Product Design

Business Horizons (2008) 51, 441—450

www.elsevier.com/locate/bushor

Using product design strategically to create deeper consumer connections

Charles H. Noble a,*, Minu Kumar b

School of Business Administration, The University of Mississippi, P.O. Box 1848, University, MS 38677-1848, U.S.A. b College of Business, San Francisco State University, 1600 Holloway Avenue, San Francisco, CA 94132-4156, U.S.A.

a

KEYWORDS

Product design; Functional differentiation; Emotional value creation; Grounded theory

Abstract Historically, product design has most often been considered a process for creating functional differentiation through added features, superior performance, and so forth. However, with the advent of more design-oriented companies, such as Apple, Dyson, and others, design is increasingly being seen as an important strategic tool in creating preference and deeper emotional value for the consumer. In this research, we show how different design elements may be used strategically to create two very different outcome chains from a consumer’s perspective. This work shows that certain design elements are more likely to create functional product differentiation and transactional consumer outcomes, while other design strategies tap a more emotional form of value creation. As we show, an emotional focus in value creation is more likely to create desired and powerful outcomes such as loyalty, joy of use, and even passion. Given current business trends towards relationship-based customer management, this emphasis on emotional value creation through product design is particularly relevant. In order to make these ideas actionable, we offer specific product design strategies that managers can use to enhance the transactional and relational value of their customer relationships. # 2008 Kelley School of Business, Indiana University. All rights reserved.

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