Designed to Succeed: Dimensions of Product Design and Their Impact on Market Share

Abstract

This research examines the relationship between product design and market share, a topic of considerable significance that has not been addressed in the published literature. Drawing from diverse disciplines such as marketing, industrial design, and engineering, the authors conceptualize design as being composed of three distinct product-level dimensions: function, form, and ergonomics. Furthermore, the authors examine the interplay among these design dimensions and their impact on the market share of a product. Empirical results using integrated repeated cross-sectional data obtained from several different sources in the U.S. light vehicle industry reveal an important strategic trade-off concerning design capabilities. Firms can either “design for satisfaction,” by investing in both function and ergonomics, or “design for delight,” by investing in form design capabilities so as to reap share rewards. The authors also show that older-generation vehicles with superior form designs do much better in terms of share than corresponding older vehicles with higher levels of either function or ergonomics. Implications of these results for academic researchers and managers are discussed.