ferries and large capacity cruise ships, issues concerned with the evacuation of passengers and crew at sea are receiving renewed interest. In the maritime industry, ship evacuation models offer the promise to quickly and efficiently bring evacuation considerations into the design phase, while the ship is "on the drawing board". maritimeEXODUS-winner of the BCS, CITIS and RINA awards - is such a model. Features such as the ability to realistically simulate human response to fire, the capability to model human performance in heeled orientations, a virtual reality environment that produces realistic visualisations of the modelled scenarios and with an integrated abandonment model, make maritimeEXODUS a truly unique tool for assessing the evacuation capabilities of all types of vessels under a variety of conditions. This paper describes the maritimeEXODUS model, the SHEBA facility from which data concerning passenger/crew performance in conditions of heel is derived and an example application demonstrating the models use in performing an evacuation analysis for a large passenger ship partially based on the requirements of MSC circular 1033.

Modelling the effect of temperature on product reliability

Reliability of electronic parts is a major concern for many manufacturers, since early failures in the field can cost an enormous amount to repair - in many cases far more than the original cost of the product. A great deal of effort is expended by manufacturers to determine the failure rates for a process or the fraction of parts that will fail in a period of time. It is widely recognized that the traditional approach to reliability predictions for electronic systems are not suitable for today's products. This approach, based on statistical methods only, does not address the physics governing the failure mechanisms in electronic systems. This paper discusses virtual prototyping technologies which can predict the physics taking place and relate this to appropriate failure mechanisms. Simulation results illustrate the effect of temperature on the assembly process of an electronic package and the lifetime of a flip-chip package.

Managing the supply side for product development in China: a Guanxi network approach

Based on the IMP research tradition this paper regards relationships and networks as key issues in the product development and supply management agenda. Within business networks, co-development is only possible to be analysed when emphasis is placed on interdependences and interactive relationships. Co-development usually implies close relationships that allow companies to rely on each other's resources. Close relationships imply interdependences, which may improve companies' technical and product development. By looking at the actual interactions - between a UK company and its Chinese suppliers - that led to an innovative solution and a successful product launch, evolving relationship patterns are identified and analysed in a case study. Both the literature review and case study findings highlight the importance of the 'guanxi' concept (meaning interpersonal relationships in Mandarin) when analysing business-to-business networks in China. Hence, it is suggested that guanxi-based thinking and acting should be incorporated into the interaction model when considering business networking that embrace China. 'Guanxi' broadens the validity of the interaction model, in terms of geographical proximity, and deepens its theoretical base. The case study provides valuable insights for supply management under a product development context in China. In practice, the main point of interest is that Chinese suppliers are important 'resource' providers as well as 'network' providers. Hence, it is suggested that guanxi practice should be reflected into theoretical developments.

A life cycle model for product-service systems design

Western manufacturing companies are developing innovative ways of delivering value that competes with the low cost paradigm. One such strategy is to deliver not only products, but systems that are closely aligned with the customer value proposition. These systems are comprised of integrated products and services, and are referred to as Product-Service Systems (PSS). A key challenge in PSS is supporting the design activity. In one sense, PSS design is a further extension of concurrent engineering that requires front-end input from the additional downstream sources of product service and maintenance. However, simply developing products and service packages is not sufficient: the new design challenge is the integrated system. This paper describes the development of a PSS data structure that can support this integrated design activity. The data structure is implemented in a knowledge base using the Protégé knowledge base editor.

Advanced product development integration architecture: an out-of-box solution to support distributed production networks

This paper presents novel collaboration methods implemented using a centralized client/server product development integration architecture, and a decentralized peer-to-peer network for smaller and larger companies using open source solutions. The product development integration architecture has been developed for the integration of disparate technologies and software systems for the benefit of collaborative work teams in design and manufacturing. This will facilitate the communication of early design and product development within a distributed and collaborative environment. The novelty of this work is the introduction of an‘out-of-box’ concept which provides a standard framework and deploys this utilizing a proprietary state-of-the-art product lifecycle management system (PLM). The term ‘out-of-box’ means to modify the product development and business processes to suit the technologies rather than vice versa. The key business benefits of adopting such an approach are a rapidly reconfigurable network and minimal requirements for software customization to avoid systems instability

An industrial implementation of a methodology for the optimisation of product design tolerances

Today, the key to commercial success in manufacturing is the timely development of new products that are not only functionally fit for purpose but offer high performance and quality throughout their entire lifecycle. In principle, this demands the introduction of a fully developed and optimised product from the outset. To accomplish this, manufacturing companies must leverage existing knowledge in their current technical, manufacturing and service capabilities. This is especially true in the field of tolerance selection and application, the subject area of this research. Tolerance knowledge must be readily available and deployed as an integral part of the product development process. This paper describes a methodology and framework,currently under development in a UK manufacturer, to achieve this objective.

Evaluating the SEVIRI Fire Thermal Anomaly Detection Algorithm across the Central African Republic Using the MODIS Active Fire Product

Satellite-based remote sensing of active fires is the only practical way to consistently and continuously monitor diurnal fluctuations in biomass burning from regional, to continental, to global scales. Failure to understand, quantify, and communicate the performance of an active fire detection algorithm, however, can lead to improper interpretations of the spatiotemporal distribution of biomass burning, and flawed estimates of fuel consumption and trace gas and aerosol emissions. This work evaluates the performance of the Spinning Enhanced Visible and Infrared Imager (SEVIRI) Fire Thermal Anomaly (FTA) detection algorithm using seven months of active fire pixels detected by the Moderate Resolution Imaging Spectroradiometer (MODIS) across the Central African Republic (CAR). Results indicate that the omission rate of the SEVIRI FTA detection algorithm relative to MODIS varies spatially across the CAR, ranging from 25% in the south to 74% in the east. In the absence of confounding artifacts such as sunglint, uncertainties in the background thermal characterization, and cloud cover, the regional variation in SEVIRI's omission rate can be attributed to a coupling between SEVIRI's low spatial resolution detection bias (i.e., the inability to detect fires below a certain size and intensity) and a strong geographic gradient in active fire characteristics across the CAR. SEVIRI's commission rate relative to MODIS increases from 9% when evaluated near MODIS nadir to 53% near the MODIS scene edges, indicating that SEVIRI errors of commission at the MODIS scene edges may not be false alarms but rather true fires that MODIS failed to detect as a result of larger pixel sizes at extreme MODIS scan angles. Results from this work are expected to facilitate (i) future improvements to the SEVIRI FTA detection algorithm; (ii) the assimilation of the SEVIRI and MODIS active fire products; and (iii) the potential inclusion of SEVIRI into a network of geostationary sensors designed to achieve global diurnal active fire monitoring.

Abundance of a chlorophyll a precursor and the oxidation product hydroxychlorophyll a during seasonal phytoplankton community progression in the Western English Channel

This study presents the first in-situ measurements of the chlorophyll a oxidation product, hydroxychlorophyll a as well as the chlorophyll a precursor, chlorophyll aP276 conducted over an annual cycle. Chlorophyll a oxidation products, such as hydroxychlorophyll a may be associated with the decline of algal populations and can act as an initial step in the degradation of chlorophyll a into products which can be found in the geochemical record, important for studying past climate change events. Here, hydroxychlorophyll a and chlorophyll aP276 were measured at the long-term monitoring station L4, Western Channel Observatory (UK, www.westernchannelobservatory.org) over an annual cycle (2012). Weekly measurements of phytoplankton species composition and abundance enabled detailed analysis of possible sources of hydroxychlorophyll a. Dinoflagellates, 2 diatom species, the prymnesiophyte Phaeocystis spp. and the coccolithophorid Emiliania huxleyi were all associated with hydroxychlorophyll a occurrence. However, during alternate peaks in abundance of the diatoms, no association with hydroxychlorophyll a occurred, indicating that the oxidation of chlorophyll a was dependant not only on species but also on additional factors such as the mode of mortality, growth limiting factor (i.e. nutrient concentration) or phenotypic plasticity. Surface sediment samples contained 10 times more hydroxychlorophyll a (relative to chlorophyll a) than pelagic particulate samples, indicating that more chlorophyll a oxidation occurred during sedimentation or at the sediment–water interface, than in the pelagic environment. In addition, chlorophyll aP276 correlated with chl-a concentration, thus supporting its assignment as a chl-a precursor.