Innovation in product form and function: customer perception of their value

July 12, 2014
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The goal of product design is to obtain the maximum effect with minimum cost in functionality and aesthetic beauty. Consumers are attracted to the designs that reflect their use behaviors and psychological responses more than they are to the simple visual representations. When product functions and qualities are similar across products, customers make their purchasing decision upon aesthetic form. Form presents a significant competitive factor that improves the value of a product. Overall, the purpose of this study is to examine the most important product design factors that affect the market share trends of mobile phone companies. Study uses product characteristicsfor 1,028 mobile phones released between 2003 and 2008 as a case study. The multiple linear regression analysis is used to select highly correlated variables that influence the market share, and Mallow’s Cp method is used to determine the best-fitting model. The Partial Regression Coefficients are used to evaluate the relative importance of design criteria. The nine mobile phone design features that affect the market share were identified, and the block form style is determined as the most important design factor. Using these approaches, this study demonstrates how investments should be directed in the next mobile phone design process.

Kim, T., Okudan, G. and Ertek, G. (2009) “Innovation in product form and function: customer perception of their value.” In: ASME 2009 International Design Engineering Technical Conferences & Computers and Information in Engineering Conference (IDETC/CIE 2009), San Diego, CA, USA

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