Kelley's award-winning faculty inspire and motivate future business leaders

Description of the video:

WEBVTT 00:01.170 --> 00:03.753 (upbeat music) 00:08.110 --> 00:11.100 - Imagine that you're going to buy a car for yourself. 00:11.100 --> 00:13.300 The exterior style and design of cars 00:13.300 --> 00:16.210 is a very important factor that affects your decision. 00:21.480 --> 00:24.210 Design is not only important for cars, 00:24.210 --> 00:25.940 it is also important for products 00:25.940 --> 00:27.700 in a wide range of industries, 00:27.700 --> 00:31.530 such as handbags, watches, consumer electronics. 00:31.530 --> 00:34.070 Despite the importance of a product design, 00:34.070 --> 00:36.820 there has been very limited research about product design 00:36.820 --> 00:38.320 in the marketing literature. 00:38.320 --> 00:40.400 The main challenge for studying design 00:40.400 --> 00:43.010 is that the exterior design of a product 00:43.010 --> 00:45.590 is very difficult to measure and quantify. 00:45.590 --> 00:47.940 Without objective measures of a design, 00:47.940 --> 00:50.830 it is difficult to analyze the impact of a design 00:50.830 --> 00:53.520 on consumer choices and marketing outcomes. 00:56.550 --> 00:57.890 Along with my co-authors, 00:57.890 --> 01:00.710 Yan Liu, Allan Chen, and Bala Balachander, 01:00.710 --> 01:02.970 we use image processing software 01:02.970 --> 01:05.270 to analyze thousands of picture for cars 01:05.270 --> 01:08.720 for all cars sold in the US market over eight year period. 01:08.720 --> 01:11.660 We measure how much each car looks different 01:11.660 --> 01:14.240 from the average look of a segment, 01:14.240 --> 01:16.130 and how much each car looks consistent 01:16.130 --> 01:18.320 with the average look in its brand. 01:22.920 --> 01:25.800 Consumers like cars that look moderately different 01:25.800 --> 01:27.800 from their category and from their brand. 01:27.800 --> 01:30.280 Consumers are more price sensitive when they think 01:30.280 --> 01:32.620 about buying cars that look very typical. 01:32.620 --> 01:35.620 Economy cars benefit from imitating the design 01:35.620 --> 01:37.140 of luxury cars. 01:37.140 --> 01:39.960 Advertisement is more effective if it features 01:39.960 --> 01:42.770 cars that look more consistent with its brand. 01:42.770 --> 01:45.090 All this findings will be very useful 01:45.090 --> 01:48.050 for brands to make optimal design, pricing, 01:48.050 --> 01:49.690 and advertising decisions. 01:49.690 --> 01:51.930 If you'd like to hear more about this research, 01:51.930 --> 01:54.790 I invite you to read our paper in the forthcoming issue 01:54.790 --> 01:56.240 of the Journal for Marketing.