Service design : the cure for consumers' time scarcity

Abstract

This paper investigates whether using design methodology in service innovation can increase adoption likelihood of the service, by helping consumers acquire additional time. The paper identifies three design characteristics of services that create time saving benefits for consumers. This enables consumers to spend time on activities that maximize their subjective well-being, thus increasing their “Return on Time (RoT)”. The main findings conclude that using service design does create time saving benefits, which optimize RoT, and increase likelihood of adoption. By segmenting consumers based on lifestyle in three groups: ‘Young, Free and Simple’, ‘Chaos In My Life’, and ‘Got My Life Back’, the paper looks at differences in perceptions of RoT and Premium Price between segments. However, no significant differences were found. The paper concludes that managers can capitalize on knowledge of RoT and gain higher profitability and competitiveness through the use of design competence.