Distinguishing forced versus discretionary replacements in new product diffusion models

In many product categories of durable goods such as TV, PC, and DVD player, the largest component of sales is generated by consumers replacing existing units. Aggregate sales models proposed by diffusion of innovation researchers for the replacement component of sales have incorporated several different replacement distributions such as Rayleigh, Weibull, Truncated Normal and Gamma. Although these alternative replacement distributions have been tested using both time series sales data and individual-level actuarial “life-tables” of replacement ages, there is no census on which distributions are more appropriate to model replacement behaviour. In the current study we are motivated to develop a new “modified gamma” distribution by two reasons. First we recognise that replacements have two fundamentally different drivers – those forced by failure and early, discretionary replacements. The replacement distribution for each of these drivers is expected to be quite different. Second, we observed a poor fit of other distributions to out empirical data. We conducted a survey of 8,077 households to empirically examine models of replacement sales for six electronic consumer durables – TVs, VCRs, DVD players, digital cameras, personal and notebook computers. This data allows us to construct individual-level “life-tables” for replacement ages. We demonstrate the new modified gamma model fits the empirical data better than existing models for all six products using both a primary and a hold-out sample.

Service enhanced manufacturing in the building and construction product system

This report examines the involvement of manufacturers in value-adding through service-enhancement of product offerings. This focus has been prompted by:  emphasis in the knowledge-economy literature on the increasing role played by services in economic growth; and  recent analysis which suggests that the most dynamic sector of many economies is an integrated manufacturing-services sector (see Part One of this report). The report initially describes the emergence of an integrated manufacturing-services sector in the context of increasingly knowledge-based economic systems. Part Two reports on the results of a survey of manufacturers in the building and construction product system, investigating their involvement in service provision. Parts Three and Four present two case studies of exemplary manufacturers involved in adding value to their manufacturing operations through services offered on building and construction projects. The report examines manufacturers of materials, products, equipment and machinery used on building and construction projects. The two case study sections of the report, in part, focus on a major project undertaken by each of the manufacturers. This project element of activity is focussed on (as opposed to wholesale or retail supply), because this area of activity involves a broader array of service-enhancement mechanisms and more complex bundling of products and services.

The building and construction product system : the emergence of new innovative businesses

This report examines the conditions surrounding the emergence and growth of innovative new firms in the building and construction product system. The focus on innovative new firms was prompted by diverse literatures which highlight the pivotal roles of innovation and new business activity in driving economic growth. 9 The literature concludes that the founders of new firms are likely to be innovative and that new firms are likely to promote industry innovation and efficiency. New businesses have also been found to have positive employment impacts and to grow faster than established firms.

Mapping the building and construction product system : preliminary report

This Preliminary Report has been prepared by researchers at The Australian Expert Group in Industry Studies (AEGIS) for the Commonwealth Department of Industry, Science and Resources. It is intended to provide a preliminary 'product system map' of the building and construction industries which defines the system, identifies the major segments, describes key industry players and institutions and provides the basis for exploring relationships, innovation and information flows within the industries. This Preliminary Report is the first of a series of five which will explore the building and construction product system in some depth. This first report does not present original research, although it does include some new interview data and analysis of a variety of written sources. This report is rather a reformulation of existing statistical and analytical material from a product system-based perspective. It is intended to provide the basis for subsequent studies by putting what is already known into an alternative framework and allowing us to see it through a new lens.

The dynamics and performance of the building and construction product system

During 1999 the Department of Industry, Science and Resources (ISR) published 4 research reports it had commissioned from the Australian Expert Group in Industry Studies (AEGIS), a research centre of the University of Western Sydney, Macarthur. ISR will shortly publish the fifth and final report in this series. The five reports were commissioned by the Department, as part of the Building and Construction Action Agenda process, to investigate the dynamics and performance of the sector, particularly in relation its innovative capacity. Professor Jane Marceau, PVCR at the University of Western Sydney and Director of AEGIS, led the research team. Dr Karen Manley was the researcher and joint author on three of the five reports. This paper outlines the approach and key findings of each of the five reports. The reports examined 5 key elements of the ‘building and construction product system’. The term ‘product system’ reflects the very broad range of industries and players we consider to contribute to the performance of the building and construction industries. The term ‘product system’ also highlights our focus on the systemic qualities of the building and construction industries. We were most interested in the inter-relationships between key segments and players and how these impacted on the innovation potential of the product system. The ‘building and construction product system’ is hereafter referred to as ‘the industry’ for ease of presentation. All the reports are based, at least in part, on an interviewing or survey research phase which involved gathering data from public and private sector players nationally. The first report ‘maps’ the industry to identify and describe its key elements and the inter-relationships between them. The second report focuses specifically on the linkages between public-sector research organisations and firms in the industry. The third report examines the conditions surrounding the emergence of new businesses in the industry. The fourth report examines how manufacturing businesses are responding to customer demands for ‘total solutions’ to their building and construction needs, by providing various services to clients. The fifth report investigates the capacity of the industry to encourage and undertake energy efficient building design and construction.

Data and process requirements for product recall coordination

When an organisation becomes aware that one of its products may pose a safety risk to customers, it must take appropriate action as soon as possible or it can be held liable. The ability to automatically trace potentially dangerous goods through the supply chain would thus help organisations fulfill their legal obligations in a timely and effective manner. Furthermore, product recall legislation requires manufacturers to separately notify various government agencies, the health department and the public about recall incidents. This duplication of effort and paperwork can introduce errors and data inconsistencies. In this paper, we examine traceability and notification requirements in the product recall domain from two perspectives: the activities carried out during the manufacturing and recall processes and the data collected during the enactment of these processes. We then propose a workflow-based coordination framework to support these data and process requirements.

Diversity in product familiarity across younger and older adults

This paper reports on the findings of a completed experiment examining levels of familiarity in younger and older adults. Research has shown that older adults use products less intuitively than younger adults, and that familiarity is an essential element of intuitive interaction. This finding influenced the decision to focus on familiarity and to investigate why older adults use products less intuitively than younger adults. By identifying and understanding the differences in familiarity, it is hypothesised that designers will be able to design more usable products for older adults. An empirical study was conducted, investigating the differences in familiarity between younger and older adults with contemporary products. Younger adults demonstrate significantly higher levels of familiarity compared to older adults, and the three groups of older adults demonstrated no significant differences between them. The implications of this finding is discussed.

Grocery product pricing and Australian supermarket consumers : gender differences in perceived importance levels

Grocery shopping is an essential and routine activity. Although long regarded the responsibility of the female spouse, modern social and demographic shifts are causing men to become more engaged in this task. This is the first study to analyse gender differences with respect to the criterion of grocery product price within an Australian supermarket retail environment. A stratified sample of 140 male and 140 female grocery shoppers was surveyed. Results showed that men considered price attributes of products as being significantly lower in importance than did women. Additionally, men displayed lower levels of price nvolvement, reported referencing shelf price to a lesser extent, and gave lesser consideration to promotional tactics focusing on low price. Although men on average buy fewer items than do women, they spend more money for each item they purchase. This higher expenditure per item appears to be driven, at least in part, by a lack of price referencing. This research has implications for gender studies and consumer behaviour disciplines in relation to grocery shopping.

Feasibility of using health data sources to inform product safety surveillance in Queensland : a report for the Queensland Injury Prevention Council

This report provides an evaluation of the current available evidence-base for identification and surveillance of product-related injuries in children in Queensland. While the focal population was children in Queensland, the identification of information needs and data sources for product safety surveillance has applicability nationally for all age groups. The report firstly summarises the data needs of product safety regulators regarding product-related injury in children, describing the current sources of information informing product safety policy and practice, and documenting the priority product surveillance areas affecting children which have been a focus over recent years in Queensland. Health data sources in Queensland which have the potential to inform product safety surveillance initiatives were evaluated in terms of their ability to address the information needs of product safety regulators. Patterns in product-related injuries in children were analysed using routinely available health data to identify areas for future intervention, and the patterns in product-related injuries in children identified in health data were compared to those identified by product safety regulators. Recommendations were made for information system improvements and improved access to and utilisation of health data for more proactive approaches to product safety surveillance in the future.

Product labelling can confer sustained increases in expected and actual satiety

Expected satiety has been shown to play a key role in decisions around meal size. Recently it has become clear that these expectations can also influence the satiety that is experienced after a food has been consumed. As such, increasing the expected and actual satiety a food product confers without increasing its caloric content is of importance. In this study we sought to determine whether this could be achieved via product labelling. Female participants (N=75) were given a 223-kcal yoghurt smoothie for lunch. In separate conditions the smoothie was labelled as a diet brand, a highly-satiating brand, or an ‘own brand’ control. Expected satiety was assessed using rating scales and a computer-based ‘method of adjustment’, both prior to consuming the smoothie and 24 hours later. Hunger and fullness were assessed at baseline, immediately after consuming the smoothie, and for a further three hours. Despite the fact that all participants consumed the same food, the smoothie branded as highly-satiating was consistently expected to deliver more satiety than the other ‘brands’; this difference was sustained 24 hours after consumption. Furthermore, post-consumption and over three hours, participants consuming this smoothie reported significantly less hunger and significantly greater fullness. These findings demonstrate that the satiety that a product confers depends in part on information that is present around the time of consumption. We suspect that this process is mediated by changes to expected satiety. These effects may potentially be utilised in the development of successful weight-management products.

Ageing and use of complex product interfaces

This paper presents an experiment designed to investigate if redundancy in an interface has any impact on the use of complex interfaces by older people and people with low prior-experience with technology. The important findings of this study were that older people (65+ years) completed the tasks on the Words only based interface faster than on Redundant (text and symbols) interface. The rest of the participants completed tasks significantly faster on the Redundant interface. From a cognitive processing perspective, sustained attention (one of the functions of Central Executive) has emerged as one of the important factors in completing tasks on complex interfaces faster and with fewer of errors.

Using visuals to explore the contextual aspects of user-product interactions

Experience underlies all kinds of human knowledge and it is dependent on context. People’s experience within a particular context-of-use determines how they interact with products. Methods employed in this research to elicit human experience have included the use of visuals. This paper describes two empirical studies that employed visual representation of concepts as a means to explore the experiential and contextual component of user- product interactions. One study employed visuals that the participants produced during the study. The other employed visuals that the researcher used as prompts during a focus group session. This paper demonstrates that using visuals in design research is valuable for exploring and understanding the contextual aspects of human experience and its influence on people’s concepts of product use.

Comparative study of DFSS in product and service innovation

Six sigma has proven itself as a major quality initiative in the last two decades. It is a philosophy which provides a systematic approach to applying numerous tools in the framework of several quality improvement methodologies. The most widely used six sigma methodology is DMAIC, which is best suited for improving existing processes. In order to build quality into the product or service, a proactive approach like Design for Six Sigma (DFSS) is required. This paper provides an overview of DFSS, product innovation, and service innovation. The emphasis is on comparing how DFSS is applied differently in product and service innovation. This paper contributes by analysing the existing literature on DFSS in product and service innovation. The major findings are that the DFSS approach in services and products can be differentiated along the following three dimensions: methodology, characteristics, and technology.