This paper uses Design Science Research to build a method, entitled Market-Driven Modularity (MDM), intended to conceptually design modular product family structures that justify the economic benefits of customization. Through a series of detailed design and evaluation procedures, the proposed method is designed and further improved, as well as the theoretical framework underlying its development is adjusted. The main result of this research is the proposal of a holistic approach to product family design, particularly when the front-end issues are involved. In terms of contributions, two emerged from the abductive process of design: (i) the systematic integration of four classes of design problems prevalent in the literature; and (ii) the use of throughput for selecting the design parameters instances to compose the product family structure. Regarding the shortcomings, three arose from the artifact's evaluation: (i) the potential inability of modularity in dealing with aesthetic variety and low heterogeneity of customers' needs; (ii) the incompleteness of constructs, ‘functional requirements’ and ‘product family architecture’; and (iii) the assumption of not considering the uncertainty in the product family design. These findings counterpoint the tendency of Design Science Research in usually making practical rather than theoretical contributions.