|Ratih Setyaningrum||Faculty of Engineering, Dian Nuswantoro University, Jl. Nakula I Semarang 50131, Indonesia|
|Subagyo||Faculty of Engineering, Gadjah Mada University, Jl. Grafika 2 Yogjakarta 55281, Indonesia|
|Andi Rahardiyan Wijaya||Faculty of Engineering, Gadjah Mada University, Jl. Grafika 2 Yogjakarta 55281, Indonesia|
Previous studies have not agreed on factors that affect the success of different kinds of products. These studies have used independent variables with a different number of success factors to examine several products, and some of these variables have been redundant. No standardized factor predicts the success of various products; thus, no generalizable result has provided a reference for further studies or use recommendations for practices. Therefore, this study produced a model that not only examined specific products and scope but also used a number of standardized success factors by building a mathematical model of the success factors that affect the success of various products. The study utilized 304 products from the Indonesian market as well as design of experiment to build the mathematical model. The results suggested that six standardized success factors affected the success of various products: (1) price, (2) product performance, (3) brands, (4) aesthetic design, (5) services and (6) marketing. Services and marketing (i.e., appropriately timed marketing) were positively correlated and proportional to the increase of market share. Therefore, focusing on the services and marketing factors that will drive the success of a product is important for many companies. The factors that positively drive success can be determined by characteristic sales in the Indonesian market.
Design of experiment; Indonesian market; Mathematical models; Success factors
Predicting the potential factors that drive product success is important for companies. Besides being very costly, product development activities are also critical to the company to know which potential factors will drive success. Its means that product development activities must be based on the potential factors that will drive success. In addition, companies must minimize potential investment failures in product development. Therefore, this study investigated potential factors that drive success in the Indonesian market.
Previous research has identified success factors in the market. For example, Montoya-Weiss and Calantone (1994), Cooper (1979a), Cooper et al. (2014) and Henard and Szymanski (2001) examined key factors that affect product success. These factors include product quality (Cantner et al., 2012), branding and marketing (Gao et al., 2006), product services (Jiang and Liu, 2012), price promotion (Lee and Zhou, 2012), product performance and marketing (Ernst, 2002).
Several literature reviews and a meta-analysis also investigated the factors of product success (Griffin and Page, 1993; Ernst, 2002; Kleinknecht and Panne, 2012; Setyaningrum et al., 2016) then the product success factor become research trend. Previous research identified success factors in business incubators (Gozali et al, 2020) and multi factors productivity that a priori insights in capital project (Woodhead and Berawi, 2020).
According to previous research, models that examined the factors of product success had some weaknesses. They used independent variables with a different number of success factors for several products, and some variables were redundant. This was because no standardized factor effecting a product’s success exists (Cooper, 1979b; Henard and Szymanski, 2001; Wijaya, 2011; Handaru, 2012; Mutjaba, 2013; Cooper et al., 2014; Nugroho, 2014; Armunifah, 2014; Susilowati, 2016; Lenggono, 2016).
The studies by Wijaya (2011), Handaru (2012), Mutjaba (2013),vNugroho (2014), Armunifah (2014), Susilowati (2016) and Lenggono (2016) used various factors for different kinds of products. The most common factors used to predict product success are shown in Figure 1. The number of factors used to predict product success varied for different products. Electronic products used 12 success factors,14 smartphone products used 5–14 success factors (Wijaya, 2011; Armunifah, 2014), automotive products used 12–14 success factors (Wijaya, 2011; Lenggono, 2016), wood products used 11 success factors (Mutjaba, 2013; Nugroho, 2014; Susilowati, 2016), and service products used 7–12 success factors (Nugroho, 2014) and product success analysis (Suharyanti et al., 2017). No agreement was found on the factors determining success for various products. Additionally, some factors were redundant and could be grouped together.
Figure 1 The utilization percentage of success factors based on 12 studies
1.1. Aims and Benefits of the Research
To fill the gap in previous research, this study aimed to determine the success factors of various products. Additionally, it aimed to develop a mathematical model of the relationship between market share and success factors for various products. The research established the standardized factors that affect product success. The results of the study can be used to determine product development strategies by optimizing potential success factors; investigating these factors is important for companies.
This study has important implications for the research community on product development and success. The results showed that six standardized factors affect the success of various products: (1) price, (2) product performance, (3) brands, (4) aesthetic design, (5) services and (6) marketing (launching time). This study also produced some other interesting conclusions related to automotive products in the Indonesian market. For example, the relationship between market share and success factors in high-automotive, medium-automotive, and low-automotive models showed that increasing services will increase market share. The results concerning some success factors (i.e., product performance, brand, aesthetic design and marketing) varied, as these variables showed a variety of automotive compositions. The variables of price and marketing influenced the market share significantly in the high-automotive and low-automotive models. The aesthetic design significantly influenced the market share in the medium-automotive model. In the non-automotive (low-automotive) model, price, product performance, aesthetic design and services were positively correlated and proportional to market share. In the era of internet and big data storage, this study’s model can be used to predict the factors that drive success. The mathematical models in this study can be conducted by building a database of the model. Then, the results can predict the level of success of a particular product. Therefore, further research is needed to profile the characteristics of all factors completely.
The authors disclosed receipt of the following financial support for the research, authorship and/or publication of this article. This article was financially supported by the Ministry of Research, Technology and Higher Education of the Republic of Indonesia (project number 025/E3/2017).
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