Platform and product design for markets with quality and feature sensitive customers

To cost effectively offer distinctive products to the market, many companies resort to product platforms, defined as a common base from which a set of products are derived. Yet, the interaction between both types of decisions (product development versus product portfolio design) is poorly understood. Indeed, operational aspects (such as platform production costs and customization costs) and marketing aspects (e.g., the customer's sensitivity to product quality and features, along with his price sensitivity) jointly impact the optimal product portfolio, and the optimal platform design.