IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v30y2011i3p416-429.html
   My bibliography  Save this article

Gut Liking for the Ordinary: Incorporating Design Fluency Improves Automobile Sales Forecasts

Author

Listed:
  • Jan R. Landwehr

    (Center for Customer Insight, University of St. Gallen, CH-9000 St. Gallen, Switzerland)

  • Aparna A. Labroo

    (Booth School of Business, University of Chicago, Chicago, Illinois 60637)

  • Andreas Herrmann

    (Center for Customer Insight, University of St. Gallen, CH-9000 St. Gallen, Switzerland)

Abstract

Automotive sales forecasts traditionally focus on predictors such as advertising, brand preference, life cycle position, retail price, and technological sophistication. The quality of the cars' design is, however, an often-neglected variable in such models. We show that incorporating objective measures of design prototypicality and design complexity in sales forecasting models improves their prediction by up to 19%. To this end, we professionally photographed the frontal designs of 28 popular models, morphed the images, and created objective prototypicality (car-to-morph Euclidian proximity) and complexity (size of a compressed image file) scores for each car. Results show that prototypical but complex car designs feel surprisingly fluent to process, and that this form of surprising fluency evokes positive gut reactions that become associated with the design and positively impact car sales. It is important to note that the effect holds for both economy (functionality oriented) and premium (identity oriented) cars, as well as when the above-mentioned traditional forecasting variables are considered. These findings are counter to a common intuition that consumers like unusual-complex designs that reflect their individuality or prototypical-simple designs that are functional.

Suggested Citation

  • Jan R. Landwehr & Aparna A. Labroo & Andreas Herrmann, 2011. "Gut Liking for the Ordinary: Incorporating Design Fluency Improves Automobile Sales Forecasts," Marketing Science, INFORMS, vol. 30(3), pages 416-429, 05-06.
  • Handle: RePEc:inm:ormksc:v:30:y:2011:i:3:p:416-429
    DOI: 10.1287/mksc.1110.0633
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.1110.0633
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mksc.1110.0633?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Aparna A. Labroo & Ravi Dhar & Norbert Schwarz, 2008. "Of Frog Wines and Frowning Watches: Semantic Priming, Perceptual Fluency, and Brand Evaluation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(6), pages 819-831, October.
    2. Meghan Busse & Jorge Silva-Risso & Florian Zettelmeyer, 2006. "$1,000 Cash Back: The Pass-Through of Auto Manufacturer Promotions," American Economic Review, American Economic Association, vol. 96(4), pages 1253-1270, September.
    3. Terry Elrod, 1988. "Choice Map: Inferring a Product-Market Map from Panel Data," Marketing Science, INFORMS, vol. 7(1), pages 21-40.
    4. Anand, Punam & Holbrook, Morris B & Stephens, Debra, 1988. "The Formation of Affective Judgments: The Cognitive-Affective Model versus the Independence Hypothesis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(3), pages 386-391, December.
    5. Peter S. Fader & James M. Lattin, 1993. "Accounting for Heterogeneity and Nonstationarity in a Cross-Sectional Model of Consumer Purchase Behavior," Marketing Science, INFORMS, vol. 12(3), pages 304-317.
    6. Wagner A. Kamakura & Rajendra K. Srivastava, 1986. "An Ideal-Point Probabilistic Choice Model for Heterogeneous Preferences," Marketing Science, INFORMS, vol. 5(3), pages 199-218.
    7. S. Sriram & Pradeep K. Chintagunta & Ramya Neelamegham, 2006. "Effects of Brand Preference, Product Attributes, and Marketing Mix Variables in Technology Product Markets," Marketing Science, INFORMS, vol. 25(5), pages 440-456, September.
    8. Gerard J. Tellis & Joseph Johnson, 2007. "The Value of Quality," Marketing Science, INFORMS, vol. 26(6), pages 758-773, 11-12.
    9. Peter N. Golder & Gerard J. Tellis, 2004. "Growing, Growing, Gone: Cascades, Diffusion, and Turning Points in the Product Life Cycle," Marketing Science, INFORMS, vol. 23(2), pages 207-218, December.
    10. Jonah Berger & Chip Heath, 2007. "Where Consumers Diverge from Others: Identity Signaling and Product Domains," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(2), pages 121-134, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    2. Roy, Abhik, 1998. "An error components approach to segmentation and modelling brand choice dynamics," Journal of Economic Psychology, Elsevier, vol. 19(4), pages 463-484, August.
    3. Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
    4. Sood, Ashish & Kappe, Eelco & Stremersch, Stefan, 2014. "The commercial contribution of clinical studies for pharmaceutical drugs," International Journal of Research in Marketing, Elsevier, vol. 31(1), pages 65-77.
    5. Jorge Silva-Risso & Irina Ionova, 2008. "—A Nested Logit Model of Product and Transaction-Type Choice for Planning Automakers' Pricing and Promotions," Marketing Science, INFORMS, vol. 27(4), pages 545-566, 07-08.
    6. Ronald Goettler & Ron Shachar, 2000. "Estimating Product Characteristics and Spatial Competition in the Network Television Industry," Econometric Society World Congress 2000 Contributed Papers 1691, Econometric Society.
    7. Paulo Albuquerque & Bart J. Bronnenberg, 2009. "Estimating Demand Heterogeneity Using Aggregated Data: An Application to the Frozen Pizza Category," Marketing Science, INFORMS, vol. 28(2), pages 356-372, 03-04.
    8. Wang, Feng & Liu, Xuefeng & Fang, Eric (Er), 2015. "User Reviews Variance, Critic Reviews Variance, and Product Sales: An Exploration of Customer Breadth and Depth Effects," Journal of Retailing, Elsevier, vol. 91(3), pages 372-389.
    9. Leeflang, Peter S.H. & Bijmolt, Tammo H.A. & van Doorn, Jenny & Hanssens, Dominique M. & van Heerde, Harald J. & Verhoef, Peter C. & Wieringa, Jaap E., 2009. "Creating lift versus building the base: Current trends in marketing dynamics," International Journal of Research in Marketing, Elsevier, vol. 26(1), pages 13-20.
    10. Jennifer K D’Angelo & Kristin Diehl & Lisa A Cavanaugh, 2019. "Lead by Example? Custom-Made Examples Created by Close Others Lead Consumers to Make Dissimilar Choices," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 46(4), pages 750-773.
    11. Chadwick J. Miller & Daniel C. Brannon & Jim Salas & Martha Troncoza, 2021. "Advertising, incentives, and the upsell: how advertising differentially moderates customer- vs. retailer-directed price incentives’ impact on consumers’ preferences for premium products," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1043-1064, November.
    12. Maystre, Nicolas & Olivier, Jacques & Thoenig, Mathias & Verdier, Thierry, 2014. "Product-based cultural change: Is the village global?," Journal of International Economics, Elsevier, vol. 92(2), pages 212-230.
    13. Koo, Jayoung & Im, Hyunjoo, 2019. "Going up or down? Effects of power deprivation on luxury consumption," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 443-449.
    14. Grigolon, Laura & Leheyda, Nina & Verboven, Frank, 2016. "Scrapping subsidies during the financial crisis — Evidence from Europe," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 41-59.
    15. Qin, Ruwen & Nembhard, David A., 2012. "Demand modeling of stochastic product diffusion over the life cycle," International Journal of Production Economics, Elsevier, vol. 137(2), pages 201-210.
    16. Johanna Lena Dahlhausen & Cam Rungie & Jutta Roosen, 2018. "Value of labeling credence attributes—common structures and individual preferences," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 741-751, November.
    17. Bella Rozenkrants & S Christian Wheeler & Baba Shiv & Gita JoharEditor & Derek RuckerAssociate Editor, 2017. "Self-Expression Cues in Product Rating Distributions: When People Prefer Polarizing Products," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(4), pages 759-777.
    18. Marco Cucculelli, 2018. "Firm age and the probability of product innovation. Do CEO tenure and product tenure matter?," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 153-179, January.
    19. Korenok, Oleg & Hoffer, George E. & Millner, Edward L., 2010. "Non-price determinants of automotive demand: Restyling matters most," Journal of Business Research, Elsevier, vol. 63(12), pages 1282-1289, December.
    20. Maria Antonietta Raimondo & Gaetano Nino Miceli & Stefania Farace, 2013. "Self o mass branding? La relazione tra personalizzazione e marca," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(4), pages 149-171.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:30:y:2011:i:3:p:416-429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.