Namangan muhandislik pedagogika instituti

Benefits of Aesthetic Design as an Element of New Service Development  
 Candi Marina 
 JOURNAL OF PRODUCT INNOVATION MANAGEMENT 
DEC 2010  
 (Web of Science) 
 
The goal of this research is to investigate the benefits that may be gained from using aesthetic 
design in new service development. The research is performed in two phases. In the first phase, case 
research examining the use of aesthetic design in 16 new service development projects in new 
technology-based firms is used to determine the objectives underlying managers' decisions to use 
aesthetic design in new service development. The results of the case research suggest that the 
objectives underlying managers' decisions to use aesthetic design in new service development are 
attracting new customers, creating and fostering a positive image of their firm in their market, 
retaining existing customers, and doing so at lower cost. In the second phase, the results of the case 
research are used to generate hypotheses that are tested using longitudinal survey data collected in 
98 new technology-based firms. The findings suggest that by and large the benefits expected by 
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managers are realized. The practitioner implications of this research are that new technology-based 
firms that emphasize the use of aesthetic design in new service development can expect to have a 
greater proportion of sales from new customers, be less dependent on a few large customers, be 
more successful in entering new markets, have a more favorable firm image, and enjoy higher 
turnover growth from existing customers and higher profits than comparable firms not using 
aesthetic design. The data do not provide support for the hypothesis that firms using aesthetic 
design in new service development will have customers that are less inclined to switch their 
allegiance to competitors, whereas it does support the hypothesis that firms using aesthetic design 
will enjoy higher turnover growth from existing customers than others. This could indicate that, 
although firms cannot expect to retain customer loyalty based on aesthetic design, they can expect 
to earn greater revenues from customers who do remain loyal if they emphasize aesthetic design.