Emotional Design: An Overview

Emotional design has been well recognized in the domain of human factors and ergonomics. In this chapter, we reviewed related models and methods of emotional design. We are motivated to encourage emotional designers to take multiple perspectives when examining these models and methods. Then we proposed a systematic process for emotional design, including affective-cognitive needs elicitation, affective-cognitive needs analysis, and affective-cognitive needs fulfillment to support emotional design. Within each step, we provided an updated review of the representative methods to support and offer further guidance on emotional design. We hope researchers and industrial practitioners can take a systematic approach to consider each step in the framework with care. Finally, the speculations on the challenges and future directions can potentially help researchers across different fields to further advance emotional design.http://deepblue.lib.umich.edu/bitstream/2027.42/163319/1/Emotional_Design_Manuscript_Final.pdfSEL

Analyzing Customer Needs of Product Ecosystems Using Online Product Reviews

It is necessary to analyze customer needs of a product ecosystem in order to increase customer satisfaction and user experience, which will, in turn, enhance its business strategy and profits. However, it is often time-consuming and challenging to identify and analyze customer needs of product ecosystems using traditional methods due to numerous products and services as well as their interdependence within the product ecosystem. In this paper, we analyzed customer needs of a product ecosystem by capitalizing on online product reviews of multiple products and services of the Amazon product ecosystem with machine learning techniques. First, we filtered the noise involved in the reviews using a fastText method to categorize the reviews into informative and uninformative regarding customer needs. Second, we extracted various customer needs related topics using a latent Dirichlet allocation technique. Third, we conducted sentiment analysis using a valence aware dictionary and sentiment reasoner method, which not only predicted the sentiment of the reviews, but also its intensity. Based on the first three steps, we classified customer needs using an analytical Kano model dynamically. The case study of Amazon product ecosystem showed the potential of the proposed method.https://deepblue.lib.umich.edu/bitstream/2027.42/153962/1/ANALYZING CUSTOMER NEEDS OF PRODUCT ECOSYSTEMS USING ONLINE PRODUCT REVIEWS.pdfDescription of ANALYZING CUSTOMER NEEDS OF PRODUCT ECOSYSTEMS USING ONLINE PRODUCT REVIEWS.pdf : Main articl

Modeling the Psychology of Consumer and Firm Behavior with Behavioral Economics

Marketing is an applied science that tries to explain and influence how firms and consumers actually behave in markets. Marketing models are usually applications of economic theories. These theories are general and produce precise predictions, but they rely on strong assumptions of rationality of consumers and firms. Theories based on rationality limits could prove similarly general and precise, while grounding theories in psychological plausibility and explaining facts which are puzzles for the standard approach. Behavioral economics explores the implications of limits of rationality. The goal is to make economic theories more plausible while maintaining formal power and accurate prediction of field data. This review focuses selectively on six types of models used in behavioral economics that can be applied to marketing. Three of the models generalize consumer preference to allow (1) sensitivity to reference points (and loss-aversion); (2) social preferences toward outcomes of others; and (3) preference for instant gratification (quasi-hyperbolic discounting). The three models are applied to industrial channel bargaining, salesforce compensation, and pricing of virtuous goods such as gym memberships. The other three models generalize the concept of gametheoretic equilibrium, allowing decision makers to make mistakes (quantal response equilibrium), encounter limits on the depth of strategic thinking (cognitive hierarchy), and equilibrate by learning from feedback (self-tuning EWA). These are applied to marketing strategy problems involving differentiated products, competitive entry into large and small markets, and low-price guarantees. The main goal of this selected review is to encourage marketing researchers of all kinds to apply these tools to marketing. Understanding the models and applying them is a technical challenge for marketing modelers, which also requires thoughtful input from psychologists studying details of consumer behavior. As a result, models like these could create a common language for modelers who prize formality and psychologists who prize realism

A Machine Learning Approach to Customer Needs Analysis for Product Ecosystems

Creating product ecosystems has been one of the strategic ways to enhance user experience and business advantages. Among many, customer needs analysis for product ecosystems is one of the most challenging tasks in creating a successful product ecosystem from both the perspectives of marketing research and product development. In this paper, we propose a machine-learning approach to customer needs analysis for product ecosystems by examining a large amount of online user-generated product reviews within a product ecosystem. First, we filtered out uninformative reviews from the informative reviews using a fastText technique. Then, we extract a variety of topics with regard to customer needs using a topic modeling technique named latent Dirichlet allocation. In addition, we applied a rule-based sentiment analysis method to predict not only the sentiment of the reviews but also their sentiment intensity values. Finally, we categorized customer needs related to different topics extracted using an analytic Kano model based on the dissatisfaction-satisfaction pair from the sentiment analysis. A case example of the Amazon product ecosystem was used to illustrate the potential and feasibility of the proposed method.https://deepblue.lib.umich.edu/bitstream/2027.42/153965/1/A Machine Learning Approach to Customer Needs Analysis for Product Ecosystems.pd

Review on recent advances in information mining from big consumer opinion data for product design

In this paper, based on more than ten years' studies on this dedicated research thrust, a comprehensive review concerning information mining from big consumer opinion data in order to assist product design is presented. First, the research background and the essential terminologies regarding online consumer opinion data are introduced. Next, studies concerning information extraction and information utilization of big consumer opinion data for product design are reviewed. Studies on information extraction of big consumer opinion data are explained from various perspectives, including data acquisition, opinion target recognition, feature identification and sentiment analysis, opinion summarization and sampling, etc. Reviews on information utilization of big consumer opinion data for product design are explored in terms of how to extract critical customer needs from big consumer opinion data, how to connect the voice of the customers with product design, how to make effective comparisons and reasonable ranking on similar products, how to identify ever-evolving customer concerns efficiently, and so on. Furthermore, significant and practical aspects of research trends are highlighted for future studies. This survey will facilitate researchers and practitioners to understand the latest development of relevant studies and applications centered on how big consumer opinion data can be processed, analyzed, and exploited in aiding product design

Salesforce Automation: An Examination of Issues

The diffusion of sales force automation (SFA) systems has enabled a far more systematic approach to sales force management. This opens new avenues for the academic study of the industrial selling process as well: new arenas for investigation, new windows into salesperson behavior, and new methodological pitfalls. The purpose of this dissertation is to develop a better understanding of SFA from an academic perspective, and then apply these insights to resolve gaps in our understanding of how sales forces behave and how they might be better managed. To do this, three areas of analysis are explored: methodological, behavioral, and theoretical

UX in AI: Trust in Algorithm-based Investment Decisions

This Thesis looks at investors’ loss tolerance with portfolios managed by a human advisor compared to an algorithm with different degrees of humanization. The main goal is to explore differences between these groups (Humanized Algorithm, Dehumanized Algorithm, Humanized Human and Dehumanized Humans) and a potential diverging effect of humanizing. The Thesis is based on prior research (Hodge et al., 2018) but incorporates new aspects such as additional variables (demographics, prior experiences) and a comparison between users and non-users of automated-investment products. The core of this research is an experiment simulating an investment portfolio over time with four different portfolio managers. Subjects were asked to decide if they want to hold or sell a declining portfolio at five points in time to measure their loss tolerance. A cox regression model shows that portfolios managed by the Humanized Human had the highest loss tolerance. Humanizing leads to higher loss tolerance for the human advisor but to lower loss tolerance for algorithmic advisors within the non-user group. Keywords: Künstliche Intelligenz; Artificial Intelligence; Behavioral Finance; Behavioral Economics; Human-Computer-Interaction; User Experience; Investmententscheidungen; Nutzervertrauen

The Impact of Uncertainty on Customer Satisfaction

Customer satisfaction is an important metric to predict customer behavior and as a result firms' profitability. Expectations of a product's performance serve as a reference point against which customers evaluate their satisfaction with the products' actual performance. However, what is the effect of uncertainty in expectations? This paper develops a novel theoretical model of satisfaction, in which expectations reflect distributions of individual beliefs about performance outcomes. Based on this model, uncertainty shifts subjective reference points upward. That is, uncertainty increases the performance level at which customers switch from being dissatisfied to being satisfied. Furthermore, uncertainty has an attenuating effect on both positive and negative deviations of actual performance from subjective reference points. Put differently, a bad performance feels less bad and a good performance feels less good when it is expected, compared with unexpected. The authors find support for the model's predictions in an experimental study on product delivery as well as a field study based on online reviews. In addition, the authors develop a model-based tool that predicts the effect of uncertainty on customer satisfaction across different customizable scenarios. The paper's results carry implications for firms' communication, customer valuation and recovery strategies