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					Chapter 5
 Table 5.1: Approaches to Attribute Association

        Approach                   Explanation                               Service and Manufacturing Examples

        Modifying the              Also called product morphology               Home insurance normally covers the costs of repairs.
        nature of                  analysis, this approach takes the             The German Allianz Group has gone further and offers
        attributes                 main product attributes and sees how          a home ‘breakdown’ service, with fast call-out of
                                   these can be modified.                        qualified tradesmen guaranteed for any household
                                                                                 problem (see Box Case 4.1).
                                                                                Originally domestic coffee machines had a simple glass
                                                                                 pot to hold the freshly brewed coffee. However,
                                                                                 companies such as Braun have changed this attribute
                                                                                 to a vacuum flask, which keeps the coffee warm until
        Subtraction or             Removing certain attributes may              Some mobile telephone companies have successfully
        simplification of          simplify a product and make it more           marketed a ‘receive calls only’ contract, which is
        attributes                 attractive to certain segments. This is       popular with parents that want to be able to contact
                                   an attempt to prevent what some               their children but do not want them making outgoing
                                   writers have called feature                   calls.
                                   creep  the tendency for                     Not every subtraction attempt will be successful or
                                   development teams to always add               positively perceived by customers. For example, the
                                   more features to products.                    colourless Crystal Pepsi failed when it was introduced
                                                                                 to the market in 1993.

Source: Based on Goldenberg et al., 2003 and Altschuler, 1996, supplemented by examples collected by the authors.
 K. Goffin and R. Mitchell 2010
 Table 5.1: Approaches to Attribute Association (cont.)

      Multiplication               An existing product attribute is        A classic example is the Mach 3 razor from Gillette.
      of Attributes                copied and offered, with a              The three blades all cut but the first two, which are
                                   modification of the function of         set at different angles, drag across the skin to raise
                                   the repeated attribute, multiple        the beard for cutting by the second or third blade.
                                   times in the product. The               A service example is Europcar’s multiple rental
                                   multiplication leads to a specific      agreement. Busy executives can purchase rental
                                   benefit.                                agreements of, for example, five days a month but
                                                                           these can be multiple rentals, such as one-day at
                                                                           five different airports.
      Division of                  This essentially looks at the product   In the automotive sector ‘mechatronics’ (the combination of
      Attributes                   architecture and how physical or        software-driven electronics and mechanical components is
                                   functional components are grouped       making a big impact. Companies such as DaimlerChrysler
                                   together.                               are moving previously mechanically controlled functions into
                                                                           software, to optimize vehicle performance.
                                                                           Dial-a-Flight, an internet retailer of travel and tourism
                                                                           services, has carefully divided its service augmentation
                                                                           between its website and its call centre to give a
                                                                           personalized service (see Box Case in Chapter 3).
      Unification of               Assigning new functions to existing     The US lawnmower manufacturer Toro has designed a
      Attributes                   attributes. This can, for example,      cutting blade that circulates and cuts grass into much
                                   also lead to simplification.            smaller pieces. Therefore, the pieces can be left on the lawn
                                                                           and the need for a grass-box has been removed. Effectively,
                                                                           a mixture of task unification and simplification.

 K. Goffin and R. Mitchell 2010
Table 5.2: The Augmented Service Offerings

                         Service Products

                  Service A –      Facility Management (security and cleaning)
                  Service B –      IT Services (IT Service Provider)
                  Service C –      Data Warehousing
                  Service D –      Financial Auditing
                  Service E –      Competitor’s IT Services
                  Service F –      Employee Training Seminars

 K. Goffin and R. Mitchell 2010
Table 5.3: Generic Coding Scheme for Observational Studies

            Data Categories            Events to Look For                                      Observed?   Timings    Notes

            Triggers for Acquiring
   1)                                  • Why, when and how?
            The Product or Service
            Triggers for Product
   2)                                  • Who, what, where, when, why, how?
                                       • Physical layout / objects
                                       • Actors
   3)       The Environment
                                       • Activities / events
                                       • Time sequence
            Interactions with User's   • Physical interactions
            Environment                • Social interactions
                                       • Wasted time
                                       • Doing things right
                                       • Doing things wrong
   5)       Product Usage
                                       • Misuse
                                       • Confusion
                                       • Dangerous situations (for example physical or data)

                                       • Emotions
                                       • Frustration and wasted time
                                       • Fears and anxiety
            Intangible Aspects and
   6)                                  • Linguistic signals
            Unarticulated Needs
                                       • Extra-linguistic signals
                                       • Non-verbal signals (for example body language)
                                       • Spatial signals
                                       • User modifications of the product
   7)       User Customization
                                       • User modifications of the (normal) process

  K. Goffin and R. Mitchell 2010                                                               From Leonard Barton and other sources
 Table 5.4: Attribute Levels

                        Product Attribute                   Product A              Product B         Product n

                1       Display Size               14 inch                 15.4 inch             17 inch

                2       Hard Disk Capacity         400 Gbyte               320 Gbyte             250 Gbyte

                3       Processing Speed           2 x 2.26 GHz            2 x 2 GHz             2 x 2.4 GHz

                4       Physical Size and Weight   3.5 kg                  2.5 kg                2.1 kg

                5       Connectivity               WLAN, network and       WLAN, network card,   WLAN, 4 x USB,
                                                   internal modem cards,   infra red             multiple interfaces.
                                                   3 x USB                 connections. 2 x
                6       Price                      € 1349                  € 849                 € 1799

 K. Goffin and R. Mitchell 2010
Table 5.5: Different Approaches to Identifying Customer
Problems and Requirements
     Approach             Overview                              Applications / Advantages              Limitations

 1 Survey                  Use of mainly direct questions to    Widely used as the method of          Questionnaires are often thought to be
   Research               determine customers’ views on what    collecting customer inputs.            easy to design. In fact, it is the opposite
                          they think are their requirements.     Can be applied as a postal           and many surveys are poorly designed and
                           Open-ended questions allow          survey, telephone or direct            consequently produce equivocal results.
                          respondents some freedom to give      interviews.                             Response rates often low, which raises
                          creative ideas.                                                              the question of whether the results are
                                                                                                       representative of the market.
                                                                                                        Respondents may find it difficult to
                                                                                                       articulate their answers to open questions.
 2 Focus Groups            Small groups of selected users or    Help to define customer               The somewhat artificial nature of the
                          non-users, paid to discuss product    problems and give background           situation can limit the effectiveness.
                          needs.                                information, rather than identifying    Particular individuals can dominate the
                           Discussions are stimulated by an    solutions.                             discussions. Therefore good moderation is
                          initial question.                      In vitro discussions of products     required.
                           A moderator guides discussions.     (that is users are taken outside        Some companies try to save costs by
                           Market researchers often observe    their normal environment).             using inexperienced moderators; this
                          the discussions through a two-way                                            wastes the potential of focus groups
                          mirror.                                                                      discussion.
 3 Repertory Grid  Users or customers undergo a                 Repertory grid technique is           The technique is not well known.
   Technique      structured interview.                         powerful at enabling users and          Interviewees need to have experience
                   Interviewees are stimulated to              customers to articulate their          with 5-6 different products and services to
                  identify product attributes by being          issues.                                make the technique work.
                  asked to compare triads of different           The technique taps tacit              Interviewer needs specific training in the
                  products and/or services.                     knowledge of hidden needs              technique, although it is easy to apply.

Source: Compiled by the authors.

 K. Goffin and R. Mitchell 2010
Table 5.5: Different Approaches to Identifying Customer
Problems and Requirements (cont.)
   Approach      Overview                                Applications / Advantages              Limitations

4 Empathic        A range of approaches of which the     Increasingly used to focus on         Effective observation is not easy and using
  Design         main ones are observation, contextual   users’ problems.                       specialists may be the best approach (otherwise
                 interviews and putting product           Gives an in-depth understanding      base studies on a suitable coding scheme
                 designers ‘in the shoes of users’.      of customers’ and users’ product       developed from Table 5.3).
                                                         use models.                             Vast amounts of qualitative data may be
                                                          Contextual interviews are in vivo    generated, which requires effective analysis
                                                         and the environment gives valuable     strategies.
5 Lead            Identification of users that have      Workshop brings together very         Difficulties in identifying lead users.
  Users          extreme needs in your current market.   different users and stimulates          Workshop is time-consuming and lead users
                 Further identification of analogous     creative discussions.                  may need to be motivated to give their time.
                 users in related sectors.                Can be combined with                  Workshop is outside the normal working
                  It is usual to run a workshop with    experimentation, to test the           environment (although it can be combined with a
                 extreme and analogous users, to         concepts identified in the workshop.   visit to a lead user environment).
                 develop product concepts.
6 Experi-    Customers are presented with early          Observing in a realistic scenario     May require expensive virtual prototyping
  mentation prototypes of products (or services)         how customers react to tangible        equipment.
            and base their suggestions on these.         product ideas.                          Superficially, services cannot easily be
             Seeing and using a tangible product         Can be an extension of the lead      prototyped. However, leaders such as HSBC Bank
            often enables customers and users to         user approach.                         prototype their services and collect reactions.
            articulate their views better.
7 Conjoint        Identifies the trade-offs customers    Identification of the product         If the wrong attributes are fed into the analysis,
  Analysis       make in deciding between different      attributes that customers perceive     then the prioritisation will not be useful (it will
                 products.                               as their key priorities.               encourage a continuing focus on incremental
                  Customers are presented with           Development of pricing models.       products).
                 descriptions of products or service                                             The somewhat artificial nature of the decisions
                 products and must choose their                                                 can limit the accuracy of the findings.
                 preferences.                                                                    Relatively complex method that usually needs
 K. Goffin and R. Mitchell 2010                                                                expert support.

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