Abstract

Design is an economic activity to create values for users and stakeholders over the value chain of a product. In this paper, the contribution of design is defined as the enhancement of users' perceived values by improving users’ “experience of a product”. In this context, the value of a product corresponds to compensation for experience or a promise for experience of a product. Experience can be sensory or psychological benefits to users. To evaluate the value of design, it is important to identify and analyze the design parameters affecting users' experience and benefits of products such as macro-, microenvironmental factors, value chain factors, designer factors, and user factors. For an analytical modeling of the values of design, this paper introduces the concept of a “utility function” from economics. In economics, utility is a measure of “desirability or satisfaction” that can be correlative to “Need or Desire". The measure of value can be found in the price which a user is willing to pay for the fulfillment or satisfaction of need or desire via the experience of a product.

Keywords

value of design, design value space, design economics, design utility function

COinS
 
Jul 1st, 12:00 AM

Evaluating the Values of Design from the Economics Perspective

Design is an economic activity to create values for users and stakeholders over the value chain of a product. In this paper, the contribution of design is defined as the enhancement of users' perceived values by improving users’ “experience of a product”. In this context, the value of a product corresponds to compensation for experience or a promise for experience of a product. Experience can be sensory or psychological benefits to users. To evaluate the value of design, it is important to identify and analyze the design parameters affecting users' experience and benefits of products such as macro-, microenvironmental factors, value chain factors, designer factors, and user factors. For an analytical modeling of the values of design, this paper introduces the concept of a “utility function” from economics. In economics, utility is a measure of “desirability or satisfaction” that can be correlative to “Need or Desire". The measure of value can be found in the price which a user is willing to pay for the fulfillment or satisfaction of need or desire via the experience of a product.

 

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