An experimental methodology for a fuzzy set preference model

A flexible fuzzy set preference model first requires approximate methodologies for implementation. Fuzzy sets must be defined for each individual consumer using computer software, requiring a minimum of time and expertise on the part of the consumer. The amount of information needed in defining sets must also be established. The model itself must adapt fully to the subject's choice of attributes (vague or precise), attribute levels, and importance weights. The resulting individual-level model should be fully adapted to each consumer. The methodologies needed to develop this model will be equally useful in a new generation of intelligent systems which interact with ordinary consumers, controlling electronic devices through fuzzy expert systems or making recommendations based on a variety of inputs. The power of personal computers and their acceptance by consumers has yet to be fully utilized to create interactive knowledge systems that fully adapt their function to the user. Understanding individual consumer preferences is critical to the design of new products and the estimation of demand (market share) for existing products, which in turn is an input to management systems concerned with production and distribution. The question of what to make, for whom to make it and how much to make requires an understanding of the customer's preferences and the trade-offs that exist between alternatives. Conjoint analysis is a widely used methodology which de-composes an overall preference for an object into a combination of preferences for its constituent parts (attributes such as taste and price), which are combined using an appropriate combination function. Preferences are often expressed using linguistic terms which cannot be represented in conjoint models. Current models are also not implemented an individual level, making it difficult to reach meaningful conclusions about the cause of an individual's behavior from an aggregate model. The combination of complex aggregate models and vague linguistic preferences has greatly limited the usefulness and predictive validity of existing preference models. A fuzzy set preference model that uses linguistic variables and a fully interactive implementation should be able to simultaneously address these issues and substantially improve the accuracy of demand estimates. The parallel implementation of crisp and fuzzy conjoint models using identical data not only validates the fuzzy set model but also provides an opportunity to assess the impact of fuzzy set definitions and individual attribute choices implemented in the interactive methodology developed in this research. The generalized experimental tools needed for conjoint models can also be applied to many other types of intelligent systems

A fuzzy set preference model for market share analysis

Consumer preference models are widely used in new product design, marketing management, pricing, and market segmentation. The success of new products depends on accurate market share prediction and design decisions based on consumer preferences. The vague linguistic nature of consumer preferences and product attributes, combined with the substantial differences between individuals, creates a formidable challenge to marketing models. The most widely used methodology is conjoint analysis. Conjoint models, as currently implemented, represent linguistic preferences as ratio or interval-scaled numbers, use only numeric product attributes, and require aggregation of individuals for estimation purposes. It is not surprising that these models are costly to implement, are inflexible, and have a predictive validity that is not substantially better than chance. This affects the accuracy of market share estimates. A fuzzy set preference model can easily represent linguistic variables either in consumer preferences or product attributes with minimal measurement requirements (ordinal scales), while still estimating overall preferences suitable for market share prediction. This approach results in flexible individual-level conjoint models which can provide more accurate market share estimates from a smaller number of more meaningful consumer ratings. Fuzzy sets can be incorporated within existing preference model structures, such as a linear combination, using the techniques developed for conjoint analysis and market share estimation. The purpose of this article is to develop and fully test a fuzzy set preference model which can represent linguistic variables in individual-level models implemented in parallel with existing conjoint models. The potential improvements in market share prediction and predictive validity can substantially improve management decisions about what to make (product design), for whom to make it (market segmentation), and how much to make (market share prediction)

Simulation of Water Distribution Systems

In this paper a software package offering a means of simulating complex water distribution systems is described. It has been developed in the course of our investigations into the applicability of neural networks and fuzzy systems for the implementation of decision support systems in operational control of industrial processes with case-studies taken from the water industry. Examples of how the simulation package have been used in a design and testing of the algorithms for state estimation, confidence limit analysis and fault detection are presented. Arguments for using a suitable graphical visualization techniques in solving problems like meter placement or leakage diagnosis are also given and supported by a set of examples

Fuzzy finite element model updating of a laboratory wind turbine blade for structural modification detection

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