This study expands the definition of the poor group and attempts to delve into and make known the phenomenon of poverty in Taiwan and aims to explore the goals and possibilities of the BOP consumer market. Through a questionnaire survey and expert interviews, this research adopts the concept of sustainability to discuss the lifestyle and consumption characteristics of the BOP group and establishes a design strategic norm of the sustainable products. The findings show that the BOP group in Taiwan is new poverty or working poor and high quality and common prices are the main requirements; these should be introduced into the development model of sustainable design.
The booming of capitalism and industry has enabled many countries to develop and prosper since the beginning of the 20th century. However, due to the implementation of the free economic market system, the gap between rich and poor in those countries continues to increase, resulting in the disappearance of a good part of the middle class and the polarization of classes. In particular, the emerging capitalists among the lower and middle classes account for more than half of the whole nation [
A sketch of the new poor group at the bottom of the pyramid.
The definition of poverty varies in different countries. Beyond absolute poverty, this study expands the definition of the poor group and attempts to delve into, and make known, the phenomenon of poverty in Taiwan. Taiwan defines poverty according to the influence of an M-shaped society and the boundary between “absolute poorness” and “relative poorness” defined by OECD [
In the approach of combining business development and poverty alleviation, the poor at the BOP are considered as both producers and consumers of products. The design of products is an important ingredient of this market-based approach [
The BOP-related literature is based on mutual value creation; important business between development and poverty reduction has not fully tested relevant propositions but only the relations between the two. There is a study on 64 companies to identify the restrictions which BOP manufacturers face. The aim was to alleviate the constraints of local producers, while also creating value for the enterprise itself [
Sustainable development has become an increasingly important topic of business research and practice, along with the rapid depletion of natural resources, the concern over the disparity of wealth, corporate social responsibility, and the results of the past few decades [
Undoubtedly, the design phase has been widely recognized as a critical stage of a product’s life cycle in the implementation of sustainability. Since the late 1990s, various sustainable design methods and techniques have been developed for sustainable product development requirements [
One of today’s most frequently discussed topics in the business world is how to escape from the fierce Red Sea in order to create an undisputed blue ocean [ Through collecting the related data from relevant studies, a questionnaire survey is conducted with the BOP group to find their acceptance and awareness of green consumption, the consumption characteristics, and requirements of using products. Through expert interviews, an analysis is conducted to deduce the developing model of sustainable design along with the business opportunities related to the BOP group and to establish the developing norm. By summarizing the consumption model and requirements of the BOP group and the sustainable design norm, the developing strategies of the sustainable design are formed along with the business opportunities related to the BOP group.
Since the BOP population has grown rapidly and their daily needs have increased in recent years, this research aims to explore the lifestyle and consumption characteristics of the BOP population in Taiwan. This study uses the literature analysis, a questionnaire, factor analysis, and expert interviews as research methods to construct sustainable product design strategy norms to apply to this population. At the same time, this study attempts to establish a theoretical framework to shed light on contention and ambiguities, contribute to deepening and propelling studies of Taiwan’s new BOP problems, and provide directions for policy-makers.
To test the integrity of the research, a follow-up study will examine the research framework of this study through a literature analysis, as shown in Figure
Research framework.
This study seeks to explore the bottom of the pyramid in Taiwan, in other words, the poor socioeconomic groups of Taiwan. In light of this, as the government has failed to provide a definition of this new poor group [
The second stage is based on visits to product sustainability experts, mainly from the designer’s point of view to carry out in depth interviews, in order to understand the methods related to the design process for the BOP population. We expect that the result can be combined with the consumers’ view and be able to establish an appropriate market design criteria.
This study uses questionnaires and the interview method as the main basis of the investigation; afterwards, the data and results of this study are used to construct a product to be applied to the BOP population in Taiwan.
Questionnaire surveys are adopted for research at this stage in order to explore the extent to which sustainable product designs are accepted by the people at the bottom of the pyramid in Taiwan, as well as the relevant experiences, patterns of consumption, and needs of such people. The questionnaire survey at this stage encompasses three parts, with detailed explanations provided, as follows.
The first part consists of research participants’ personal data, which has the main function of facilitating good control of demographic variables and other variables; while the purposes are to organize the data of research participants, understand the composition of the demographic structure, and conduct in-depth discussions and analysis of problems.
The second part is to investigate the green consumerism perceptions and experiences of people at the bottom of the pyramid, where question items are designed with reference to relevant studies of green consumerism [
The third part addresses the patterns of consumption and product/service demands of people at the bottom of the pyramid in Taiwan. Question items of this part are designed with reference to relevant studies [
The stage uses the interview method to survey experts (Table
An expert background table.
Expert | Job title | Professional field | Education | Experience |
---|---|---|---|---|
A | Designer | (i) ID design |
Department of Industrial Design, DaYeh University | ROHA product designer |
|
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B | Professor | (i) Innovative product design (TRIZ method) |
Ph.D. in engineering mechanics, University of Florida, USA | (i) Professor, Department of Mechanical Engineering |
|
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C | Professor | (i) Resource management |
Ph.D. in industrial engineering, University of Oklahoma, USA | (i) Professor, Department of Resources Engineering |
|
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D | Designer | (i) ID design |
Department of Industrial Design, DaYeh University | Deputy Manager, Section of Technology Innovation and Development |
This stage is the result of a comprehensive analysis of the consumer side and the designer side, developing strategies, and patterns of sustainable design in the perspective of BOP group in Taiwan.
A total of 205 questionnaires were sent out, among which 190 were valid, after excluding the respondents with the annual income above NTD 540,000. In the procedure of data analysis, the willingness and experience of green consumption were mainly investigated among the group members to further understand their consumption features and the factors related to product needs. The questions were based on the essentials concluded from the related literature, mainly covering green consumption, consuming behavior and features, and the needs concerning products and services. The findings of this study should serve as the reference for future researches. The distribution of the demographics of the BOP group is shown in Table
Distribution of the demographics of BOP group.
Item | Number of people | Number of people (%) | Cumulative Percentage |
---|---|---|---|
Gender | |||
Male | 98 | 51.32% | 51.32% |
Female | 92 | 48.68% | 100.00% |
Total |
|
|
|
Age | |||
Less than 18 years old | 0 | 0.00% | 0.00% |
18–24 years old | 39 | 20.53% | 20.53% |
25–30 years old | 134 | 70.52% | 91.05% |
31–40 years old | 17 | 8.95% | 100.00% |
41–50 years old | 0 | 0.00% | 100% |
More than 50 years old | 0 | 0.00% | 100% |
Total |
|
|
|
Educational level | |||
Elementary school (and below) | 0 | 0.00% | 0.00% |
Junior high school | 0 | 0.00% | 0.00% |
Senior high school and vocational school | 4 | 2.11% | 2.11% |
University (including college) | 102 | 53.68% | 55.79% |
Graduate school (and above) | 84 | 44.21% | 100% |
Total |
|
|
|
Annual income | |||
Less than 0.3 million NTD | 99 | 52.11% | 52.11% |
0.31~0.54 million NTD | 91 | 47.89% | 100% |
Total |
|
|
|
Residential places | |||
Northern Taiwan | 136 | 71.58% | 71.58% |
Central Taiwan | 37 | 19.47% | 91.05% |
Southern Taiwan | 17 | 8.95% | 100% |
Eastern Taiwan | 0 | 0.00% | 100% |
Off-shore islands | 0 | 0.00% | 100% |
Total |
|
|
|
Occupation | |||
Professional personnel | 56 | 29.47% | 29.47% |
Service industry | 40 | 21.06% | 50.53% |
Business | 26 | 13.68% | 64.21% |
Self Employed | 21 | 11.05% | 75.26% |
Public official | 11 | 5.79% | 81.05% |
Labor industry | 19 | 10.00% | 91.05% |
Agricultural, forestry, fishery, and husbandry | 0 | 0.00% | 91.05% |
Retired | 0 | 0.00% | 91.05% |
Others | 17 | 8.95% | 100.00% |
Total |
|
|
|
The main part of this questionnaire is meant to understand the underlying population pyramid concept for cognition of green issues. In Table
Crosstab of BOP’s awareness of green issues.
Item | Yes | No | ||
---|---|---|---|---|
Frequency | Percentage | Frequency | Percentage | |
I know that the earth’s natural resources will be exhausted one day. | 189 | 99.47% | 1 | 0.53% |
I think I am aware of environmental issues. | 169 | 88.95% | 21 | 11.05% |
I know that the use of green design products can contribute to the environment. | 184 | 96.84% | 6 | 3.16% |
I know and understand what “green product” is. | 139 | 73.16% | 51 | 26.84% |
I know what Green Mark is. | 155 | 81.58% | 35 | 18.42% |
If there are affordable green products, I will gladly accept and purchase them. | 186 | 97.89% | 4 | 2.11% |
The questionnaire in this section is primarily to understand the BOP group in regard to green consumption experience and willingness. In Table
Crosstab of BOP’s consumption experience on green products.
Item | Yes | No | ||
---|---|---|---|---|
Frequency | Percentage | Frequency | Percentage | |
Have you ever bought any green appliances? | 91 | 47.89% | 99 | 52.11% |
Have you ever bought any green clothes? | 61 | 32.11% | 129 | 67.89% |
Have you ever bought any green transportation? | 47 | 24.74% | 143 | 75.26% |
Have you ever bought any green living supplies? | 134 | 70.53% | 56 | 29.47% |
Have you ever bought any green furniture? | 35 | 18.42% | 155 | 81.58% |
The other part of the questionnaire explores the willingness of consumers to engage in green consumption. In Table
Crosstab of BOP’s green consumption willingness.
Item | Yes | No | ||
---|---|---|---|---|
Frequency | Percentage | Frequency | Percentage | |
I would choose to buy green products, even if the price is more expensive. | 74 | 38.95% | 116 | 61.05% |
Since the rise of the green consumer awareness, I will consider green-related products when selecting and purchasing. | 146 | 76.84% | 44 | 23.16% |
I will give up buying brand products or green products because of the price. | 155 | 81.58% | 35 | 18.42% |
I will buy the products which emphasize environmental protection | 116 | 61.05% | 74 | 38.95% |
When buying green products, I will focus on brand. | 121 | 63.68% | 69 | 36.32% |
When buying green products, I will attach importance to price. | 175 | 92.11% | 15 | 7.89% |
When buying green products, I will attach importance to quality. | 185 | 97.37% | 5 | 2.63% |
When buying green products, I will attach importance to functionality. | 184 | 96.84% | 6 | 3.16% |
When buying green products, I will make reference to recommendations of friends and relatives. | 155 | 81.58% | 35 | 18.42% |
I will buy green products because of environmental labels. | 129 | 67.89% | 61 | 32.11% |
When purchasing goods, I will consider whether the product has environmentally friendly features. | 150 | 78.95% | 40 | 21.05% |
This research aims to understand the consumption characteristics of the BOP group; the topic is based on the five principles proposed by Prahalad [
Crosstab of consumption characteristics in the BOP group.
Item | Strongly agree | Agree | Neutral | Disagree | Strongly disagree | Total |
---|---|---|---|---|---|---|
Work to live, in order to maintain basic living expenses. | 63 |
83 |
26 |
16 |
2 |
190 |
I have to buy daily necessities (e.g., clothing, personal hygiene items) | 92 |
89 |
7 |
2 |
0 |
190 |
When shopping, the demand of necessities is greater than the demand of vanity products. | 70 |
74 |
34 |
11 |
1 |
190 |
When I buy something, I will be cautious. | 44 |
86 |
42 |
17 |
1 |
190 |
Price is the most important consideration when I go shopping. | 41 |
92 |
41 |
15 |
1 |
190 |
I would choose a different place to buy goods because of the relative price (e.g., supermarkets, markets, etc.). | 56 |
94 |
34 |
4 |
2 |
190 |
I am sensitive to the price, so I buy the best quality at affordable prices. | 70 |
96 |
20 |
4 |
0 |
190 |
I have financial understanding. | 13 |
47 |
103 |
25 |
2 |
190 |
I would use the coupons and wait for discounts to buy the goods. | 19 |
97 |
54 |
17 |
3 |
190 |
I have brand awareness. | 29 |
96 |
58 |
7 |
0 |
190 |
Brand for me is a guarantee of quality. | 25 |
93 |
52 |
18 |
2 |
190 |
I think that brand can enhance the social status and highlight the taste. | 23 |
65 |
70 |
23 |
9 |
190 |
I will focus on the atmosphere in the living environment. | 46 |
106 |
34 |
3 |
1 |
190 |
I am willing to use my income to buy luxury goods (e.g., 3C products, brands, watches). | 17 |
79 |
59 |
24 |
11 |
190 |
I pursue fashion. | 16 |
86 |
58 |
20 |
10 |
190 |
I have a desire to buy popular seasonal goods. | 9 |
6835.79% | 68 |
30 |
15 |
190 |
Friends will affect my purchase options. | 32 |
107 |
44 |
7 |
0 |
190 |
Evaluation of the network affects my buying choices. | 39 |
113 |
35 |
3 |
0 |
190 |
I will use the Internet to obtain information. | 68 |
110 |
10 |
2 |
0 |
190 |
I often offer new consumer messages to friends and family. | 20 |
82 |
63 |
21 |
4 |
190 |
I am pleased to accept the new technology, because I know it will bring change for a better life. | 47 |
115 |
21 |
7 |
0 |
190 |
I think technology will bring convenience to my life. | 61 |
111 |
15 |
3 |
0 |
190 |
I usually do not buy a new product until mine is completely broken | 20 |
85 |
61 |
24 |
0 |
190 |
For the selection of products, I like to buy durable style. | 32 |
111 |
36 |
11 |
0 |
190 |
If I have extra money, I like to deposit it in the bank. | 53 |
90 |
36 |
10 |
1 |
190 |
The questionnaire results are shown in Table
Crosstab of BOP’s demand for products and services.
Item | Strongly agree | Agree | Neutral | Disagree | Strongly disagree | Total |
---|---|---|---|---|---|---|
I like the practicality of the product. | 64 |
121 |
4 |
1 |
0 |
190 |
I value the product’s functionality. | 63 |
121 |
5 |
1 |
0 |
190 |
In the use and operation of the product, I would hope that “the more simple the better.” | 65 |
112 |
13 |
0 |
0 |
190 |
I requested product material. | 44 |
116 |
29 |
1 |
0 |
190 |
I pay attention to the appearance of the product, and think appearance is very important. | 59 |
106 |
25 |
0 |
0 |
190 |
I hope t the product can match my personal taste. | 48 |
110 |
27 |
4 |
1 |
190 |
I attach great importance to product safety. | 69 |
98 |
22 |
1 |
0 |
190 |
I attach great importance to product durability. | 54 |
106 |
25 |
5 |
0 |
190 |
I attach great importance to product survivability. | 54 |
103 |
31 |
2 |
0 |
190 |
I fear there are too many functions in the product. | 16 |
46 |
72 |
40 |
16 |
190 |
I hope that I am familiar with the product’s operation. | 44 |
109 |
33 |
4 |
0 |
190 |
I think the product after-sales service is very important. | 93 |
81 |
14 |
1 |
1 |
190 |
Under the same conditions, I would choose the products which provide more after-sales service. | 75 |
88 |
23 |
4 |
0 |
190 |
I like to use vendor-supplied network services system. | 34 |
84 |
59 |
10 |
3 |
190 |
Compared to the network service system, I prefer to use the telephone voice service system provided by the vendor. | 16 |
51 |
86 |
31 |
6 |
190 |
Compared to digital service systems (Internet and voice), I prefer to use a fixed-point type business service system. | 28 |
85 |
58 |
16 |
3 |
190 |
In terms of appearance, 86.84% of the subjects expressed consent in reply to: “I pay attention to the appearance of the product, and think appearance is very important”; most of the subjects focus on the appearance of the product. In terms of product usability, in the “I attach great importance to product safety” and “I attach great importance to product durability (e.g., useful life)” 87.9%, 84.21%, respectively, of the subjects expressed consent; safety and durability are important factors determining purchase intention.
In terms of services, 91.58% of the subjects in the category: “I think the product after-sales service is very important” and 85.79% of the subjects in the category: “Under the same conditions, I would choose the products which provide more after-sales service” expressed consent. That is, the service is important for the subjects, so the product design must consider service to meet the consumers’ demand.
In order to summarize the consumption features and needs of the respondents, the questionnaire contains 41 questions for the factor analysis; similar features are summarized together.
In order to know the reliability of the questionnaire, Reliability Analysis is conducted. The higher the Cronbach
Factor Analysis abstracts the same factors from the variables. After reducing the amount of the variables in order to achieve the effect of simplification, several factor dimensions are summarized, with the premise that most of the variables are kept. The second step of Factor Analysis is KMO Measure of Sampling Adequacy and Bartlett Sphericity Test. As the Kaiser-Meyer-Olkin (KMO) measure is to compare the simple and partial correlation coefficients between two original variables, the KMO test statistic indicator, as defined by (
After KMO Measure of Sampling Adequacy and Bartlett Sphericity Test mentioned above, the questionnaire is considered suitable for Factor Analysis. Thus the same factors are abstracted by the Principal Components Analysis of the Factor Analysis. From Table
Eigen value of factors, explained variance after rotation, and cumulative explained variance of green consumption scale.
Primary eigenvalue | |||
---|---|---|---|
Component | Eigenvalues | Explained variance | Cumulative explained variance |
1 | 7.523 | 18.384 | 18.348 |
2 | 5.088 | 12.410 | 30.757 |
3 | 2.321 | 5.662 | 36.419 |
4 | 2.083 | 5.081 | 41.500 |
5 | 1.868 | 4.555 | 46.055 |
6 | 1.557 | 3.797 | 49.852 |
7 | 1.426 | 3.477 | 53.329 |
8 | 1.329 | 3.241 | 56.571 |
9 | 1.280 | 3.122 | 59.693 |
10 | 1.184 | 2.887 | 62.580 |
The next step is to conduct orthogonal rotation by Varimax:
Component matrix of green consumption scale of principal component analysis after rotation.
Subject of green consumption | Factors | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Factor 1 | Factor 2 | Factor 3 | Factor 4 | Factor 5 | Factor 6 | Factor 7 | Factor 8 | Factor 9 | Factor 10 | |
31 |
|
0.114 | 0.057 | −0.025 | 0.149 | −0.143 | 0.052 | 0.035 | 0.131 | −0.092 |
12 |
|
−0.046 | −0.070 | 0.193 | 0.164 | 0.174 | 0.110 | −0.060 | −0.091 | 0.068 |
30 |
|
0.124 | 0.150 | −0.105 | −0.043 | −0.096 | 0.001 | 0.073 | 0.195 | −0.096 |
13 |
|
0.149 | 0.017 | 0.180 | −0.118 | 0.094 | 0.034 | 0.151 | −0.105 | 0.040 |
15 |
|
−0.129 | −0.093 | 0.056 | 0.285 | 0.180 | −0.085 | −0.188 | 0.042 | 0.084 |
10 |
|
0.070 | 0.019 | 0.304 | 0.066 | 0.305 | 0.071 | −0.042 | −0.269 | 0.076 |
14 |
|
−0.145 | −0.065 | 0.229 | 0.264 | 0.105 | −0.203 | −0.241 | 0.003 | 0.018 |
11 |
|
0.031 | 0.055 | 0.360 | 0.140 | 0.247 | 0.097 | −0.059 | −0.207 | 0.227 |
16 |
|
−0.083 | −0.113 | −0.093 | 0.451 | 0.063 | −0.020 | −0.210 | 0.060 | 0.303 |
37 | −0.041 |
|
0.144 | 0.133 | 0.017 | 0.184 | 0.013 | −0.086 | 0.090 | 0.054 |
34 | 0.022 |
|
0.135 | 0.107 | 0.116 | −0.099 | 0.228 | 0.138 | 0.044 | 0.162 |
32 | 0.164 |
|
0.048 | 0.225 | −0.013 | −0.015 | 0.317 | 0.092 | 0.093 | 0.025 |
33 | −0.030 |
|
0.142 | 0.058 | 0.068 | 0.033 | 0.281 | 0.159 | 0.051 | 0.182 |
38 | 0.047 |
|
0.075 | −0.032 | 0.143 | 0.159 | 0.014 | −0.026 | 0.135 | −0.140 |
36 | 0.041 |
|
0.433 | −0.168 | −0.039 | 0.137 | −0.130 | −0.002 | 0.049 | 0.169 |
29 | 0.398 |
|
0.349 | −0.005 | −0.008 | 0.119 | 0.069 | 0.085 | −0.115 | −0.121 |
27 | 0.012 | 0.211 |
|
0.168 | 0.081 | 0.007 | 0.246 | 0.158 | 0.098 | 0.049 |
26 | −0.038 | 0.075 |
|
0.117 | −0.034 | 0.004 | 0.294 | 0.182 | 0.114 | −0.033 |
28 | 0.087 | 0.428 |
|
−0.062 | −0.012 | −0.029 | −0.109 | 0.033 | 0.038 | 0.095 |
21 | 0.288 | 0.163 | 0.018 |
|
0.103 | 0.141 | −0.059 | 0.079 | 0.131 | −0.013 |
22 | 0.224 | 0.200 | 0.072 |
|
0.119 | −0.025 | −0.020 | 0.052 | 0.248 | 0.001 |
18 | 0.229 | 0.084 | 0.095 | 0.231 |
|
−0.047 | −0.054 | 0.141 | 0.011 | −0.042 |
17 | 0.251 | 0.016 | −0.069 | −0.051 |
|
0.047 | 0.309 | 0.021 | 0.085 | 0.068 |
19 | 0.055 | 0.283 | 0.089 | 0.395 |
|
−0.092 | −0.171 | 0.112 | 0.013 | 0.021 |
9 | 0.158 | 0.133 | 0.076 | −0.041 | −0.030 |
|
0.077 | 0.065 | 0.054 | −0.062 |
8 | 0.056 | −0.002 | −0.024 | 0.085 | −0.110 |
|
0.092 | 0.199 | −0.060 | 0.095 |
20 | 0.443 | 0.038 | −0.075 | 0.145 | 0.267 |
|
0.011 | −0.005 | 0.082 | −0.018 |
6 | 0.209 | 0.227 | 0.021 | −0.030 | 0.157 |
|
0.174 | 0.306 | 0.365 | −0.169 |
24 | 0.171 | 0.213 | 0.189 | 0.057 | 0.023 | 0.034 |
|
−0.014 | −0.049 | −0.024 |
23 | −0.074 | 0.234 | 0.121 | −0.083 | 0.009 | 0.196 |
|
0.185 | 0.051 | 0.099 |
25 | −0.241 | 0.087 | 0.346 | −0.080 | 0.189 | 0.209 |
|
−0.175 | 0.214 | 0.139 |
4 | 0.035 | −0.012 | 0.053 | 0.091 | 0.049 | 0.093 | 0.164 |
|
0.023 | 0.048 |
3 | −0.233 | 0.125 | 0.226 | −0.040 | 0.056 | 0.150 | −0.062 |
|
0.017 | 0.006 |
7 | 0.092 | 0.314 | 0.140 | −0.015 | 0.170 | 0.359 | 0.047 |
|
0.205 | 0.053 |
1 | −0.033 | 0.016 | 0.055 | 0.098 | −0.016 | 0.024 | 0.139 | −0.094 |
|
0.114 |
2 | 0.010 | 0.163 | 0.128 | 0.175 | 0.108 | 0.010 | −0.150 | 0.104 |
|
−0.028 |
5 | 0.006 | 0.148 | 0.050 | −0.067 | 0.004 | 0.043 | 0.481 | 0.315 |
|
−0.013 |
41 | 0.024 | 0.136 | 0.098 | 0.053 | −0.072 | −0.055 | 0.092 | −0.019 | 0.030 |
|
40 | 0.061 | 0.092 | 0.021 | −0.135 | 0.174 | 0.058 | −0.002 | 0.066 | 0.026 |
|
35 | −0.001 | 0.112 | −0.075 | −0.627 | −0.111 | 0.049 | −0.086 | 0.102 | 0.033 |
|
The study names the factors according to the meanings of questions, respectively, including Brand and Personal Taste, Practical Value, Function Simplification, Technology Acceptance, Channel Dimension, Price Perception, Best Use, Product Dimension, Basic Needs, and Service-using Habits, as shown in Table
Meanings of names of factors.
Factor | Names | Meanings | Factor loading |
---|---|---|---|
Factor 1 | Brand and |
(i) I hope the product can set off my personal taste. | 0.780 |
(ii) The brand will allow me to enhance my social status and highlight my taste. | 0.733 | ||
(iii) I pay attention to the appearance of the product, and think the appearance is very important. | 0.725 | ||
(iv) I will focus on taste and the atmosphere of the living environment. | 0.683 | ||
(v) I care about fashion or popular supplies. | 0.674 | ||
(vi) I have brand awareness. | 0.586 | ||
(vii) I am willing to use my income to buy luxury goods. | 0.569 | ||
(viii) I have the desire to buy popular seasonal merchandise. | 0.541 | ||
(ix) I think that brand is a guarantee of quality. | 0.527 | ||
|
|||
Factor 2 | Use value | (i) I think that product after-sales service is very important. | 0.787 |
(ii) I attach great importance to product survivability. | 0.769 | ||
(iii) I attach great importance to the durability of the product. | 0.681 | ||
(iv) I attach great importance to the safe use of the product. | 0.680 | ||
(v) Under the same conditions, I would choose the products to provide additional services. | 0.599 | ||
(vi) I hope that I am familiar with the operating functions of the product. | 0.536 | ||
(vii) I attach great importance to the product material. | 0.411 | ||
|
|||
Factor 3 | Function simplification | (i) I attach importance to the functionality of the product. | 0.807 |
(ii) I like practical goods. | 0.801 | ||
(iii) In the use and operation of the product, I prefer “the simpler the better”. | 0.652 | ||
|
|||
Factor 4 | Science and technology | (i) I am willing to accept the new technology because I know it will bring life changes. | 0.759 |
(ii) I think that the technology will bring convenience to my life. | 0.738 | ||
|
|||
Factor 5 | Channel and network | (i) The network evaluations will affect my purchase choice. | 0.757 |
(ii) My relatives and friends will affect my purchase choice. | 0.735 | ||
(iii) I will use the Internet to obtain information. | 0.600 | ||
|
|||
Factor 6 | Price perception | (i) I would use the coupons and wait until the discount period to purchase goods. | 0.743 |
(ii) I’m good at managing finances. | 0.714 | ||
(iii) I often provide new the consumer trend messages to friends and family. | 0.457 | ||
(iv) I will select different consumer locations, such as hypermarkets, supermarkets, markets, night market, and so forth. | 0.376 | ||
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Factor 7 | Best use | (i) In product choice, I like to buy the style to replace what is outmoded and dirty. | 0.739 |
(ii) I usually wait until the product is completely broken and then buy a new one. | 0.560 | ||
(iii) If there is money left over, I want to put it in the bank. | 0.377 | ||
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Factor 8 | Cautious purchase | (i) Buying things means careful consideration, no whim purchases. | 0.805 |
(ii) I prefer necessities to the vanity goods. | 0.674 | ||
(iii) With considerable acumen I expect to buy the best quality products at affordable prices. | 0.426 | ||
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Factor 9 | Basic needs | (i) Working is to live and maintain basic overhead. | 0.794 |
(ii) I buy daily necessities such as clothing or personal hygiene items. | 0.647 | ||
(iii) The price is the most important consideration in my shopping. | 0.510 | ||
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Factor 10 | Habits on service usage | (i) Compared to the network service system, I prefer to use the telephone service provided by the manufacturers. | 0.781 |
(ii) Compared to a digitization service systems (like Internet and voice), I prefer to use a fixed-point-merchant services system. | 0.737 | ||
(iii) I fear products with too many functions. | 0.492 |
This study through interviews with four experts will analyze the interview data. In this study, the main research content of the specifications will be used to construct sustainable product design and development according to the BOP perspective on the elaboration of the interview questionnaire design strategies. Furthermore, the scope of classification and induction-related issues and analysis of the internal factors oriented in the three abovementioned areas will proceed.
The interview mainly focuses on the topics related to the BOP group and sustainable design of products; the views and suggestions of four experts from different fields are also analyzed. According to them, it is possible to introduce the views of the BOP group into the studies and theories related to sustainable design and development. Moreover, from the perspective of industrial designers, we can understand the professional procedures related to the sustainable design, based upon which, the research conclusion can be analyzed and summarized.
Based on the results of the interviews, the study obtained and named 176 concepts through open coding. Axial coding is conducted after open coding, whereby the topics are summarized according to the concepts. After the topics were completed, associate categories were further summarized. The study results total 18 associate categories which can be summarized into 4 principle categories: society orientation, consumer orientation, design orientation, and enterprise orientation. The details are as follows: Society orientation: market, social economy, government, and awareness; Consumer orientation: consumers, needs, views, and marketing; Design orientation: development, sustainable design, recycling, and cost; Management orientation: management, enterprise, brand, operation, innovation, and renting.
The details of its scope are shown in Table
Interview’s data coding.
Main dimension | Second dimension | Topic | Concept |
---|---|---|---|
Society orientation | Social economy | Social status | C1, D2, D31: Taiwan applicable theory of relative poverty |
C4: Revenue for the social bottom 20% | |||
B7: Needs of the top social group | |||
C2: Lower income groups also have demands | |||
C6, D4: Taiwan is a small and closed society | |||
C10, D1: Low-pay as a social phenomenon | |||
Economic environment | B2: Poor economic environment | ||
B3: Less resource allocation | |||
Region | B13, C11: Meet the regional demand | ||
C8, D30: Definition of poverty varies by region | |||
Social relief | C16: From the point of view of social assistance | ||
Market | Market demand | A1: Market analysis groups demand | |
A17: They have to meet demand | |||
D19: Influence the design and development | |||
Market trends | B9: Cheap consumer market trends | ||
C3: Sustainable development requires high-quality | |||
C19: View of high-quality and affordability | |||
Awareness | Environmental awareness | B31: There is a growing public awareness of environmental protection | |
Government | Government policy | A33: Government can have an impact | |
C41: Promote policies | |||
D17: Government regulations specification | |||
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Consumer orientation | Consumers | Consumption patterns | A3: Shopping patterns of self-adjustment |
A4: Shopping to have products based | |||
A5, A13: Reduce the purchase vanity items | |||
A65: Consumer habits | |||
C5, D3: Consumer habits and the top-level population | |||
C33: Affordable | |||
Needs | Use requirements | A18, C20, D22: There are certain quality requirements | |
A19, C18: Products will have the best performance | |||
A43: Improve product texture | |||
A56: Mainly to meet the basic needs | |||
D23: Features simple operation | |||
Psychological needs | A27: Pursuit of cheap vanity products | ||
A34: Product allows users to have a sense of presence | |||
A42: Improve product aesthetics | |||
Views | Values | C9: Consumption Values | |
C14: Consumer habits vary due to values | |||
D5: Stimulated by a large number of networks | |||
D14: Changes in the concept of green consumption | |||
Marketing | Product value | A58, C21, C26: Product highlights certain characteristics | |
A59, C31: Products need to have highlights | |||
C34: Products need extra value | |||
Marketing practices | A6: Brand Sale | ||
A25: Use discount schedule to stimulate consumption | |||
A52: Use Anniversary Sale | |||
D10, D26: Reduce excessive marketing | |||
Path | C22, D27: Easy to buy | ||
C23: Establish contact with the customer and pipeline path | |||
D6: Powerful network connection force | |||
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Design orientation | Development | Design flow | A14, D11: Process design to reduce costs |
A66: Streamline the design process | |||
A35: Reduce manufacturing steps | |||
A50: Reduce the failure rate of products manufactured | |||
C28: Simplify the process | |||
C30: The lowest level of consumer acceptance testing | |||
B30: A small amount of production is good for the environment | |||
Machining processes | A20: The use of alternative materials | ||
A21: The use of alternative processing mode | |||
Overall factor | A46: Product type body shrinking | ||
A48: Product is small and beautiful | |||
A49: Product complexity appearance will lead to increased costs | |||
A57: Overall use of the product may increase the value | |||
A53, D9: Product is simple, beautiful and small | |||
Built factor | A45: Reduce excessive internal structure of the product | ||
C15: Reduced product content and maintenance product quality | |||
C32: Function-oriented | |||
D7: Reduce unnecessary functions | |||
D8: Optional use of optional features | |||
Assembly mode | A40: Changes in product assembly methods | ||
D16: Replacement of the product in part failure | |||
D20: Parts to maintain the same life | |||
Technical use | B14: The idea of using technology from the demand side | ||
D24: Sophisticated technology easy to fault | |||
D29: Promotion and use of technology | |||
Durability | A8: Green products are not durable | ||
B12: Have both practical and durable | |||
C35: Use of technology to increase product durability | |||
C36: Lease to maintain product durability | |||
Volume | A15: Product volume is reduced | ||
Packaging | A67: Neutral packing material | ||
Cost | Material costs | A7: Environmentally friendly products higher price | |
A10: Material cost is difficult to adjust | |||
A16, C29: Saving materials | |||
A47: The main factor in the cost of materials | |||
B16: Reducing the use of synthetic materials | |||
B28: The higher cost of green materials | |||
Tooling costs | A11: Mold cost savings | ||
Processing costs | A12: Reduce post-processing | ||
A36: Reduce the processing flow | |||
A39: Reduction in composite processing | |||
Marketing costs | C17: Reduce marketing costs | ||
Sustainable design | Sustainable product design | A9: The concept of sustainable design strategies | |
B4, B15: Product design and sustainable design concepts fit the BOP | |||
B6: Green design meets the needs of ethnic point of view | |||
B20: To improve the environment as a starting point | |||
D15: Green products and fashion products conflicting | |||
Green certification | A2: Use of poison testing and certification | ||
B17: Reduce the use of poison | |||
Green detection | A55: Use regulations to detect product problems | ||
Energy saving | B21: Overall energy savings | ||
B22: To judge the end result of energy-saving | |||
Recycling | Recovery mode | A37: Easy to recycle | |
A38: Easy to disassemble | |||
A60: The basic product recovery | |||
A61: Difficulties caused by the recovery of excess processing | |||
B18: To complete recovery planning | |||
B27: The need to construct loop recycling | |||
Recycling detection | B26: Designers and recyclers should take each other into account | ||
B23: View the proportion of recycled goods | |||
Resources | B24: Recyclers must be willing to recycle | ||
B25: Must have effective recycling | |||
D21, D28: Re-use recycled products | |||
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Management orientation | Management | Business operations | A24: Enterprises are required to meet the needs of all communities |
A41: Cost reduction is the highest corporate standard | |||
C13: Understand proper demand | |||
A51: Estimated sales and net income | |||
B8: Ten-dollar merchandise store concept | |||
Operating experience | B1: Companies did not pay attention to their needs | ||
B35: Enterprises must provide products to meet the need | |||
Enterprise | Corporate responsibility | A22: Corporate Responsibility | |
B10: Corporate charitable viewpoint | |||
B11: Provide basic needs | |||
B19: Reduce the demand created | |||
Industry opportunities | B32, C39: Sustainable product design is the new direction of the industry | ||
B33: A new opportunity for the industry in the economic downturn | |||
C12: Youth Poverty is a new opportunity for the development of Taiwan | |||
C38: Green design is a new source of competitiveness | |||
Brand | Brand value | A23: Brand can add value to products | |
A26: The use of low-cost strategy to make the brand lay down roots | |||
Brand information | C7: Rapid flow of fashion news and brands | ||
Brand construct | C24: Construct its own brand | ||
C25: Construction of sub-brand | |||
C27: Main brands to endorse sub-brand | |||
Innovation | Innovative ideas | B34: Manufacturing technology combined with innovative ideas | |
Institutional innovation | C40: Change the system | ||
C43: Promote an innovation system | |||
Operation | Industry needs | A54: Convince the boss to reduce costs | |
Renting | Lease charges | A28: Leasing is a way to provide low-cost consumption | |
A29: Leasing can reduce the economic burden | |||
A30, C37: The high cost of leasing | |||
A31: Leasing must become popular | |||
A32: Leasing must cut prices | |||
Leasing quality | A63: Leasing can maintain product quality | ||
Product category | A64: Product range will affect leasing results |
Through interviews, we can learn about the current social situation of this group, their consumption habits and many other aspects. Taking the BOP group as the subject, this study finds from the interviews that the definitions of the group may vary due to different regions. In the case of Taiwan, there is no extremely poor group compared with western countries or the Third World countries, although the gap between rich and poor does exist. Accordingly, the definition of BOP group is the relatively poor group. The summary and analysis of the interviews are presented in Table
For the BOP group, reasonable price is the most important view and the main aim. It also involves design orientation and management orientation. The norm and methods related to the sustainable design and development of the products are discussed from the perspectives of development and the companies. The related data from interviews are summarized and analyzed, as shown in Table
The questionnaire analysis is expounded in the descriptive statistics and factor analysis, all of which test consumers’ consumption style and product usage in the market. In addition, 10 elements are abstracted from the factor analysis and combined with the survey to conduct an overall analysis on the consumption and usage needs of the BOP group, which are interpreted as follows:
Combining the Green Design Structural Flow sheet [
The sustainable design process from the BOP standpoint.
In the third stage of integrating design, the overall cost plan is added. Since the BOP group often takes price into consideration during purchasing, the cost plan is important. There are four main aspects to achieving the cost plan: material cost, mold cost, processing cost, and marketing cost, all of which aim to effectively reduce the related production and marketing cost and the selling price.
The second step is to work out the development norm of sustainable design in the perspective of the BOP group. After introducing the BOP’s views to sustainable design procedure, the development norm combines the sustainable development model with the view that the lifespan of a product should be taken into consideration in the sustainable design procedure.
In the new development norm of sustainable design, the study adds two new concepts: the market survey and the sales model. The data analysis found that the difference between the development of sustainable design in the perspective of BOP group and the previous concept of sustainable design is that the former has to consider the market orientation and design according to the actual needs of consumers. Moreover, due to the large BOP population, it is necessary to clearly define the differences among the various BOP groups.
The market characteristics of BOP groups are different from those of the common consumers. According to the analysis on product consumption and usage needs of BOP group, it is found that networks should be used frequently, the cost should be reduced and direct contact should be initiated, in order to penetrate the group. Therefore, the study introduces the lifespan of the products into the sales model.
The design and development of specifications in various stages of their life in the new “LC-BOP”, marking a new concept, was added to the bottom of the pyramid view, as shown in Table
Sustainable product design specification from the BOP’s standpoint.
Life recycle | Sustainable product design specification from the BOP standpoint |
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Marketing survey |
(1) Do exact positioning and distinction concerning consumer groups. |
(2) Investigate the consumer product demands and consumption habits. | |
(3) The in-depth investigation of consumers, regions and local resources. | |
(4) Designers need to have the concept of BOP and green design to satisfy the needs of the BOP. | |
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|
Material selection | (1) Select appropriate materials for product use. |
(2) Select the maximum utilization rate of the material. (LC-BOP) | |
(3) Select high durability material. (LC-BOP) | |
(4) Choose environmentally friendly alternative material under the cost considerations. (LC-BOP) | |
(5) Avoid the use of toxic and harmful ingredients of the raw materials. | |
(6) Avoid excessive use of synthetic materials. (LC-BOP) | |
(7) Try to use biodegradable materials. | |
(8) Simplify the use of material, and avoid mixing different materials. | |
(9) Try to use recyclable and recycled material. | |
(10) Minimize the amount of material. | |
(11) Proper use of raw materials. | |
(12) Attention to the characteristics of the material and conditions of use. | |
(13) Use the compatibility characteristics of the material. | |
(14) Reduce the material for chemical treatment (painting, plating). | |
(15) More use of latch design to reduce the use of screws. | |
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Mechanism design | (1) Avoid designing disposable products. |
(2) Try to reduce the size. | |
(3) Modeling is not the pursuit of short-term popularity. | |
(4) Material structure simplified. | |
(5) Use mining dismemberment design and easy to disassemble combination instead of one-piece design. | |
(6) Use easy ways to replace parts of the structure. | |
(7) Improve the attitude of the people in using the product. | |
(8) No acute angle design to ensure the safety of users. | |
(9) The life of components has to be unified. (LC-BOP) | |
(10) Reduce the extra unnecessary functions. (LC-BOP) | |
(11) Avoid the use of complicated and too many components. (LC-BOP) | |
(12) Take the idea of function-oriented to achieve the simplification of the product features. (LC-BOP) | |
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Manufacturing process | (1) Select provincial materials processing. |
(2) Reduce waste generation process. | |
(3) Try to use natural energy in the manufacturing process | |
(4) Reduce process waste water, waste, toxic emissions and noise. | |
(5) Develop manufacturing technology for more provincial energy resources. | |
(6) Use the excess energy in the process. | |
(7) Reduce unnecessary and non-essential processes to achieve the goal of reducing process waste. (LC-BOP) | |
(8) Reduce the failure rate of the product manufacturing process. (LC-BOP) | |
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|
Package design | (1) Use the design for easy packaging. |
(2) Simplify the package structure to enhance strength | |
(3) Avoid excessive packaging. | |
(4) Reduce the use of foam plastic. | |
(5) Try to use natural resources or paper. | |
(6) Use non-toxic, easy to decompose, recyclable and renewable packaging materials. | |
(7) The material selections have to be simplified as much as possible. | |
(8) Reduce the amount of ink used. | |
(9) Products and packaging combined into one design. | |
(10) Consider the issue of consumer safety. | |
(11) Use neutral packaging to increase the multi-utilization of the packaging. (LC-BOP) | |
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Transport distribution | (1) Use the most economical mode of transport. |
(2) Reduce the pollution caused during transportation. | |
(3) Recycle the pallets during transport. | |
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Sales model (LC-BOP) | (1) Highlight the characteristics and value of one item to enhance consumers’ willingness to purchase. |
(2) Use the Internet as a pathway. | |
(3) Create a pipeline to directly contact consumers. | |
(4) Construct a sales database. | |
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|
Consumer using | (1) Increase consumer use efficiency and satisfaction. |
(2) Simplify the function and operation. | |
(3) Reduce the chance of error in the operation, and establish the correct operation. | |
(4) Ensure the safety of users. | |
(5) Select the best way with the lowest pollution. | |
(6) Increase energy efficiency. | |
(7) Reduce the use phase pollution emissions generated. | |
(8) Increase the life of the product and the subsequent use value. (LC-BOP) | |
(9) Test consumers’ bottom line. (LC-BOP) | |
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|
Recycling | (1) Guide the user to improve the recycling. |
(2) Establish and improve the recycling system. | |
(3) Try to promote resource recycling. | |
(4) Select the most appropriate recycling way among the waste disposal methods. | |
(5) Increase the ease of disassembly and easy recovery. (LC-BOP) | |
(6) Re-use and regenerate recycled goods back to the design of the product. (LC-BOP) | |
(7) Construct secondary products to reduce product costs and extend the life of the product. (LC-BOP) | |
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|
Environment design | (1) The interior design needs to consider the material combination with the neat concept. |
(2) Provide a beautiful and suitable urban living space planning and design. | |
(3) Consider comprehensive urban landscape design and community planning. | |
(4) Effectively improve the environment as a starting point. (LC-BOP) | |
(5) Do the product design to match the exact needs of the BOP. (LC-BOP) | |
(6) From the view of social care, do comprehensive design planning. (LC-BOP) | |
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|
Environmental law | (1) Follow environmental regulations and standards. |
(2) Seek Green Mark certification. | |
(3) Combine the government relief bill with policy. (LC-BOP) |
After discussing the ideas of sustainable design development in the perspective of the BOP group, the study proposes the development strategies of sustainable design in Taiwan. The topics concerning the BOP group mainly start from the consumer orientation. The consumer dimension contains the aspects of society and consumers: development strategies should combine development ideas with consumers’ views. The development strategies are shown in Figure
Development strategies of sustainable design in the perspective of BOP group in Taiwan.
The development strategies of sustainable design in the perspective of BOP in Taiwan are derived from four aspects: company orientation, design orientation, society orientation, and consumer orientation. In the strategy figure, the four aspects are classified into company and design and society and consumers, according to the characteristics, shown in detail as follows.
Every enterprise has its own style and responsibility that influence the operation and the brand identity. The brand identity influences the model of developing products. Moreover, consumers’ views and market positioning should be taken into consideration during product development, and the factor of environment assessment will make the product plan complete.
During the product planning, environmental requirements and localization (region) should be considered. In other words, the region of the consumers should be completely explored during the product planning, to develop the products closer to the needs of BOP group.
Society is greatly correlated to consumers. Social economy, regional culture and social resource allocation all affect government policies, while government policies in turn affect market orientation and guide consumption habits. The study found that a sales database should be formed when the consumers make purchases, in order to provide a reference for future analysis based on the classification of consumers’ habits, and to help enterprises conduct market surveys and environment assessments.
After the products are packed and sent to the channels and stores, consumers make their purchases, and enjoy the subsequent maintenance and repair service to extend the life span of the product. After the lifespan ends, the product is recycled into resources (recycling processing), or for second manufacturing (repairing or renewing the recycled products for sales) is conducted.
In the results and discussion, this study proposes the development model of sustainable design, including a factor analysis on the product consumption and usage needs of the BOP group in Taiwan, development norm and strategies of sustainable design in the perspective of the BOP group in Taiwan. With regard to the Bop group in Taiwan, this study investigated the young working poor in Taiwan. Relevant studies of the young working poor group and the new poor group largely focus on causes [
In Taiwan, the BOP group mainly refers to new poverty or working poor group. Due to the compact society of Taiwan, people are aware of the green concept. Thus if an overall survey on the product usage of the group can be conducted and their needs transformed into design factors of the green products, not only will the consumption willingness of the group be increased, but also the range of sustainable design will be extended.
According to the demand factor of the group, it is found that they have certain requirements concerning the products. Moreover, according to designers and scholars, if cost is considered as a design factor, simplification of product appearance and function is the main requirement, which coincides with the ideas of sustainable design.
The group features a large population. According to interviews, it can be seen that the BOP group members are similar to common people in terms of consumption ability and habits. Different lifestyles may change the other consumption factors, so that an overall market evaluation mechanism should be used to identify the actual needs of the group.
The biggest problem of the BOP group is the unequal distribution of social resources. The companies may find the range to be quite large, when investigating the needs of the group. Thus they should take regional characteristics into account when developing products based on the needs of the BOP group.
The so-called regional characteristics contain social trends, local resources, indigenous groups, and consumption habits. Those factors serve as important variables in designing for the BOP group, so they should be considered entirely. Different groups have different regional characteristics. Since the BOP group in Taiwan is new poverty or working poor, high quality and common prices are the main requirements; these should be introduced into the development model of sustainable design. The product development should be considered based on reducing costs. And, the results of this study have identical views with the results of relevant studies [
The BOP group mainly features the requirements of common price and small amount, which coincide with the small-amount production of sustainable design. A simplified manufacturing procedure can reduce the cost. Besides the cost reduction, attracting consumers is the most important aspect; it requires transferring the production cost to other parts, such as product functions, brand, channel convenience, and specialty, to improve the purchase intention and usage willingness of the consumers.
High quality and common price are the main concepts and ideas for BOP group in Taiwan. They can be achieved in all the brands and promoted by developing the subbrands. Besides distinguishing the brands, high quality and common price can also reduce the excessive costs and simplify the products to achieve the concept of sustainable design for the group. And, the results of this study have identical views with the results of relevant studies [
When developing design strategies, companies must observe consumer needs. Such a model can be divided into two dimensions: the development dimension and consumer dimension; they affect the development models of companies and consumers, respectively.
The needs and consumption styles of consumers may affect the decision-making and evaluation of enterprises during product development. Thus, enterprises should deeply understand the market to continue the product development. After a series of developments, enterprises should get in touch with consumers again through channels. Besides introducing the products to consumers, companies should observe the purchase behaviors of consumers to understand the sales situation of the products in the market. Channels help with the database establishment and play an important role in the recycling to maintain and extend the lifespan of products.
The authors declare that there is no conflict of interests regarding the publication of this paper.