Tag Archives: Goal systems theory

Postcards without stamps: How retailers miss simple customer needs

When I recently visited a CVS store in Long Beach, I stood in front of an impressive display of postcards. There were options for every occasion—anniversaries, Halloween, and even postcards designed to send money via Venmo. After choosing a card, I instinctively searched for postal stamps. To my surprise, the store did not sell them. This simple task of sending a postcard turned into a complex process. I had to go to Ralphs store, buy a book of 20 forever stamps for $14.60, and inquire how many were required for international shipping. This endeavor took over two hours. Even finding a post box was a challenge.

This experience echoes findings from Hwang et al. (2022) on goal-based bundling, where understanding consumer goals helps companies like Samsung develop product bundles that address customer needs holistically. If CVS applied a similar approach and emphasized with their shoppers deeply, bundling postcards with stamps could enhance consumer experience. Since the goal of buying a postcard is inherently linked to mailing it, offering both products together would eliminate unnecessary friction, saving time and improving convenience.

Building on this idea, not only retailers like CVS but also postcard makers like Hallmark could improve the postcard experience by launching postcards with pre-attached postal stamps. This would make it easier for customers, especially those who want send mail simply. By making mailing as easy as buying, manufacturers would help meet customer needs directly. This approach could also attract more people to send postcards, creating a new market focused on convenience and simplicity.

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Reference

Hwang, S., Park, H., Sohn, M., Yoo, D., Han, C., & Joo, J. (2022). Goal based bundling: A behaviorally informed strategy to combine multiple smart products. In G. Bruyns & H. Wei (Eds.), [ _ ] With Design: Reinventing Design Modes (pp. 2888–2901). Singapore: Springer.

Contemporary electronic manufacturers struggle with how to develop attractive bundles by combining their existing smart products. In the present work, we propose Goal Based Bundling (GBB) by drawing on the academic research of goal systems theory (Kruglanski et al., 2018) and shed light on two previously ignored aspects of bundling strategy: service and glue product. We applied our GBB to a collaborative project with Samsung Electronics, whose goal was to develop new product bundles for kids by combining multiple smart home products. We constructed a framework of Samsung Electronics’ smart products and then visualized it on its sales website. A UI design conveying the value of smart products bundle was developed based on GBB structure. We discuss the process and the result of our project to provide insights into the product managers who combine existing smart products to develop a bundle.

Interpret Voice of the Customer (VoC) from a customer’s perspective

I was recently invited by Professor Aguinaldo Santos to give a lecture to his design students at Universidade Federal do Paraná (UFPR). In this lecture, I introduced my collaborative project experience with a team of Digital Appliance (DA) Business Divisionan at Samsung Electronics. They develope washers, dryers, and refrigerators, to name a few.

The team members were familiar with the VoC (Voice of the Customer), which is defined as “a hierarchical set of “customer needs” where each need (or set of needs) has assigned to it a priority which indicates its importance to the customer (Griffin and Hauser 1993, p. 2).” They collected tons of feedback and expectations about their products.

Although their effort in comprehensively collecting VoC was impressive, the way they interpret VoC was not rigorous sufficiently. They could not help but rely on intuition or expertise, interpreting VoC in a biased way.

To debias VoC interpretation, we employed the Goal Systems Theory. Since this theory illustrates why people behave in such a way (e.g., I choose rucola because I want to lose 10 pounds), it enabled them to understand VoC from the writer’s viewpoint.

Then, we developed a guideline about how to interpret VoC from a customer’s perspecitve, and examined its effectiveness by testing 3,500 VoC. One lesson we have learned is that frequently reported VoC was not always the right source of innovation. Instead, the VoC connected with an important goal, though not frequently reported, pointed to the right direction.

Reference 1

Griffin, A., & Hauser, J. R. (1993). The Voice of the Customer. Marketing Science, 12(1), 1–27.

In recent years, many U.S. and Japanese firms have adopted Quality Function Deployment (QFD). QFD is a total-quality-management process in which the “voice of the customer” is deployed throughout the R&D, engineering, and manufacturing stages of product development. For example, in the first “house” of QFD, customer needs are linked to design attributes thus encouraging the joint consideration of marketing issues and engineering issues. This paper focuses on the “Voice-of-the-Customer’ component of QFD, that is, the tasks of identifying customer needs, structuring customer needs, and providing priorities for customer needs. In the identification stage, we address the questions of ( 1 ) how many customers need be interviewed, (2) how many analysts need to read the transcripts, (3) how many customer needs do we miss, and (4) are focus groups or one-on-one interviews superior? In the structuring stage the customer needs are arrayed into a hierarchy of primary, secondary, and tertiary needs. We compare group consensus (affinity) charts, a technique which accounts for most industry applications, with a technique based on customer-sort data. In the stage which provides priorities we present new data in which product concepts were created by product-development experts such that each concept stressed the fulfillment of one primary customer need. Customer interest in and preference for these concepts are compared to measured and estimated importances. We also address the question of whether frequency of mention can be used as a surrogate for importance. Finally, we examine the stated goal of QFD, customer satisfaction. Our data demonstrate a self-selection bias in satisfaction measures that are used commonly for QFD and for corporate incentive programs. We close with a brief application to illustrate

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Reference 2

Kruglanski, A. W., Shah, J. Y., Fishbach, A., Friedman, R., Chun, W. Y., & Sleeth-Keppler, D. (2018). A theory of goal systems. In M. P. Zanna (Ed.), Advances in Experimental Social Psychology (Department, Vol. 34, pp. 331–378). Waterloo, Ontario, Canada: Academic Press.

The theory outlined in the present chapter adopts a cognitive approach to motivation. In the pages that follow we describe a research program premised on the notion that the cognitive treatment affords conceptual and methodological advantages enabling new insights into problems of motivated action, self-regulation, and self-control. We begin by placing our work in the broader historical context of social psychological theorizing about motivation and cognition. We then present our theoretical notions and trace their implications for a variety of psychological issues, including activity experience, goal commitment, choice, and substitution. The gist of the chapter that follows describes our empirical research concerning a broad range of phenomena informed by the goal-systemic analysis.

Bundle multiple products in a human-centered way

I recently gave a lecture at Ecobee, a smart home product company in Canada. In this lecture, I compared two different approaches when bundling multiple smart home products.

One is product-centered bundling; they can select a hero product or a product that contributes to their sales significantly and then attach additional products randomly. The other is human-centered (service-centered) bundling; they can select multiple products to form a service which helps consumers achieve their goals.

The product-centered bundling was previously employed among Samsung designers; they selected Galaxy mobile phone or Samsung TV and then added smart door lock or smart plug to create Multi Device Experience. However, we proposed them to adopt the human-centered (service-centered) approach.

The more I become interested in cognitive interventions, the more I delve into motivational goals. This is because we are able to change their behaviors if we know why consumers do what they do. I wish Ecobee designers apply goal to solve their business problems.

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Reference 1

Kruglanski, A. W., Shah, J. Y., Fishbach, A., Friedman, R., Chun, W. Y., & Sleeth-Keppler, D. (2018). A theory of goal systems. In M. P. Zanna (Ed.), Advances in Experimental Social Psychology (Department, Vol. 34, pp. 331–378). Waterloo, Ontario, Canada: Academic Press.

The theory outlined in the present chapter adopts a cognitive approach to motivation. In the pages that follow we describe a research program premised on the notion that the cognitive treatment affords conceptual and methodological ad- vantages enabling new insights into problems of motivated action, self-regulation, and self-control. We begin by placing our work in the broader historical context of social psychological theorizing about motivation and cognition. We then present our theoretical notions and trace their implications for a variety of psychological issues, including activity experience, goal commitment, choice, and substitution. The gist of the chapter that follows describes our empirical research concerning a broad range of phenomena informed by the goal-systemic analysis.

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Reference 2

Hwang, S., Park, H., Sohn, M., Yoo, D., Han, C., & Joo, J. (2022). Goal based bundling: A behaviorally informed strategy to combine multiple smart products. In G. Bruyns & H. Wei (Eds.), IASDR (International Association of Societies of Design Research) 2021 – [ _ ] With Design: Reinventing Design Modes (pp. 2888–2901). Singapore: Springer.

Contemporary electronic manufacturers struggle with how to develop attractive bundles by combining their existing smart products. In the present work, we propose Goal Based Bundling (GBB) by drawing on the academic research of goal systems theory (Kruglanski et al. 2018) and shed light on two previously ignored aspects of bundling strategy: service and glue product. We applied our GBB to a collaborative project with Samsung Electronics, whose goal was to develop new product bundles for kids by combining multiple smart home products. We constructed a framework of Samsung Electronics’ smart products and then visualized it on its sales website. A UI design conveying the value of smart products bundle was developed based on GBB structure. We discuss the process and the result of our project to provide insights into the product managers who combine existing smart products to develop a bundle.