HCPro Lecture 4 ( ):

Transcription

1 HCPro Lecture 4 ( ): Diffusion of innovation, user segmentation, user values and product targeting Jarmo Palviainen

2 Lecture 4 contents Diffusion of innovation Segmentations User values directing design Personas describin user types Targeting and positioning products

3 Segmentations as basis for human centered design There s no such product that would be targeted to all humankind Or is there? Product design and marketing should be targeted to user/customer groups that are known User segment should be meaningfull for the purpose of design/marketing. Eg. Old people vs. gray panthers

4 Why segmentation is needed Users and consumers are different Different basis for grouping them Backgrounds, motivations, needs, wealth, lifestyle Education, experience, culture, technology attitudes etc. Different people have different needs latent & explicit Targeting => right product for right segment Defining segments/target groups crucial for planning and running successful business Basis for product dev. & marketing Defining business case Strategic tool for following environment Planning product portfolio Meaningfull segmentation is basis for all product development

5 How technology spreads from early adopters to masses innovation diffusion CHASM ( KUILU ) omaksujat IS-curve of innov. diffusion aika Leading edge Mainstream 2.5% Innovators 13.5% 34% 34% 16% Early Adopters Early Majority Late Majority Laggards Varhaiset omaksujat Varhaisenemmistö Myöhäiset omaksujat Vastahakoiset [Rogers, Moore]

6 Concepts of technology spreading One s capability to adopt innovation (new idea, practice or product) depends on [Rogers] Relative advantage Combatibility (experiences, values and needs) Need for change Triability Observability Social Pressure Treshold (kynnys) Critical mass Trouble of not using is bigger than taking innovation in use (also for laggards) See also: The Tipping Point: How Little Things Can Make a Big Difference, Malcolm Gladwell,

7 How to make a technology product become a mass product Some segments are faster adopters than the others To Whom should you concentrate in product design and marketing Innovators and early adopters have positive attitudes towards tecnology Are they the main target group? Getting over the chasm requires e.g decent user experience/usability

8 Properties for low threshold of adopting innovations [Rogers] Socio economical age (no clear affect) Education, reading skills Highs social status Social status going up Personality traits Empathy Less dogmatic (perhaps) Ability to think abstractly Rationality Intelligence Tolerance for uncertainty Less fatalism More ambition Communication Cocially participating more More connections More cosmopolit Opinion leaders (depending on the norms) - G. Simmel: Strangers in their own community - Homophily - heterophily

9 A bit more about diffusions: Bass s model New adopters Summed Imitators Networks Critical mass Takeoff -point Innovators Time [Bass 1969]

10 Bass s model Is Bass s model valid still? New adopters Adopting based on personal interaction Adopting based on mass media Time

11 Segmentation categorization Can be noticed Can not be noticed General Cultural Geographical Democraphical Socio-economical Psychographical Value-based Personality Life-style Product specific User Status Usage frequency Brand loyalty Situational Psychographical Product preferences Benefits Market Segmentation Conceptual and Methodological Foundations, Wedel and Kamakura, 2000

12 Good segmentation is Meaningfull for the product group and for the company Possible to use in wide area Different functions in the company Partners, sub contractors Market specific vs. global Descriptive names Gray panther, Mildred = taistelunhaluinen äiti (USA/Statt), Fun Seekers (global/roper Reports Worldwide Survey 97) Objective/verifiable, measurable, fine granalarity, recognizability A Profile describes the typical features of a segment

13 Example one 1: Segmentation based on demography and behaviour Demography Family size: 1-2, 3-4, 5+ Life phase: Young, married, no kids, youngest kid <6, no kids, retired,... Profession: Technical, management, student, Other criteria: Income, education, living area, social class,... Behaviour User status: Non-user, ex, potential, first time, regular user Expectations from the benefits: quality, speed, cheap price Usage patterns: random use, special occasions, regular use, [Kotler, p. 264]

14 What would be the demography for the target groups of these products?

15 Example 2: VALS TM (Values and Lifestyles) framework by SRI consulting (USA) Currently based on psychological traits Developed in USA VALS is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior.

16 VALS framework Primary Motivation Ideals - knowledge and principles. Achievement - demonstrate success to their peers. Self-expression - desire social or physical activity, variety, and risk. Resources Energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership, and vanity.

17 VALS-survey - 31 multiple choise questions The first 8: 1. I am often interested in theories. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 2. I like outrageous people and things. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 3. I like a lot of variety in my life. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 4. I love to make things I can use everyday. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 5. I follow the latest trends and fashions. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 6. Just as the Bible says, the world literally was created in six days. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 7. I like being in charge of a group. Mostly disagree Somewhat disagree Somewhat agree Mostly agree 8. I like to learn about art, culture, and history. Mostly disagree Somewhat disagree Somewhat agree Mostly agree

18 VALS: Thinkers Thinkers are motivated by ideals. They are mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility. They tend to be well educated and actively seek out information in the decision-making process. They are wellinformed about world and national events and are alert to opportunities to broaden their knowledge. Thinkers have a moderate respect for the status quo institutions of authority and social decorum, but are open to consider new ideas. Although their incomes allow them many choices, Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products they buy.

19 VALS: Makers Like Experiencers, Makers are motivated by selfexpression. They express themselves and experience the world by working on it - building a house, raising children, fixing a car, or canning vegetables - and have enough skill and energy to carry out their projects successfully. Makers are practical people who have constructive skills and value self-sufficiency. They live within a traditional context of family, practical work, and physical recreation and have little interest in what lies outside that context. Makers are suspicious of new ideas and large institutions such as big business. They are respectful of government authority and organized labor, but resentful of government intrusion on individual rights. They are unimpressed by material possessions other than those with a practical or functional purpose. Because they prefer value to luxury, they buy basic products.

20 VALS: Applying it to design Let s say you know the age group and typical education of your target group. By using VALS you could decide which to emphasize: Preference for: Control vs. freedom Tradition vs. novelty Information vs. stimulation Hands-on activity vs. intellectual abstractions

21 Conclusions about segmentations in product design In the beginning of product design you need to define the target group thath will be partipicipated in the design process Or a sample of this group Demography does not tell much about product needs Value and life style based segmentations give deeper understanding about target group needs and desires concerning the product Selecting the target group is critical, both in studies and in design

22 Company as a customer: segmenting companies Company demography Field Size Location Operating variables Technology used User vs. no user status Size of the cust. need Situational factors Busy or not How largely is applied in the company Order size Personal characteristics buyer-seller similarity Attitude towards risk taking Loyality Approaches to bying Centralized vs. de-centralized bying functions Engineering / economy driven... Bying criteria (e.g. quality, price)... [Kotler; Bonoma&Shapiro, Segmenting the Industrial market, 1983]

23 End users as target groups in business systems Professsion Education Training for use Computer skills Age... Also the users in the companies are humans psychography and other factors do not disappear in work context either! Attitude towards technology has big influence on productivity of work

24 Segmentations - conlusions Segmentations are shifting towards psychography Segmentations change over time Changin life-styles, values and attitudes Qualitative and quantitave data is needed Segement sizes, income/bying potential, frequency of bying etc. Motivations, values, attitudes, life-style etc.

25 What values do the target groups have?

26 Personas for describing target groups (fi: persoona) Persona concept is developed by Alan Cooper (Goal-Directed Design) : Cooper, A. (2003). About Face 2.0: The Essentials of Interaction Design, Wiley.

27 Personas describing a segment Archetype/mode of a segment Help understand users goals, habits, motives and values direct design decisions Personas help stakeholders to get a common view of the user groups Paulo José Paulo José has completed high school, is 37 year-old and is employed. He is not the leader of a team, but one of its members. I don't have patience to read pages to get to the point. I thought a little study would take me to the target. I don't have patience to try and learn the whole piece right now, but I can see its value. [Aquino & Leite Figueiras, 2004]

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29 Personas help in different stages of product development Communicating product ideas to stakeholders, e.g. upper management Choosing functionality Creating content Prioritizing, e.g. based on user values Evaluating product concepts nad prototypes Does this product fulfill the needs of the personas NOTE! Personas do not replace having real users involved in the development

30 30 Article for lecture 4: Differentiation in the cloud: methodology for integrating customer values in experience design, Andrey Sirotkin et al, SEAA

31 References Cockton, G. (2005). A development framework for Value-Centred Design. In Proceedings of the CHI 2005 Extended Abstracts, ACM Press, pp Cockton, G. (2006). Designing worth is worth designing. In Proceedings of NordiCHI Conference, ACM Press. Cooper, A. (2003). About Face 2.0: The Essentials of Interaction Design, Wiley. Kujala, S. and Kauppinen, M. (2004). Identifying and Selecting Users for User- Centered Design, Proceedings of NordiCHI 04. Kotler, Marketing Management, 1999 (Millenium edition), Prentice Hall. Moore, G. A. (1991) Crossing the Chasm. HarperBusiness, USA. Plinio Thomaz Aquino Junior, Lucia Vilela Leite Filgueiras (2005). User modeling with personas, Proceedings of the 2005 Latin American conference on Humancomputer interaction CLIHC '05 Publisher: ACM Press Pruitt J. and Adlin T. (2006) The Persona Lifecycle: Keeping People in Mind Throughout Product Design, Morgan Kaufman, San Francisco, CA. Rogers, E. M. (2003) Diffusion of Innovations, 5th edition, New York, USA, Free Press Ries, A. and Trout, J. (2001). Positioning, How to be seen and heard in the overcrowded marketplace, McGraw Hill.