A Mathematical Model of Successful-Product Development by Considering the Indonesian Culture

Product development activities must be well managed; this will increase company productivity by optimizing the success factor strategy, which will inevitably lead to success. Furthermore, Some evidence suggests that product development that considers culture could lead to greater success in Indonesia, even on a global scale. This paper aims to build a mathematical model of successful product development by considering Hofstede culture and deciding the culture’s contribution to product success and at the same time to do Indonesian culture mapping. The first step of this research was started by deciding the relationship of culture to product success and by clustering the culture based on 805 Indonesian respondents. The next step was deciding success factor variable and building the mathematical model of product development by using 304 data of automotive products, netbooks, smartphones, souvenirs, and services. Furthermore, the research used methods to manage culture such as Hofstede dimension counting, Principal Component Analysis and Agglomerative Hierarchical Cluster. In the step on building mathematical model of successful product, experiment designed and Kano were used. The result of the Indonesian cultural cluster dimension showed that Indonesian culture could be divided into four clusters, including cluster 1 (C1), Cluster 2 (C2), cluster 3 (C3), and cluster 4 (C4), which are presented in Table 2. The Indonesian culture is divided into two dimensions such as intrinsic characteristics and environmental and future characteristics. While the result of the Kano mathematical model showed that price, product performance, services and marketing were put into a one-dimensional category. The model which considered culture was able to increase determination value (R2) and it was included in a one-dimensional category, so explicitly it was the most desired by the customers and was able to increase customer’s satisfaction indeed. That model was expected to be a quidance on product development in increasing its product market share.

Hofstede dimension; KANO methods; Market share; Success product

1.1. Background

    The product development needs to be managed well to minimize the failure. Product development that is not managed properly will affect productivity and lead to failure. An increase of company’s productivity will be gained once product development is well managed (Li et al. 2006; Cooper et.al, 2008 and Cooper, 2000). The company needs to manage product development activity to elevate it's productivity and reach success. (Holt & Cameron, 2014). The various products which have successfully applied cultural innovation strategy developed by product design (Ben & Jerry’s, Starbucks, Vitamin water), printed advertisement (Jack Daniel’s), company’s business policy (Ben & Jerry’s, Freelancers Union), retail design (Starbucks), packing (Starbucks, Vitamin water), television advertisement (Nike, Marlboro, and Levi’s). Apple and Nokia are also examples of developing a cultural-based product in the global market. Apple designed more efficient laptops with silent laptop fans (Isaacson, 2013). It is developed by adopting “zen", a culture in Japan, and it can lead 35% of the global market. On the other product, the Apple tablet also has increased its sales by 61.4% (Tribune, 2014). On the other case, Nokia also uses the culture aspect to design dual sim mobile in India. Besides smartphone products, automotive products with cultural backgrounds have also been developed and loved by Indonesians. For example, the MPV (Multiple Purpose Vehicle) product has seven seats and was to reach 79% sale.  While there is Viar a product with occupational background, a motorcycle design with three wheels and an open container on the back.  It gained a 30% increase in sales (Sukarno, 2013). Almost the same case leads the “bentor” product (combination between a pedicab and motorcycle design) as the cultural symbol of Gorontalo which gains its success too. Those examples prove that cultural-based automotive products are well developed and desired by Indonesians.

Based on the above explanation, the research takes some problems as mentioned below:

a)     How does the mathematical model on product development work while considering culture, and

b)     How does culture contribute to product success, and how Indonesian culture mapping by using Hofstede's cultural dimension could be done.

1.2. Benefits

Based on accessible research, the explicit model to formulate the relationship between success factors to product success which considers culture has not been found yet. By that condition, this research is expected to give benefits to researchers and expertise as mentioned below:

a)       To produce mathematical model on product development that considers culture, and

b)     Determine the culture contribution to product success, and the Indonesian culture mapping by using Hofstede cultural dimension could be done.

1.3. Research originality

The previous research that has the scope, methods and fields of study similar to this research among other build a mathematical model in digital innovation, whom his research clustering in economic security and build growth kinetics models. This paper builds a mathematical model  of a successful product using clustering Indonesian culture.

        There are some indications of culture involvement in product development based on the literature review, but there is no detailed review on how culture contributes to successful product development. Several factors affecting product success have been explained in the literature review but it remains no standardization of those factors in predicting the success of various products. For all these reasons, this research is conducted with its originality such as the culture contribution of product development, cluster, and Indonesian culture mapping by using Hofstede dimension, standardization of factors that effect product success, and the modeling of the relationship between those factors and market share (success). 

Kano mathematical model shows that price, product performance, services and marketing are included to one-dimensional category. Brand is on must-be and attractive category. Culture is on one-dimensional category so that it is explicitly wanted by customers and will able to increase customer satisfaction. The mathematical model of product success which considers culture is able to increase determination value (R²). The mapping of Indonesian culture based on Hofstede culture dimension produces 4 clusters which have 2 main characteristics, internal characteristics and environmental and future characteristics. It is necessarily to do the next research by using mathematical model of product success development with more culture dimension variations. 

The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article. This article is 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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