Supply and demand patterns have dynamically changed in recent years due to the increased global competition. Firms have selected quality and price as competition components and have accomplished corporate innovation in order to achieve competitive advantage. Innovation has been recognized as the way to enhance corporate competitiveness and to continuously grow in churning global competition (Homburg, Schwemmle, & Kuehnl, 2015; Moon, Miller, & Kim, 2013). Although innovation becomes a common means to improve a firm’s performance, it has the limitation of achieving a firm’s strategic goal as a long-term strategy. Thus, firms need to have more fine-grained strategies to survive in dynamically changing business environment, such as design innovation (Moon et al., 2015). For example, Apple has produced its products (e.g., iPhone, iPod and iPad) focusing on innovative product design to influence consumer purchase intention. Design can lead to a distinct competitive advantage (Bolch, 1995). Furthermore, product design can be used by firms to create amd enhance brand recognition, as well as to increase firms’ value (Mozota, 2002). Brand experience positively influences customer satisfaction and brand loyalty (Brakus, Schmitt, & Zarantonello, 2009). Thus, we assume that design experience and product innovation have a positive effect on consumers’ purchase behavior and customer value.
However, while the importance of design innovation is recognized, it is not easy to apply the design innovation to marketing due to the lack of relevant research in the field. In fact, relevant research on the influence of innovative new product design and design experience on customer value is scarce. Therefore, the purpose of this study is to investigate how brand experiences and innovative product design affect customer value.
Successful innovation is accomplished by identifying customer needs first and developing innovative products to satisfy their needs (Hauser et al., 2006). Design is seen as the core of innovation and the moment when a new object is conceived of, devised, and shaped in a prototype form (Landwehr, Wentzel, & Herrmann, 2013). Verganti (2008) studies the concept of "user-centered design," which describes how companies can use design to improve their relationships with users and develop a better understanding of user needs. In this research, design innovation has three dimensions: aesthetic attributes, feature attributes, and emotional attributes. First, aesthetic attributes focus on the product design itself. The aesthetic appearance of a product has a large bearing on its potential market share (Liu, 2003). Second, feature attributes focus on the product features and functional aspects that are required to satisfy customer needs. Feature attributes enable performance that can give results in the operating process (Crawford & Di Benedetto, 2007). Third, emotional attributes focus on consumers’ feeling when they purchase a new product to satisfy their needs. Emotional attributes are generated by consumers’ experience when they purchase a new product in the store. The more the product design satisfies customer's emotional needs, the more customers’ attention is attracted to the purchase of a product (Mokarian, 2007).
A product satisfying the aesthetic, feature, and emotional attributes through design innovation provides a new experience to customers (Desmet & Hekkert, 2007). A consumer’s purchase decision making is affected by both direct and indirect experience of using the product and the function of product (Brakus, Schmitt, & Zarantonello, 2009). Therefore, a designer comes to design the product, taking an interest in the experience that the product gives besides its shape and function. Product experiences occur when a customer interacts with the product ̶ for example, when customers search for, examine, and evaluate products (Hoch, 2002). The product experience can be direct, i.e. when there is physical contact with the product (Hoch & Ha 1986) or indirect, i.e. when a product is presented virtually or in an advertisement (Hoch & Ha 1986; Kempf and Smith 1998). Brand experience can be split into four dimensions (sensory, affective, intellectual, and behavioral), which are differentially evoked by various brands (Brakus, Schmitt, & Zarantonello, 2009). According to previous studies, these four experience dimensions (sensory, affective, intellectual, and behavioral experience dimensions) have an effect on customer satisfaction and customer loyalty.
Customer value can be defined as the trade-off between the benefits and sacrifices as a customer purchases a product or service from a supplier (Ulaga & Chacour, 2001). Ulaga and Chacour presented three dimensions of customer value: product-related components, service-related components, and promotion-related components. The researchers argued that customer value could be an important strategic marketing tool to clarify a firm's proposition to customers. Product-related components are intrinsic product characteristics. Product quality is a key factor of relationship value (Ulaga, 2003). Customer value consists of product value and service value. Customer value can be enhanced by quality, diversity, payment, and service quality and decreased by price, convenience, and risk (Jarvenpaa & Todd, 2003). Service-related components include all aspects of service associated with the product. Various service components play an important role in differentiating a supplier's offering (Narus & Anderson, 1996). Promotion-related components include all items used to promote the product to the customer. For all purchasing processes, it is necessary to assess the perceived customer value, such as service quality and promotional quality (Qualls & Rosa, 1995).
In the present study, we conducted a research survey with 300 subjects and analyzed the data. In order to test the reliability of questionnaire, Cronbach's alpha was used. In order to test the validity, an exploratory factor analysis was conducted. Measurement was made for 3 variables, i.e. design innovation, design experience, and customer value. Three variables (aesthetical attributes, feature attributes, and emotional attributes) were used for design innovation. Three types of attributes were introduced for a mobile phone design innovation. Four dimensions (sensory, affective, intellectual, behavioral) were measured using a technical design experience and a humanistic design experience. Three variables (product-related customer value, service-related customer value, and promotion-related customer value) were employed for customer value.
The results of the analyses demonstrate that design innovation has a positive effect on design experience, while design experience has a positive effect on customer value. Aesthetic attributes of design innovation have a positive effect on technical design experience and humanistic design experience. Feature attributes have a positive effect on the technical design experience and the humanistic design experience. Emotional attributes have an effect on the technical design experience and the humanistic design experience. The technical design experience has a positive effect on product-related customer value, service-related customer value, and promotion-related customer value. The humanistic design experience has a positive effect on product-related customer value, service-related customer value and promotion-related customer value.
This study will make it possible to empirically examine how customer's experience in design innovation affects customer value. Our results will provide a theoretical foundation for examining a relationship between variables regarding how design innovation influences customer value through design experience.
It is intended to give a direction as to the design innovation of firms by clarifying and presenting antecedent factors having an effect that design innovation produces on customer value. The results of the present study will inspire designers to design in consideration of design experience. Finally, our study will provide marketers with guidelines as to how design experience can influence customer satisfaction and loyalty.
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