Optimal Product Configuration (Automobile)

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Economies of scale

Total Benefit

Total Income

Costs

Customer Type 1, high income urban

Customer Type 2, medium income rural

Property 1, e.g. savety

Model 1

Production Costs

Property 2, e.g. prestige

Property 3, e.g. economical

Property 4, e.g. spacious

Model 2

Feature 1

Feature 2

Feature 3

Feature 4

Feature 5

Feature 6

Feature 7

Word of Mouth Effect Customer Type 1

Marketing Costs

Lower price with lower margin