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Design, Emotions, and Willingness to Pay

Abstract 
Purpose 
The purpose of this chapter is to explore the differences in consumers’ willingness to pay for different types of design attributes due to different levels of specific anticipatory emotions evoked by them. The research aims to show how firms can benefit by leveraging the findings that different types of design attributes – that is, functionality, aesthetics, and environmental sustainability – affect profit margin per unit differently. Further, the chapter claims that design is a core competency that can pay dividends in terms of profit margins for firms. It is important for firms to develop expertise in understanding and leveraging relationships between the types of design attributes, specific emotions, and consumers’ willingness to pay. 
 
 
Methodology/approach 
The chapter uses the product categories of cell phones and laptop computers in the three experiments to test the hypothesized relationships between design attributes (functionality, aesthetics, and environmental sustainability), specific emotions, and willingness to pay. 
 
 
Findings 
The research finds that different attributes of design – functionality, aesthetics, and sustainability – evoke different types of emotions and different levels of willingness to pay. 
 
 
Research limitations/implications 
The data were primarily collected via experiments in a behavioral laboratory. 
 
 
Practical implications 
Firms can leverage different attributes of design to position and price products according to emotional requirements of the target customer segment to match their willingness to pay and maximize profit margin per unit. 
 
 
Originality/value 
The research specifically measures willingness to pay in joint presentation – independent evaluation scenarios to assess differences in how functionality, aesthetics, and sustainability impact willingness to pay.