Alternative Selection Method For New Product Development Considering Behavioral Factors Of Decision Makers

From planned economy to market economy, the market is becoming more and more open. At the same time, the competition between the enterprises is becoming fiercer and fiercer. In other words the competition between enterprises is actually the competition between enterprise products. Therefore, if an enterprise wants to survive in the fierce market competition, it must do the new product development work well and develop better products than its competitors. To sum up, new product development is an important enterprise management activity which can decide success or failure of the enterprise future management; and new product development alternative decision is an important part of new product development activities, which can decide success or failure of new product development project.As we all know, new product development is an activity that needs to consume the enterprise resource. How to do a good job for new product development alternative selection and avoid the waste of the enterprise resource is the enterprise decision makers need to face an important management decision problem. So far, new product development alternative selection methods often ignore the impact of the behavior factor of decision makers to the decision result. The main content of this paper is to do some exploratory research on this field.The significance of this paper is:First, applying prospect theory is to the new product development issue, mining prospect theory great practical application value. Second, build the model for new product development alternative selection problem and hope to provide some references for enterprise's practices.The main content of this paper includes the following three aspects:(1) Give an alternative selection method for innovative new product development considering behavioral factors of decision makers. According to the characteristics of innovative new products, getting the reference point and building an evaluation index system for innovative new product development alternatives. Then, applying the prospect theory to calculate the prospect value of each alternative and choose the alternative of maximum prospect value as the best alternative.(2) Give an alternative selection method for updated new product development considering behavioral factors of decision makers. According to the characteristics of updated new product, getting the reference point and building an evaluation index system for updated new product development alternatives. Then, applying the prospect theory to calculate the prospect value of each alternative and choose the alternative of maximum prospect value as the best alternative.(3) Give an alternative selection method for improved new products development considering behavioral factors of decision makers. According to the characteristics of improved new product, getting the reference point and calculating the expected return of every alternative and assessing the new products development project risk. Then, applying the prospect theory to calculate the prospect value of each alternative and choose the alternative of maximum prospect value as the best alternative.