The Notion of Value and Design Suzan BOZTEPE* *Institute of Design, Illinois Institute of Technology, 350 N. LaSalle Street, Chicago, IL 60610 USA, [email protected] Abstract: Globalization of businesses brings opportunities as well as failure. In today’s volatile economy, creating superior value for users is shown as a way of achieving competitive advantage. However, there is a little agreement of what exactly constitutes user value and how design can contribute to its creation. This paper examines the notion of value from sociological, anthropological, and business perspectives, reflecting on what each has to offer to design. A conception of value as a practical or symbolic benefit of a product which arises from the interaction with user and facilitates superior user experience is advocated. Finally, the role of design in creation of value is questioned and a framework for research into value is suggested. Key words: User Value, Globalization 1. Introduction There is an old marketing saying that if it flies in Peoria it will fly everywhere else. Levitt’s [1] words explain the mindset behind it: “Everyone in the increasingly homogenized world market wants products and features that everybody else wants. If the price is low enough, they will take highly standardized world products, even if these aren’t exactly what mother said was suitable.” Today, this one size fits all rationale is loosing its relevance as there is an increasing realization that we are far from a global cultural homogenization. Moreover, low cost and quality are becoming a common equity for all enterprises, not only global but also local. In this context, creating superior value for customers is pointed as the next source of sustainable competitive advantage [2-8]. According to Kim and Maugborne [4-5] providing value for users/customers is creating ‘quantum leaps’ in their experiences with product. That, they argue, results in opening up of a new market space and making competition irrelevant. The issue does not seem to be whether companies should compete on user value delivery, but rather how to do it and how design can contribute to user value creation. However, there is no established and accepted body of theory of value that can be guiding for design. What further complicates the matter is that there is even a little agreement on the use of the term value. It oscillates between concepts like economic returns and moral stands. For example, there is a general belief among designers that design can ‘add value’ by devising products with ‘increased value’ which ‘embody social values’ [9]. If creating value for users becomes a key domain when designing for global markets then we need a better understanding of (1) what constitutes value, (2) the role of design in creation of value for users and (3) the methods and tools that facilitate value creation. The objective of this paper is twofold: first, to summarize and discuss theories and concepts developed in other disciplines which can offer a useful point of departure for understanding of the notion of value in relation to design field; and second, to suggest initial view and potential framework for applied design research into value. 2. Defining Value The confusion on the use of the term value is not unique to design. It spans number of disciplines including economics, sociology, anthropology, psychology and marketing. Within this spectrum Graeber [10] identifies main approaches to the definition of value as: (1) the notion of ‘values’ as “conception of what is ultimately good, proper or desirable in human life”, (2) in economic and business sense a person’s willingness to pay the price of a good in terms of cash in return for certain product benefits, and (3) value as a meaning and meaningful difference, and (4) value as experience. The purpose here is neither to present an exhaustive list of uses of the term, nor to present a comprehensive review of approaches, but to explore how they come together in the domain of design. 2.1 Value as Enduring Belief System An important distinction is made in the use of the term value in a singular and a plural form [9-10]. The sense of values in plural refers to personal beliefs. This notion of value is described by Rokeach [11] as “… an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence” Values are socially and culturally defined and justified standards that determine actions, preferences and attitudes including the ones towards objects. However, values are different from norms and attitudes in that “…they transcend specific situations and have to do with generalized modes of conduct (instrumental) and end states of existence (terminal). Attitudes are different, merely the surface, or more specific, manifestations of these underlying values”. Here the emphasis on the unchanging quality of values requires special attention as it seems conflicting with design. Herbert Simon [12] defined design as the process by which we devise “courses of action aimed at changing existing situations into preferred ones”. Such change often includes not only tangible products but also human behaviors and beliefs. That is especially evident in global markets where new products are introduced together with new messages, lifestyles and beliefs. So, if values have a durable nature how can technology and design introduce change without causing social friction? Is it possible, to establish a direct relationship between products and personal/social values? 2.2 Value as Exchange Terms such as ‘consumer value’ or ‘customer value’ seem to examine the value concept within the human-artifact relation, providing more relevant ground for discussion in design. However, reviewing some of these definitions reveals that they are firmly placed within economic paradigm. Value is defined in terms of the monetary sacrifice people are willing to make for a product [3, 13-14]. The emphasis is on the point of exchange and cash is seen as a fundamental index of value. Such view is problematic for design as it overlooks the situation of product use. In the study on the assignment of value to fruit beverages, Zeithaml [14] points out that use related, non-monetary costs such as time and effort are important for users and should be acknowledged as well. In the evaluation of value participants brought up issues such as sales and coupons, but also the ease of preparation of juice, the amount wasted, and children’s willingness to drink the beverage. Marxist [15] theory provides a useful distinction here. It conceives a dual nature of the object value – use value and exchange value. Marx does not elaborate on the use value but sees object value primarily in terms of the labor necessary for its manufacture. Independent of the labor, use-value relates to the utility of the physical properties of the product, which is realized only upon its use. Clearly design is primarily concerned with use value. As such it has to deal with issues such as efficiency, performance and fit of the product to specific activities, tasks. It has to make sure that objects function as extensions of human body and mind [16] and that they fulfill actual needs. In establishing the relation between value and needs, however, it shouldn’t be forgotten that “we experience all needs (including physical ones) within cultures” [17]. For example, each culture has its own way of cleaning the body which in turn reflects to the assessment of what is useful in the design of bathroom. For example, while in western culture a bathtub designed for lying is valued, in Japanese culture a smaller one accommodating sitting posture is more beneficial, and in Turkish culture bathtub is not functional at all because cleaning oneself should involve running water. On the other hand, design is also concerned with exchange value by making products chosen, distinguishing them from competitive ones and reducing prices. However, taken to extremes this may result in churning out products with superfluous differences in forms and materials aiming only to simulate desires [18]. The relation between value and desire is developed by Simmel [19]. He suggests looking at how much one desires or fears of loosing a product as an indicator of its value. Accordingly, high value is attributed to something that is desired by many by subject to scarcity. Simmel [19] talks of value and price almost interchangeably here. Yet, there are range of objects such as gifts which are neither scarce nor high priced or utilitarian, nevertheless are highly valued. The theory of value as exchange seems to overlook this group of objects. Here we need to turn to approaches to value that take into account the symbolic meanings that can be attributed to goods. 2.3 Value as a Meaning and Difference According to the notion of value as a meaningful difference something takes on meaning and value only by contrasting with other elements in the same system [9]. Notice that meaning and value are used almost interchangeably.“Meaning is a cognitively constructed relationship. It selectively connects features of an object and features of its (real environment or imagined) context into a coherent unity.” [20]. Since value relates to meaning it is similarly understood in a context of other things, situations, and users. The so called global products, for example, can gain value only in the local context. A point well illustrated by Whirlpool’s attempt to introduce its global washer to Indian market. The product faced failure because of its lack of consideration of different types of Indian clothing, and the unstable infrastructure. Saris and other clothes which are nothing but long pieces of fabric would catch and tear in their washing machine [21, 22]. The notion of value as meaning and meaningful difference calls for consideration not only of the physical contexts in which products are used but also of how they are made sense of. Csikszentmihalyi’s [23] study illustrates the huge capacity of people to invest objects with meanings that sometimes have nothing to do with their utility and meanings prescribed by the producers [23]. People often value objects not for what they do, or what they are made of but for what they signify. In Veblen’s [24] conception of ‘conspicuous consumption’ for example, goods serve as an index of social status. Bourdieu [25] sees that interaction with goods can serve as a means of ‘capital’ accumulation, namely economic (e.g. cash and assets), cultural (e.g. knowledge, skills, formal education), social (e.g. networks of interpersonal relations) and symbolic (the honor and prestige accumulated through one’s practices). In some societies the latter can be even more useful. Baudrillard [26] claims that such sign value displaces use value and exchange value. Indeed, it is quite common that people in developing countries buy western goods not only for their utility but because of their association with modernity and lifestyles of their purveyors. An example of such consumption may be found among the Muria Gonds where “the richer fisherman were spending their excess earnings to purchase unusable television sets [having no access to electricity], to build ‘garages’ onto houses to which no automobiles had access, and to install rooftop cisterns into which water never flows” [27]. Global and multinational companies have been relaying and fostering aspiration toward western goods as a mean for boosting sales. However, more and more local businesses, such as the Malaysian Joleebee or Indian Arvind Mills, successfully compete against global giants with products which better resonate with local ways of life [28-29]. 2.4 Value as an Experience It is clear that in relating value to design it is difficult to assume one of the definitions reviewed so far as encompassing. As Graeber [10] rightfully points, each one has fallen into problems for lack of sufficient consideration of the others. A potential for reconciling the different approaches is offered by the perspective of value as action or experience. Drawing on Munn’s [30] work, Graeber [10] suggests that the value of goods arises from the consequences they provide or have potential to provide. OXO Good Grips potato peeler, for instance, is valued not for its material properties but because these properties lead to easy and comfortable peeling experience. As, Cagan and Vogel point the better the experience, the greater the value of the product to the user [31]. Moreover, people are willing to pay much more for products providing better experience [32]. Table 1. Different definitional approaches to value Value arises from Values as Belief System Deep social structures Value as Exchange Price and desire for a product Value as Use Products properties and their fitness to task Value as Meaning and Sign Social and Cultural Context Value as Experience Interaction between user and product Value is Durable Objectively determinable in terms of price Objectively determinable in terms of product’s material properties Subjective, almost arbitrary Both objective and subjective Unit of analysis Deep social structures Exchange situation Use situation Communication situation Any point of experience with product Product is Mean to higher ends Sacrifice made by user measured in terms of cash Utility Sign Enabling an experience Implication for design In global markets Need to resonate with different local belief systems Need for distinguishing product from competitive ones, make them desirable Need to meet specific needs and ways of doing things Need for understanding of local context and social- cultural meanings Need for understanding activities contexts, meanings, and beliefs which make experience Experiences are defined as “events that engage individuals in a personal way” [8]. In fact any time people interact with product they engage in experience. Experiences are context and situation specific - changing from one set of immediate circumstances, time and location to another. So is the value [33]. Consider the example of owning an automobile. Having a car in a small US town provides a convenience, increase accessibility to different places, such as stores, sites of interest etc. However, the same car in a metropolitan city like New York, where parking spaces are virtually unavailable and traffic is dense, is a burden and restricts one’s capability to move around. Then, compatibility with the context, which includes a range of tangible and intangible systems is necessary. Experiences with product also relate to the meaning they add to people’s lives, in terms of symbolism. Looking to a rare piece of art can be the experience of a lifetime. Yet, only for a person who comes from socially and culturally defined system that assigns significance to art. Value as experience does not provide an exclusive alternative to other definitions, but rather encompasses many aspects of them. Table 1 compares the different approaches to value. 3. Value Typology One of the major problems the different approaches to value reviewed so far is that they treat value as one dimensional phenomenon; it is related either to utility, exchange price or significance. Heskett [34] notes that it is often difficult to talk about utility/use or significance/meaning of object separately because in practice they are closely interwoven. In fact he sees them both as a part of the definition of product function. Holbrook’s [33] typology of value, derived from axiology, allows us to think of different perspectives of value as coexisting. He classifies user value, as shown in Table 2, along three continuous dimensions (1) intrinsic-extrinsic, (2) self oriented-other oriented, (3) active-reactive. Intrinsic-extrinsic distinction relates to whether a product is valued as an end itself or for means or functions that help users to accomplish certain ends. For example, Stark’s Juicy Salif is usually assigned intrinsic value, because it is appreciated for an end itself rather than as a mean for squeezing lemons. Self oriented-other oriented distinction corresponds to whether a product is valued because of its benefit to the user or because of the reactions of others. A car, for example, has a self-oriented value because of its functional qualities, but it also has other oriented value because it signifies a social status. The other oriented dimension of value cannot be confronted without encountering social and cultural factors. Active-reactive is a distinction about whether there is a manipulation to a product by the user or to the user by the product. Art objects, for instance have reactive value, because their benefit results from a passive admiration. Table 2. User Value Types, Adapted from Holbrook (1999) Extrinsic Intrinsic Utilitarian Emotional Efficiency (e.g. Convenience) Play (e.g. Fun) Excellence(e.g. Quality) Aesthetics (e.g. Beauty) Social Altruistic Status (e.g. Impression Management) Ethics (e.g. Justice) Esteem(e.g. Possession) Spirituality (e.g. Sacredness) Active Self oriented Reactive Active Other oriented Reactive Simplifying Holbrook’s [33] typology of customer value, we can identify four broad value types: (1) Utilitarian Value refers the way a product helps achieving practical ends; (2) Social Value is product’s instrumentality in achieving certain social objective, such as affirmation of a social status; (3) Emotional Value is defined as the benefit of a product in terms of the emotions it provokes; and finally (4) Altruistic Value is the sense of a being right or good, as is the case with the ‘green’ products. For designers thinking in terms of different value types as coexisting brings multiple levels of user considerations. But is the value something defined by designers? 4. The Role of Design in Value Creation Tackling the question of whether design creates value is impossible without entering to another debatable issue, namely the location of value. Does the value reside in a product or in users’ subjective experiences and perceptions? Here once again different theoretical streams have different say. For Marx use value is “conditioned by the physical properties of the commodity, and so has no existence apart from the latter” [15]. This view is resonated in Levitt’s [35] definition of a product as “a promise, a cluster of value expectations.” Here value is very much viewed as an inherent part of the product. According to Porter’s ‘value chain’ value is added through the different stages of product conception, production and distribution [36]. Giving no account for users’ capability of imbuing objects with meaning and value, such extreme objectivist approach is nothing but easily refutable [33]. The sociological and anthropological approaches, on the other hand, posit that value is determined through social and cultural constructs and objects cannot 'contain' value. In Veblen [24] and Baudrillard’s [26] theories value does not necessarily reside in objects tangible materiality, but as means of expression. If we view value as arising entirely out of social context, that leaves no room for design to contribute to the formation of value. Ultimately it is the people who come in contact with the objects that ascribe their meaning and value, but design has the ‘persuasiveness’, as Buchanan puts it [37]. Design starts with intention to generate a sense of value and uses all available means including: • Form, color, texture and materials - the primary means to enable making sense of objects, provoke emotional responses and communicate utility. • Symbolic elements and metaphors - to tap into the communicative aspects of object value. • Archetypes and historical forms - rooted deeply in the collective unconscious also serve as means to embed objects into the fabric of society. • Affordances - to denote what objects can do. • Stories and myths created around objects - to create connections with beliefs, and desires. Therefore, as Heskett [34] urges, perhaps we should consider value in the interplay between designer’s intentions and users needs, perceptions and goals. It is at the interface of the two that the value is created [33-34]. The means-end model attempts to explain how the value is formatted in that interface, the connection between product properties and user [11, 38-40]. It suggests that users think of value in means ends way. Product attributes, which take place on the bottom of means-ends chain, lead to practical outcomes, and to the psychological or social payoffs such as happiness, comfort, accomplishment and ultimately to the social and personal values [38]. Porter [40] refers to the product attributes as signals, in a sense that they signal more abstract level consequences. Zeithaml [14] these distinguishes between intrinsic or extrinsic cues or signals. Intrinsic cues are related to physical configuration of the product. Extrinsic cues, on the other hand, are product related but not part of the product, such as brand name, price, and level of advertising. Contrary to the colloquial belief that brand and price are the key factors in assignment of value, Zeithaml [14] suggests that users rely more on the inartistic cues, except when intrinsic ones are not available, or their evaluation requires too much effort and time. It is possible for designers to define product characteristics, in terms of look and feel, performance, dimensions and costs, but what characteristics will be more dominant, how they will be perceived by users and how they will be related to more abstract consequences is less easy to specify. It requires a better understanding of higher level user goals, and beliefs and working backwards to the specific product characteristics. In this process designers’ intuitive knowledge about society they live in can be helpful to some extend. However, when it comes to global markets, where designer are detached from users’ physical, social and cultural context, there is a need for more methodological approach for understanding the means of value assignment. As Woodruff [7] suggests if the focus is on value delivery, there is a need for a corresponding set of "tools of customer value.” 5. Methodological Approaches for Understanding Value In the early 80s several inventories, such as Values and Lifestyles (VALS), have been developed to measure ‘consumer value’ [40]. The claim of such methods is to segment people according to their enduring beliefs. VALS, for instance, consists of categories such as innovators, achievers, thinkers etc. While these categories have basis in reality they are highly stereotypical and concerned only with generalities. Such groupings can help designers to establish the general positioning of a product but they fall short in helping designers identify details that make the difference in people’s experience with a product. Individual Product Properties Consequences Personal Values Figure 1. Elements of the means-ends model [38]. Other tools, which have also been developed in marketing field, build on the means-ends model, such as Gutman’s laddering method [38]. These methods too are based on the assumption that values, in sense of deeply held beliefs, supply the ultimate ends towards which the action is directed [11]. Such perception is challenged by scholars like Swidler [42] who suggest to shift focus from values as the ultimate determinants of the ends, to the ‘tool kit’ of habits, skills, styles, and beliefs from which people construct “strategies of action”. People in different cultures may share common values (in sense of believes and aspirations) while continue to have different behaviors and experiences with products. Understanding user’s goal is essential but the same goals can be achieved in many different ways. For example, keeping in touch with friends can be done by e-mails, letters, chats, phone calls etc. So, if we build on the notion of value as experience we better look at these actions and activities. As Abbott suggests,“[e]xperiences are attained through activities” [43]. By examining activities surrounding the use of product it is possible to learn much more about specific ways through which products lead to desirable consequences. Insights derived from analysis of activities, it is claimed, would enable designers to make fundamental improvements which lead to substantial new value for users [44]. Second shortcoming of means-ends based models is that it treats value assignment as a cognitive process and does not account for contextual factors. It has been already discussed that value can change from one set of immediate circumstances, time and location to another [33]. Therefore, a research into value can not afford to ignore the situational and cultural context. Taking into account context requires analysis of its elements, such as the tangible systems of objects and environments that surround a product and activity. It also requires paying attention to intangible systems of beliefs, traditions and habits which also form people’s experience with product. Figure 2 show a revisited version of the means ends model which includes situational and cultural factors. It also positions social and personal values as influencers in the user’s experience with product and their value assignment rather than ultimate determinants. Cultural Context Situational Context Product Intrinsic Extrinsic Cues User Goals activities System of objects, users environments System of values meanings, beliefs behaviors, habits Figure 2. A revisited means-ends model A future direction of my study will test this framework and the effectiveness of focusing on user activities and context in which take place through an ethnographic research. It is hoped that understanding the relation between user value cultural and situational factors will have practical implications for design in global setting. 6. 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