Product Design Enhance Market Performance?

A Literature Review on Product Design, Firm Performance and Consumer Response

Abstract

This paper reviews prior empirical studies on the effect of product design on firm performance, by classifying them into three areas: (i) firm level, (ii) product level and (iii) design organization level. These studies support product design positively affects firm performance through the complex mechanism with mediation and/or interaction effects. These empirical results suggest further studies regarding (1) strategic context and product design process, (2) consumer cognition as mediation variables between design process and firm performance and (3) organizational mechanisms and key factors in design management.