Modeling Consideration Gives Strategic Design Insight for Addressing Diesel and Brand Perception

This paper explores consumer consideration and design response in the wake of a product scandal, namely the Volkswagen “clean diesel” scandal. It offers the novel contribution of designing for consideration, rather than final choice, with a linked market consideration and engineering model. The paper demonstrates how consideration modeling can be used to identify design strategy that capture lost consideration. A simulation study investigates three response design strategies: a design refresh by competitors; repricing by VW; and a new design by VW. The model used to investigate these scenarios includes data from a nation-wide survey conducted by Autolist that collected self-reported ratings of both VW and diesel consideration before and after the scandal. It also includes an engineering model that translates engineering variables (such as engine bore) into vehicle design attributes (such as fuel economy and rollover score). The case study finds that a design refresh by a competitor or a new vehicle design by VW can capture more consideration sets than a VW repricing strategy alone, suggesting the importance of coordinating both design and economic strategies. The approach demonstrates the usefulness of design-for-consideration as a strategic before/after scenario analysis tool in the wake of an event that triggers shifts consumers’ considerations.