By combining data on aesthetic design and sales, the researchers showed that while customers do not like cars to look too different from the market average, they also do not want something that looks too similar.
When buying a luxury car, it is more important that the car looks consistent with the brand, and less important that it looks like other cars in the market segment. Cars in the economy segment can gain in popularity by mimicking the aesthetics of their luxury counterparts.
"Using our quantitative design model, product design managers in all sectors can forecast sales and profits of alternative aesthetic designs," Balachander said.
Although quantifying the physical appearance of real products is challenging, the researchers used a recently developed morphing technique to construct the 'average' car in a particular market segment or brand from a series of individual pictures.
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Once developed, the researchers determined the similarity of more than 200 car models from 33 brands sold in the US between 2003 and 2010 to that average, examining their segment prototypicality (how typical a product is compared to other products in the same market), brand consistency (how much a product looks like the average product in a brand's product lineup) and cross-segment mimicry (how much the design of an economy product mimics a luxury product), while controlling for other variables such as price and advertising.
In the luxury category, customers prefer cars that adhere more closely to the brand, and less to the market average. Products in the economy segment of a market can gain by mimicking the aesthetics of luxury products.
Balachander said the results highlight the fine line between creating products that appeal to consumers because they stand out, but are not perceived as ugly.
"In contrast to previous research, which has shown that consumers prefer a more prototypical car, our study highlights the advantage of introducing some level of freshness into a new model, particularly if those unique design elements mimic those of a luxury car," Balachander said.