hcpro lecture 4 (17.1.2012) · • education, experience, culture, technology attitudes etc. •...
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http://www.cs.tut.fi/ihtehttp://www.cs.tut.fi/kurssit/IHTE-3100
HCProLecture 4 (17.1.2012):
Diffusion of innovation, user segmentation,user values and product targeting
Jarmo Palviainen
Lecture 4 contents
• Diffusion of innovation• Segmentations• User values directing design• Personas describin user types• Targeting and positioning products
Segmentations as basis for human centereddesign
• There’s no such product that would be targetedto all humankind
• Or is there?
• Product design and marketing should betargeted to user/customer groups that areknown
• User segment should be meaningfull for thepurpose of design/marketing.
• Eg. Old people vs. ”gray panthers”
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 andrunning 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
How technology spreads from early adopters to masses –innovation diffusion
LaggardsInnovators Early Majority34% 34%13.5% 16%2.5%
Late Majority
Leading edge Mainstream
CHASM (“KUILU”)
[Rogers, Moore]
IS-curve of innov. diffusionaika
omaksujat
EarlyAdopters
Varhaisetomaksujat
Varhais-enemmistö
VastahakoisetMyöhäisetomaksujat
Concepts of technology spreading
• One’s capability to adopt innovation (new idea, practice orproduct) 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 takinginnovation in use (also for laggards)
• See also: The Tipping Point: How LittleThings Can Make a Big Difference,Malcolm Gladwell,
How to make a technology product become amass 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 attitudestowards tecnology
• Are they the main target group?
• Getting over the chasm requires e.g decent userexperience/usability
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
A bit more about diffusions: Bass’s model
Time
New
adop
ters
Innovators
Imitators
Summed
NetworksCritical massTakeoff -point
[Bass 1969]
Bass’s model
Time
New
adop
ters
Adopting based on mass media
Adopting based onpersonal interaction
Is Bass’s model valid still?
Segmentation categorization
General Product specificCan be noticed Cultural
GeographicalDemocraphicalSocio-economical
User StatusUsage frequencyBrand loyaltySituational
Can not benoticed
PsychographicalValue-basedPersonalityLife-style
PsychographicalProductpreferencesBenefits
Market Segmentation Conceptual and MethodologicalFoundations, Wedel and Kamakura, 2000
Good segmentation is…
• Meaningfull for the product group and for thecompany
• 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 asegment
Example one 1: Segmentation based ondemography 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]
What would be the demography for the targetgroups of these products?
Example 2: VALSTM (Values and Lifestyles)framework by SRI consulting (USA)
• Currently based on psychological traits• Developed in USA
http://www.strategicbusinessinsights.com/vals/presurvey.shtml
”VALS™ is a marketing and consulting tool thathelps businesses worldwide develop and executemore effective strategies.”
”The system identifies current and futureopportunities by segmenting the consumermarketplace on the basis of the personality traitsthat drive consumer behavior.”
VALS framework
Primary Motivation• Ideals - knowledge andprinciples.• Achievement - demonstratesuccess to their peers.• Self-expression - desire socialor physical activity, variety,and risk.
Resources• Energy, self-confidence,intellectualism, novelty seeking,innovativeness, impulsiveness,leadership, and vanity.
http://www.strategicbusinessinsights.com/vals/presurvey.shtml
VALS-survey - 31 multiple choise questionsThe 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
http://www.strategicbusinessinsights.com/vals/presurvey.shtml
VALS: Thinkers
“Thinkers are motivated by ideals. They aremature, satisfied, comfortable, and reflectivepeople who value order, knowledge, andresponsibility. They tend to be well educatedand actively seek out information in thedecision-making process. They are well-informed about world and national events andare alert to opportunities to broaden theirknowledge.
Thinkers have a moderate respect for the statusquo institutions of authority and social decorum,but are open to consider new ideas. Althoughtheir incomes allow them many choices,Thinkers are conservative, practical consumers;they look for durability, functionality, and valuein the products they buy.“
http://www.strategicbusinessinsights.com/vals/presurvey.shtml
VALS: Makers
“Like Experiencers, Makers are motivated by self-expression. They express themselves andexperience the world by working on it - building ahouse, raising children, fixing a car, or canningvegetables - and have enough skill and energy tocarry out their projects successfully. Makers arepractical people who have constructive skills andvalue self-sufficiency. They live within a traditionalcontext of family, practical work, and physicalrecreation and have little interest in what liesoutside that context.
Makers are suspicious of new ideas and largeinstitutions such as big business. They arerespectful of government authority and organizedlabor, but resentful of government intrusion onindividual rights. They are unimpressed by materialpossessions other than those with a practical orfunctional purpose. Because they prefer value toluxury, they buy basic products.”
http://www.strategicbusinessinsights.com/vals/presurvey.shtml
VALS: Applying it to design…
Let’s say you know the age group andtypical education of your target group.By using VALS you could decide which toemphasize:• Preference for:
• Control vs. freedom• Tradition vs. novelty• Information vs. stimulation• Hands-on activity vs. intellectual abstractions
Conclusions about segmentations in productdesign
• In the beginning of product design you need to define thetarget group thath will be partipicipated in the designprocess
• 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 desiresconcerning the product
• Selecting the target group is critical, both in studies and indesign
Company as a customer: segmentingcompanies
Company demography• Field• Size• Location
Operating variables• Technology used• User vs. no user –status• Size of the cust. need
Approaches to bying• Centralized vs. de-centralized
bying functions• Engineering / economy driven...• Bying criteria (e.g. quality, price)...
Situational factors• Busy or not• How largely is applied in the
company• Order size
Personal characteristics• ”buyer-seller similarity”• Attitude towards risk taking• Loyality
[Kotler; Bonoma&Shapiro, Segmenting the Industrial market, 1983]
End users as target groups in businesssystems
• Professsion• Education• Training for use• Computer skills• Age• ...
• Also the users in the companies are humans – psychography andother factors do not disappear in work context either!
• Attitude towards technology has big influence on productivity of work
Segmentations - conlusions
• Segmentations are shifting towardspsychography
• 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.
What values do the target groups have?
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.
Personas describing a segment
Archetype/mode of a segmentHelp understand users goals, habits, motives and values
direct design decisionsPersonas help stakeholders to get a common view of the user
groups
Paulo JoséPaulo José has completed high school, is 37 year-old andis employed. He is not the leader of a team, but one of itsmembers.“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 pieceright now, but I can see its value.”
[Aquino & Leite Figueiras, 2004]
[http://www.7nights.com/asterisk/sara_locke.gif](accessed on 1.2.2008)
Personas help in different stages of productdevelopment
• Communicating product ideas to stakeholders, e.g. uppermanagement
• 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 inthe development
Article for lecture 4:
Differentiation in the cloud: methodology for integratingcustomer values in experience design, Andrey Sirotkin
et al, SEAA 2012http://www.cloudsoftwareprogram.org/theses-and-articles/i/28680/1570/differentiation-in-the-cloud-methodology-for-integrating-customer-values-in-
experience-design
30
27.1.2014
References
• Cockton, G. (2005). A development framework for Value-Centred Design. InProceedings of the CHI 2005 Extended Abstracts, ACM Press, pp. 1292-1295.
• Cockton, G. (2006). Designing worth is worth designing. In Proceedings ofNordiCHI 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 Human-computer interaction CLIHC '05 Publisher: ACM Press
• Pruitt J. and Adlin T. (2006) The Persona Lifecycle: Keeping People in MindThroughout Product Design, Morgan Kaufman, San Francisco, CA.
• Rogers, E. M. (2003) Diffusion of Innovations, 5th edition, New York, USA, FreePress
• Ries, A. and Trout, J. (2001). Positioning, How to be seen and heard in theovercrowded marketplace, McGraw Hill.