-4 An Investigation of Preferences for Product Appearance: a Case Study of Residential Solar Panels AR4?Vms by MASSACHUSETTS INSTITUTE OF TECHNOLOCY Qifang Bao AUG 15 2014 B.S., Tsinghua University (2012) LIBRARIES Submitted to the Department of Mechanical Engineering in partial fulfillment of the requirements for the degree of Master of Science in Mechanical Engineering at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY June 2014 @ Massachusetts Institute of Technology 2014. All rights reserved. Signature redacted Author ................................. Department of Mechanical Engineering May 18, 2014 CePrtified b Signature redacted, y. ................ Maria C. Yang Associate Professor of Mechanical Engineering & Engineering Systems Thpsis Supervisor Signature redacted' Accepted by ............... .......... David E. Hardt Professor of Mechanical Engineering Chairman, Department Committee on Graduate Students 2 An Investigation of Preferences for Product Appearance: a Case Study of Residential Solar Panels by Qifang Bao Submitted to the Department of Mechanical Engineering on May- 18, 2014, in partial fulfillment of the requirements for the degree of Master of Science in Mechanical Engineering Abstract The importance of the styling and appearance of consumer products is widely understood. This paper evaluates the appearance of a technology-oriented product, the residential solar panel, using a quantitative approach known as visual conjoint analysis. The goal of this research was to determine the design attributes that make a solar panel more visually appealing, and to understand how different visual representations may reveal consumer preference differently. Approximately 200 survey respondents were shown two kinds of images of solar panels, one of a standalone panel and the other of a panel installed on a roof. The preferences for product appearance of solar panels were determined on two levels: one from an individual perspective and another from an aggregated point of view. By analyzing the preference on an individual level, the study further explores how presenting a solar panel in its context of use can influence the consistency of consumer preferences. The results show a significant shift of preferences when first showing the non-contextualized image and then showing the contextualized image. Such preference inconsistency provides insights with which to inform the process of user-needs revealing. By analyzing the preference on an aggregated level, attributes such as color, shape and pattern are determined to be more important than the frame style on influencing peoples preference for solar panel appearance. Thesis Supervisor: Maria C. Yang Title: Associate Professor of Mechanical Engineering & Engineering Systems 3 4 Acknowledgments I wish to thank, first and foremost, my advisor Professor Maria Yang for her guidance and support. Maria, thank you for the hours and hours of time you've spent with me in discussing and brainstorming. Thank you for helping me editing the papers and taking the trouble to correct every single mistake in the writing. And thank you so much for being supportive of my attempts to explore all research areas that I'm interested in. You are an awesome advisor! My special appreciation goes to fellow Ideationers: Jim, Bo, Jesse, Anders, Geoff, Maxime, Jasmine, Mike, Francisco, Lisa, Justin, Heidi and Catherine. Thank you for your friendship, encouragement and help. The numerous fruitful discussions with you are really enjoyable and it's you that make my graduate life such a great experience. I would like to thank Cummins-Tsinghua Women Fellowship to support my first year and provide me with internship opportunities to gain some valuable industry experience. And thank KFUPM for supporting the second year of my graduate study. To my loving Mom and Dad, thank you for being such supportive parents. To my friends, it is great to have you all. Special thanks goes to my dearest roommates Di, Lei and Yi - it's you that make me convinced, with your own passion for science and engineering, that it's not a bad idea to keep going with research life. I'll never forget all the midnight conversations about lithium-ion battery, nonlinear control, or photon and phonon. 5 6 Contents 1 Introduction 13 2 Literature Review 17 2.1 Product Appearance ........................... 17 2.2 Conjoint Analysis ............................. 18 2.3 User Preference Inconsistency . . . . . . . . . . . . . . . . . . . . . . 20 2.4 Research Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3 Data Collection 23 3.1 Attribute Identification . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.2 Image Creation . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 24 3.3 Survey Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.4 Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 4 Individual Preference Model 31 4.1 Research Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4.2 Data Analysis Methods . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4.3 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 4.3.1 Bradley-Terri-Luce (BTL) Model . . . . . . . . . . . . . . . . 33 4.3.2 Preference Inconsistency Across Different Visual Representations 35 4.3.3 Directly Stated Preference Under Contextualized Condition . 38 4.3.4 Changing of 'Most Preferred' Attribute . . . . . . . . . . . . . 39 4.4 Discussion and Conclusions . . . . . . . . . . . . . . . . . . . . . . . 7 40 43 5 Aggregated Preference Model 5.1 Research Questions ............................ 43 5.2 Conditional Logit Model . ...................... 43 5.3 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5.3.1 Full Factory Model . . . . . . . . . . . . . . . . . . . . . . . . 44 5.3.2 Reduced Model . . . . . . . . . . . . . . . . . . . . . . . . . . 46 5.3.3 Aesthetic Levels . . . . . . . . . . . . . . . . . . . . . . . . . . 47 . . . . . . . . . . . . . . . . . . . . . . . 47 5.4 Discussion and Conclusions 51 6 Summary 6.1 Discussion and Conclusion . . . . . . . . . .. . . . . . . . . . . . . . 51 6.2 Limitation of Current Work . .. . . . . . . . . . . . . . . . . . . . . 52 6.3 Future Work. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 53 8 List of Figures 3-1 Examples of the created images. . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3-3 Example survey question, Part II . . . . . . . . . . . . . . . . . . . . 27 3-4 Example survey question, Part IV . . . . . . . . . . . . . . . . . . . . 28 3-5 Example survey question, Part V . . . . . . . . . . . . . . . . . . . . 29 4-1 Data Analysis 33 4-2 Preference model from one participant . . . . . . . . . . . . . . . . . 34 4-3 Summary of individual preference model . . . . . . . . . . . . . . . . 35 4-4 Summary of most preferred level of attributes 38 3-2 Survey structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . 10 List of Tables 3.1 Levels of attributes influencing the appearance of solar panels . . . . 24 4.1 Prediction accuracy for two types of images . . . . . . . . . . . . . . 36 4.2 Prediction accuracy comparison . . . . . . . . . . . . . . . . . . . . . 36 4.3 Preference matching rate . . . . . . . . . . . . . . . . . . . . . . . . . 37 4.4 Color of the roof and first two preferred color in five design questions 39 4.5 Changing of 'Most Preferred' attributes from conjoint analysis revealed to directly stated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 5.1 Coefficients of the full model . . . . . . . . . . . . . . . . . . . . . . . 45 5.2 Levels of attributes of the reduced model . . . . . . . . . . . . . . . . 46 5.3 Coefficients of the reduced model . . . . . . . . . . . . . . . . . . . . 46 5.4 Examples of solar panels with different aesthetic level . .... . . . . . 49 11 12 Chapter 1 Introduction Understanding user needs is critical to the formulation of comprehensive design requirements and the future success of a product. User needs can touch on many aspects of a product, including price, functional performance, sustainability, brand, as well as product appearance. The aesthetic value of a product can be defined as the pleasure derived from seeing the product, without consideration of utility [1]. For some technology-push products that are developed around technological innovation rather than user-needs or market-needs [2], appearance is usually considered after performance or price. However, as a product rises on the S-curve of technology diffusion, that is, the technology becomes more mature and more familiar to the consumer, product appearance may play a larger role in influencing customers buying decisions. To obtain meaningful and accurate information from users, conjoint analysis has been widely used as a cost-efficient tool to capture preferences for products. Traditional conjoint has proved to be successful in capturing descriptive features [3]. Visual conjoint analysis allows users to express preferences for visual features of a product such as form, size and color [4]. Studies have demonstrated the ability to accurately capture consumer preferences of this method by simplifying symbolic graphs to represent the appearance and identity of a product, such as using Bezier curves to represent the outline of an automobile [4]. Many strategies exist for obtaining and estimating consumer preferences, from qualitative ethnographic approaches to quantitative computational strategies. How13 ever, inconsistency is an innate feature of individual preference due to the case-by-case preference construction process [5], thus it is often difficult to make the 'best' decision on product design [6]. This is also true for preferences for product appearance. In some sense, preferences for product appearance can be more easily biased, since it deals with a primarily visceral response [7]. Understanding these inconsistencies will provide product designers and engineers insights on the decision making process of customers [5], thus helping them better understand consumer preferences for product appearance. In this.thesis, the preferences for appearance of residential solar panels were examined. Much research has been conducted on technologies to improve engineering performance, particularly efficiency and manufacturability of the panels, but less attention has been paid to panel styling. Typically, elements such as panel color, size, and frame style are by-products of engineering performance considerations. Darker solar panels are generally more efficient, while manufacturing methods and ease of installation issues govern the size and shape of a panel, as well as their rigidity, weight and texture. However, a solar panel's appearance can dramatically change the visual appeal of a home and thus influence whether a homeowner chooses to invest in a system and further adoption of the technology. There are two main research questions explored in this study: 1. What design attributes make a solar panel more visually appealing than the others? Products can be characterized by various attributes such as performance (efficiency etc.) and physical properties (dimensions, weight etc.). Here we'd like to study which attributes and what values of them lend themselves to visual appeal. 2. Do different visual representations reveal consumer preferences for product appearance differently? Product may be visually presented to a consumer in a myriad of ways, and the particular format may influence the consumers' opinion. Here we explore how the introduction of product context might play a role in user perception. 14 Chapter 2 starts the thesis with a literature review of product appearance, conjoint analysis method and preference inconsistency. In Chapter 3, the design of an online survey was introduced in detail and a summary of the survey participation was presented. In Chapter 4, the survey results were analyzed on an individual level. The Bradley-Terri-Luce (BTL) equation was used to create individual preference models, and the preference inconsistency between product images with/without context was analyzed. Further in Chapter 5, a conditional logit model was built to estimate the user preference for the solar panel appearances on an aggregated level. The results showed that some of the attributes were of higher impact on users preferences than the others. Finally, Chapter 6 serves as a summary of the study and discussed future works. 15 16 Chapter 2 Literature Review 2.1 Product Appearance Human interfaces and industrial design are often regarded as key marketing elements of a product [8]. The appearance of a product is partly determined by the functions it performs, and is partly designed to convey performance and emotional information to users [9]. It serves its own 'Aesthetic Function' [10] and also plays an important role in defining the product-person relationship [11]. Industrial design plays an important role in technological innovation. This was supported by direct evidence in Moody's study, where designers from nine sciencebased companies were interviewed [12]. In the marketing of function driven products, technology sophistication is the key of product competence. Thus the designers may want to draw on the product form to emphasize the underlying technology. Also, physical constrains exist which the product form must connect to and designers should explore in the realistically feasible subset of product form [13]. A core practice of the field of industrial design is product styling, developing forms for a product that are both appropriate for the design and attractive. At the intersection of industrial design and engineering, some research has been conducted on product appearance for cases such as vehicles and mobile phones [14, 15]. Other research has been conducted on how style and fidelity of preliminary design representations can influence users response to product concepts [16], and has found that users 17 believe realistic, finished drawings to be more appealing. User interaction designers have also considered the topic for software design, and found that designs that are perceived as more attractive are considered better, whether or not they actually are more effective [17]. The appearance of residential solar panels, which are traditionally considered engineering performance driven products rather than styling driven, has not received as much research attention. In a survey of 193 solar panel installers in California, Chen, et al. found that installers were generally the stakeholders who make the primary decision on what solar panels will be made available to the homeowners [18, 19]. When asked to list the top five attributes considered when recommending a panel to a homeowner, the survey found that the aesthetic of the panels was the second highest priority attribute voted after cost. In the same study, installers were presented images on a blank (no context) background of four different kinds of panels, varying the color of frame and the surface texture. Results of the survey suggested that, an even surface with dark-colored frame is the most preferable solar panel style. 2.2 Conjoint Analysis In previous works of user preference for solar panels, methods of eliciting revealed preference (preference extracted from real marketing data) and stated preference (preference explicated by consumers over hypothetical alternatives) were conducted independently and the results are compared to each other [18, 19]. Ranking and rating were used as the main methods of stated preference elicitation. In this study, choice based conjoint analysis is used as the main preference elicitation method. It belongs to the category of stated preference eliciting methods, however different from directed stating preference eliciting methods in many ways. When using conjoint analysis, several attributes of a product are chosen, each of which can be varied in discrete levels. A controlled set of potential products is created by experimental design, each of which contains a combination of the attributes [20]. Full-factorial design is a choice for product profile generation when the number of 18 product feature is limited. However, when the number of product features is large, fractional-factorial experimental designs can be used to capture consumer preferences, substantially reducing the number of questions [21]. After the set is prepared, users are asked to rate, rank or choose among the product profiles. By their rating, ranking or choices, utility models can be built and predictions can be made about the users' future preferences. Choice based conjoint presents several products with different combinations of attributes to users and asks them to choose the one he/she likes the most [22]. Compared to the ranking or rating conjoint method, choice based conjoint has the advantage of more realistically mimicking customers purchasing behavior. Conjoint analysis is used to address the additive effect of a set of individual vaiables on consumer preference. Despite its disadvantage that it only considers limited number of product attributes and cannot reveal any latent user need, it is still widely used in market research to determine how people value different features that make up an individual product or service [23]. Conjoint analysis has been traditionally used on descriptive features of products. Visual conjoint expands the use of the method by allowing judgment on a products appearance. In Kelly, et al.'s work, two attributes were varied to generate different shape of a cola bottle [24]. In Swamy, et al.'s work, four-control-point Bezier curves were defined to generate the shape of a vehicle headlight [25]. In Orsborn, et al.'s study, seven attributes were determined to fully describe the outline of an SUV [26]. These 2D visual representations are further combined with functional attributes of products to understand consumer preference from other perspectives such as perceived environmental friendliness or the emotion and reasoning behind the choices [27, 28]. Experimental conjoint methodology was proposed by Tovares, et al. [3]. Virtual reality was combined with conjoint analysis to create a vivid use environment. This method allowed users to judge not only how a product looked, but also how it would feel to use as a product. 19 2.3 User Preference Inconsistency Preference inconsistency is an unavoidable issue when collecting preference data from users. Inconsistency can be a result of using different preference elicitation methods, testing preference within various contexts, or interpret preference using different models. There have been many studies conducted in understanding the preference inconsistency. MacDonald, et al. compared the preference elicitation results of three widely used engineering/market design methods and distinguished the internal and external inconsistencies [5]. Horsky, et al. demonstrated that the weights of attributes are not always correlated between stated preference and revealed preference. They also found that the relative importance of intangible attributes (prestige) are sometimes overstated and that of tangible attributes (price) are frequently understated [29]. Reid, et al. studied the preference inconsistency across forms of vehicals. The results showed that the opinions for products are inconsistent between computer sketch / FSV (3D file system visualizer) silhouette and realistic rendering, though the inferences are consistent [30]. To analyze the underlying reason and to reveal latent variables that have not been addressed in explicit preference models are the main goals of these studies. For product designers and engineers, better understanding the user preference inconsistency will help them gain insights on the decision making process of customers, thus further make better design decision. Different solutions have been proposed to deal with this preference inconsistency. To make up for the deficiency of traditional random utility model, which ignores latent psychological factors such as perception and attitude, or latent segmentation of population, Ben-Akiva et al. dedicated themselves to develop advance models such as hybrid choice model to include comprehensive decision related factors [31]. In Kulok and Lewiss study, a systematic method, preference consistency check, was proposed to help decision makers expressing consistent preference. [6].To deal with inconsistency caused by different visual representations, Reid et al. proposed to use pilot studies pretesting a variety of visual representation forms and use one or more 20 forms to improve the robustness of the preference test [30]. 2.4 Research Gap Visual conjoint analysis is a relatively new approach for studying product appearance. Only a limited variety of products have been studied using this method. In addition, it has previously focused on line-drawing visual representations. This work seeks to build on this approach in a number of ways. First, this work extends the variety of products that have been studied by exploring a technology product. Second, here we consider photorealistic contextualized and non-contextualized images other than line drawings. 21 22 Chapter 3 Data Collection This study involves presenting users with an online survey of images of solar panels with varying appearance attributes. The details of the creation of the survey and images, survey administration, and participants demography follow below. 3.1 Attribute Identification Datasheets of 265 different models of residential solar panels from 37 different brands were collected as part of a previous study [191. These panel types were successfully sold on the open California market from 2007-2011, and were drawn from the California Solar Initiative's database [32]. In this current study, analysis of the product images included in the datasheets identified four key attributes of panels' appearance: 1. Color: The color of solar cells 2. Shape: The shape of the corners of solar cells 3. Pattern: The pattern of the front contact wires of solar cells 4. Frame: The style of the frame of solar panel modules In the experiment, each attribute was varied on 3 4 different levels, which can be found in Table 3.1. 23 Table 3.1: Levels of attributes influencing the appearance of solar panels Attributes Num. of Levels Level 1 Level 2 Level 3 Level 4 Green Color 4 Black Blue Red Shape 3 Big rounded corner cell Small rounded corner cell Square cell Pattern 3 Two main contact No patternwiecottwrs Frame 3 Silver frame Three main wires contact wires Black frame No frame In fact, the attributes identified are not only related to the appearance of solar panels, but are also connected with engineering criteria such as performance and price. For example, the color of the panel is directly determined by the solar cell coating material. The shape of a solar cell is related to the usage rate of silicon wafer, the fabrication materials, and the power generation efficiency per area of the solar panel. For the sake of simplicity, here we do not consider the variation of any criteria except those relating to aesthetics, holding all other attributes constant. 3.2 Image Creation Two different kinds of images of solar panels were created specifically for this survey: * Non-contextualized: Images of solar panels from a front view on a blank background. * Contextualized: Images of solar panels installed on houses of different styles and with differnt roof colors. The panels may be shown at an angle, depending on the roof style. Images were created using Adobe Photoshop, and all levels of the attributes were controlled to minimize possible bias introduced by factors such as image resolution. 24 For the contextualized images, the combination of panels and roofs were chosen randomly, without specific match of styles between the two. Figure 3-1 shows examples of the two kinds of images. Panels in the two images have the same combination of attributes: blue, big rounded corner cell, two main contact wires and no frame. Non-contextualized Contextualized Figure 3-1: Examples of the created images. 3.3 Survey Design A six-part survey was designed. Figure 3-2 is a summary of the survey structure. A pilot study was conducted with 8 participants and their feedback on overall content, wording, and survey length were considered in refining the survey. It took an average time of 15 min to complete. The sequence of different parts of the survey was designed that directly stated questions come after pairwise choice questions, to reduce potential bias of preference as the respondents progressed from one section to the next. Also, specific questions are introduced as cross checks to see if respondents answer same questions the same way twice. Question examples of Part II, Part IV and Part V of the survey can be found in Figure 3-3 to Figure 3-5. The first 27 questions in part II would be used to create the preference model. The remaining 5 questions in part II were the first holdout set of questions used to cross 25 validate the prediction accuracy of the model. The 5 questions of the contextualized images in part IV were the second cross validating set. These two question sets correspond with 5 randomly picked questions in the 27-question set, which means that the extra 5+5 questions have the same solar panel pairs as 5 previously asked questions. Part I Introduction: A general introduction of the study and an introduction of the four attributes of solar panels. Part II Preference for Non-contextulized Panel Images: A 32-question pairwise choices questionnaire. Each question asks the participants to choose a more preferred solar panel from two options. Respondents are asked to use the panel's appearance as the only criteria to consider when comparing the two panels. Non-contextualized images are used. Part III Direct Stated Attributes Preference Without Context: A direct statement survey asking participants to choose their most preferred level for each of the four attributes. Part IV Preference for Contextulized Panel Images: A five-question pairwise choices questionnaire. Each question asks the participants to choose a preferred solar panel between two options. Contextualized images are used. Part V Direct Stated Attributes Preference Within Context: A fivequestion solar panel design questionnaire. Each question presents a differnt house, and asks respondents to make a combination of the four attributes to create a solar panel that looks nice on the roof of that house. Part VI Demography: A questionnaire asking basic demographic information such as gender, age, geographical location and type of residence. Figure 3-2: Survey structure This repetition of questions should not be obvious to respondents if the total number of questions is sufficiently large. Thus there is only limited risk that par26 ticipants memorize their answers and make the same choice within same solar panel pairs intentionally. We can assume that every time a participant answers a question, whether he/she has seen it before or not, he/she will make the choice only based on their current judgment of the product appearance, not their memory of answers to previous questions and an obligation to answer consistently. Directly stated preferences for each attribute were elicited in part III and part V of the survey. The difference between these two parts is that part III asks participants' preference for solar panel attributes without any context; part V asks the attributes preference within the context of a given house image. Later, the results would be compared to the conjoint revealed preference. A B Only considering the appearance, which of the solar panels would you prefer? e A o B o None of the two Figure 3-3: Example survey question, Part II 27 A Which solar panel looks better on the roof? B sA eB e None of the two Figure 3-4: Example survey question, Part IV 3.4 Participants The survey was created using Qualtrics and distributed through Amazon Mechanical Turk, a crowdsourcing Internet marketplace where Human Intelligence Tasks are posted and completed by MTurk Workers. The respondents of the survey were confined to adults in the US. Informed consents from the participants were obtained at the beginning of the survey. Each participant was compensated with $1.50, approximately $6.00 per hour. A total of 227 participants responded to the survey. Two criteria were used to screen the data: 1. Response time: Surveys completed in too little time (less than 8 min) were considered to be low quality, and therefore were rejected; 2. Correct answer: In part II, an objective question (which also shows two solar panel images but instead of asking participants to choose the one that looks good, instructing the participants to choose the option 'None of the two') was set , and those that failed to choose the option as instructed were considered 28 Image that this is the house that you're going to install the solar panels on. What combination of attributes for the solar panel you would like to choose? Color Shape Pattern Frame " Black " Big rounded corner " No pattern " Silver frame " Blue " Small rounded corner main conducting " Red " Square " Two wire " Three wire main conducting " Green " Black frame " No frame Figure 3-5: Example survey question, Part V low quality thus were rejected. 33 of the responses were rejected, leaving 194 responses to the survey being used in the final data analysis. Among the valid data, the demographic information of the participants is as the following: 110 male, 84 female, age ranging from 20 to more than 60, all living in United States. 29 30 Chapter 4 Individual Preference Model 4.1 Research Questions First, all the data was analyzed on an individual level. Preference models were built for each participants, and the models were used to predict their preference choices. The main purpose of building preference models on an individual level is to assess how sensitive a customer might be to the particular way a panel is presented. As one might expect, solar panel datasheets generally showcase a panel on a blank background, without any visual context. However, residential solar panels are installed on roofs of widely varying color, shape, materials and slope. And the homeowners may not see how a panel looks on their own roof until after it is installed. This study poses three questions about preferences for a solar panel's appearance: 1. Are preferences for a solar panels appearance the same when a panel is presented in images within/without a context? 2. Are preferences consistent when the attributes of product appearance are evaluated all together (conjoint analysis) compared with evaluated separately (directly stated)? 3. If the preferences for product appearance are not consistent, then what are the main factors that influence preferences? 31 4.2 Data Analysis Methods The conjoint analysis data was analyzed using the Bradley-Terri-Luce (BTL) equation, which is often applied to pairwise comparison data [4]: P(xi,) = c(4.1) Wij Here xij is the jth level of attribute i. The probability that attribute xij will be chosen, P(x,,), is given by dividing wijc, the number of times attribute level x 3 was selected in the conjoint survey, by we,, the total number of times attribute level xij, was presented in survey. (4.2) ni = fi(xi) = P(Xi,) The part-worth utility of each attribute is estimated by the chosen probability. In Equation 4.2, ni is the estimation of part-worth utility of attribute i. fi is the mapping from level of attributes to the part-worth utility. The level with the highest utility was noted as the most preferred level of the attribute. The total part-worth utility of a product is given by the sum of that of each attribute: U=En (4.3) A larger part-worth utility represents a higher preference. When using the model to predict future choice, the product with the higher estimated part-worth utility will be chosen. Figure 4-1 shows a flow chart that explains the process of model creation, prediction, and comparisons of preference consistency. As can be seen in the flow chart, the 27 questions with non-contextualized images are used to create the preference model. Then the model is used to predict the customers preferences for the extra 5 questions with non-contextualized images, as well as the 5 questions with contextualized images. The prediction results are compared 32 Created from non contextualized image test data Model Data Collect Prediction sd theic Predict customer's choices using icd by2 w a theutilityprt-rc o worth Survey of preferences (for creating model) Survey of preferences (for aomnaring with Compare preferred levels elicited in different ways Non-contextualized contextualie DiractySad image to the choices real participantslcmade n for t 5+ usin oshwtepeito Compare the aesthetic preference elicited for 2 different kind of images to hei co preference model Compare actual choices with model predictions Figure 4-1:2-uIose.Ticmpronaorval Data Analysis reodiing qusInaige to the real choices participants made for the 5+5 questions to show the prediction accuracy of the model and to evaluate the p er tyence consistency. In addition, the answers to the extra 5 questions with non-contextualized images and the answers to the 5 questions with contextualized images are compared directly to their corresponding questions in the 27-question set. This comparison also reveals information about participants preference inconsistency. Later the most preferred levels revealed by conjoint analysis are compared to the responses to part III of the survey, where participants give answers to their most preferred level for each of the four attributes directly. The most preferred levels are also compared to the design outcome of the survey part V. 4.3 4.3.1 Results Bradley-Terri-Luce (BTL) Model By calculating the part-worth utility of each attribute level, the preference models were built for each participant. Figure 4-2 is an example from one participant. 33 The preference models are de- scribed by blue dots representing equation 4.1. The most preferred levels are marked by red bars. Preference for color 5O.S Preference for shape 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0 0 Black Blue Red Green Big Corner Preference for pattern Small Corner Square Preference for frame 0.5 0.5 - 0.4 - - - -.. - - - - - - 0.4 I 0.3 0.3 a .51 0.2 0.1 0 0 No Pattern Two Wires Three Wires Silver Black No Frame Figure 4-2: Preference model from one participant Figure 4-3 is a summary of the individual preference models. Later, the models are used to predict participants choices on other questions using equation 4.2. Using the preference model in Figure 4-2 as an example, when comparing: " A black panel with big rounded corner, no pattern cell, and a silver frame with " A blue panel with small rounded corner, two main contact wires cell with a black frame the estimated part-worth utility of the two panels are given as below: U1 =iColor - + tSh ape + UPattern 0.38 + 0.44 + 0.48 + 0.41 = 1.71 34 + fFrame (4.4) Color Preferences Shape Preferences 50.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 40.00% 10.00% 0.00% - 30.00% 20.00% Black Red Blue Means 35.70% 27.26% 18.39% 18.65% SD 15.07% 11.04% Big Green 8.04% Means 9.63% SD Pattern Preferences corner Sur 34.45% 37.11% 28.44% 11.18% 7.68% 13.28% Frame Preferences 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% - 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Small 3.1 284 corner No Pattern Two wires Three wires Means 39.22% 30.68% 30.10% SD 10.31% 7.81% 8.38% Silver Black No Frame Means 30.36% 34.51% 35.13% SD 6.84% 6.98% 6.26% Figure 4-3: Summary of individual preference model U2 --- lorO Shape + UPattern + UFrame = 0.13 + 0.37 + 0.15 + 0.33 - Since U 1 > U2 , the (4.5) 0.98 model predicts that this participant will prefer the first panel over the second one. If he/she does choose panel ii) over panel i), we claim that the model makes the right prediction. 4.3.2 Preference Inconsistency Across Different Visual Representations The last 5 questions in Part II (with non-contextualized images) and the 5 questions in Part VI (with contextualized images) of the survey are used for checking the accuracy of the model. Prediction accuracy is the number of right predictions made over the number of total predictions made by a preference model. Every participant has his/her own preference model and his/her own prediction accuracy value for both non-contextualized 35 image questions and contextualized image questions. Table 4.1 is a summary of 194 individual prediction accuracies. An average of 70.8% prediction accuracy of non-contextualized images suggests a relatively good prediction ability of the model when the image style doesn't change (note that the preference models were built based on participants' answers to the questions with non-contextualized images). However when the style of the images changes to contextualized image, the model does not work as well any more. Table 4.1: Prediction accuracy for two types of images Average St Dev. ANOVA Non-contextualized images 70.80% 22.30% F=57.44 Contextualized images 53.00% 24.00% p = 2.61 x 10-13 The small p-value for one-way ANOVA indicates that there is a significant difference between the prediction accuracy for questions with different styles of images. The prediction accuracy for contextualized image questions is much lower than that for non-contextualized image questions. For some people, their own preference models predict contextualized image questions more accurately than predict contextualized image problems for them. For some people, it is the opposite. For the others, their preference models predict both kinds of questions with same accuracy. Table 4.2 is a summary of the number of participants in these three categories. The results show that, more'than half of the participants have higher prediction accuracy for non-contextualized image questions. Table 4.2: Prediction accuracy comparison Non-contextualized > Contextualized Non-contextualized Contextualized 119 53 = Non-contextualized < Contextualized 22 In Table 4.3, the answers for the five non-contextualized image questions and the 36 Table 4.3: Preference matching rate Average St Dev. ANOVA Non-contextualized images 83.6% 18.8% F=80.39 Contextualized images 64.4% 23.2% p = 1.34 x 10-17 five contextualized image questions are compared directly to his/her previous answers to the corresponding questions. The results show the inconsistency of preference. When respondents answered a question the second time with the same style of image (non-contextualized), there was 83% chance they would state the same preferences that they did before. This random inconsistency has been observed before and the reason of the inconsistency was concluded as stochastic choice [33]. However, when respondents answered a question the second time in response to a different style of images (the contextualized images), only 64% chance they would still prefer the same solar panel. The small p-value of ANOVA indicates that the difference between the matching rates is significant. Thus the inconsistency of preference caused by changing image style is not random, but systematic. These together show a discrepancy of users response when first using non- contextualized images and then using contextualized images in the visual conjoint. In other words, when comparing images of non-contextualized panels, a respondent might prefer a green frameless panel to a black silver-frame, for example. However, when comparing the same two panels presented in the context of a roof, the respondent is very likely to change the preference and prefer the latter to the former, suggesting that the roof is able to change the respondents preference. 37 Directly Stated Preference Under Contextualized Con- 4.3.3 dition Figure 4-4 is a summary of the answers to the five solar panel design questions. The most preferred levels of attributes are also presented in the graph as a reference. It can be seen that people's choices for the most preferred level of each attribute changes under different circumstances. L100.00% Most preferred Shape Most preferred Color 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 70,00% ODesign I A - 3 - -- 50.00% Design 3 4000D% Design 4 30.00% Green Red 0 4 Design 5 Conjoint analysis 0.00% Big Corner stated Directly 00Des ign 10.00% nomConjoint analysis Blue Design I ODesign 2 20,00% Design 5 Black .- 60.00% Design 2 Smal Corner Square atllirectly statement Most preferred Frame Most preferred Pattern 70.00% 70,00% -Design 60.00% 1 -m" Design 3 anDesign 4 30.00% in 2000% 20.00% - --- 40 00% -- ---- - - Design 5 Design 1 Design 2 50M0% 40.00% 30.00% - 60.00% Design -------__ -- -__ - 2- 5000% 410 -Co Design 3 Design 4 ""Design 5 10.00% 10.00% -4-Conjoint analysis BNFm rConjoint 0.00% 0.00% No Pattern Two Wires Three Wires Silver -101Directly stated Black No Frame analysis 4HOmDirectly statement Figure 4-4: Summary of most preferred level of attributes As for shape, Square is the most preferred in four design questions out of five and Big Rounded Corner is always the least preferred. These are different from either conjoint analysis or directly stated answer. The reason for the differences could be that the shape of the tiles on the roof influences peoples preference for the shape of the cells on the panel. For pattern, No Pattern is the most preferred in all the five design questions, suggesting that a majority of the respondents find an even surface of the solar panels more attractive than patterned surface of the panels. For frame, No Frame is the most preferred for three design questions and Black Frame is the most preferred for the other two design questions. It seems that when the roof of the house has a dark color (gray), customers prefer Black Frame the most, 38 and when the roof has a light color (red, green or blue), No Frame is considered to be the best match. Silver Frame is always the least preferred one. Preferences for color changed the most under different design situations. The color of the roofs in the images provided is likely the main cause for the preference change as can be seen in Table 4.4. It was found that respondents tend to choose the color of the solar panel to match the roof: blue panels for blue roofs, red panels for red roofs, etc. In addition, Black is always a second preferred choice if not the first. Table 4.4: Color of the roof and first two preferred color in five design questions Design 1 Design 2 Design 3 Design 4 Design 5 Color of the roof Grey (with blue eaves) Grey (with white eaves) Red Green Blue First preferred color Blue Black Red Green Blue Second preferred color Black Blue/Red Black Black Black 4.3.4 Changing of 'Most Preferred' Attribute In Figure 4-4 the most preferred attributes revealed by conjoint analysis seem to match the directly stated most preferred attributes well. However, looking into details we can see that there is a high rate of chage for the most preferred attributes. Table 4.5 is a summary of the changes of most preferred attributes. The digit in row X colum Y represents the number of people whose most preferred attribute revealed by conjoint is X, and stated directly is Y. The bolded digits represent the number of people, of whom the most preferred attributes are consistent. Digits in gray cells represent the number of people whose most preferred attributes changed. We can see that the most preferred color revealed in the two ways generally consistent with each other. For pattern and frame however, though the summations of the most preferred attribute on each single level are similar, the inconsistency is high. Take pattern as an example: there are 36 people whose conjoint revealed favorite 39 pattern is No Pattern. However their directly stated favorite pattern is Two Contact Wires. It is almost 1/3 of the population whose conjoint revealed favorite pattern is No Pattern. 4.4 Discussion and Conclusions The results of this study show the existence of inconsistency when revealing appearance preference for solar panel from consumers. To answer the questions we asked in the beginning of this chapter: 1. Are preferences for a solar panels appearance the same when a panel is presented in images within/without a context? No. When the style of product representation of the solar panel changes from a non-contextualized image with a blank background to contextualized image within realistic context, the appearance preference shifts. We can see this from the significant difference of prediction accuracies as well as the significant difference of preference matching rates (Table 4.1 to Table 4.3). 2. Are preferences consistent when the attributes of product appearance are evaluated all together (conjoint analysis) compared with evaluated separately (directly stated)? No. The preference model reveals the appearance preference for solar panel when all the attributes are presented together within an integrated image. The directly stated preference represents the appearance preference considering the attributes independently. In this study, the preference for color is pretty consistent. However the preference for shape, pattern and frame are not consistent when evaluated in different ways. Table 4.5 shows the changing of most preferred attributes revealed in these two ways. However which one of these two preference-revealing methods is better is open to question and is out of the scope of this study. 40 3. If the preference for product appearance is not consistent, then what are the main factors that influence the preference? In this study the context in which the product is presented plays an important role in bias the appearance preference. This can be seen from respondents choices of color in part V of the survey (Table 4.4), when they are asked to choose the best combination of the attributes to create solar panels to match the roof of house given. It appears that, a majority of respondents consider the consistency of the color of solar panel and the color of roof represents a better looking. Thus the preference for the appearance of the solar panel is not only a question about the product itself, but also a question about what the environment in which the product is used looks like. Further we could argue that, the closer the visual representation looks to the final product and the closer the testing environment looks to the real using context, the more realistic the revealed appearance preference will be. Which product looks better can be a subtle question to ask, since insignificant factors such as the intensity of lighting could change people's opinion. Thus, when revealing consumers' preference for product appearance, it is important to make the visual representation look vivid, not only the product itself, but also the using context. In contrast, if the visual representation of the product is different from what it really looks like, designers may receive biased information about customer preference. The preference inconsistency could also be explained from a cognitive perspective [34]. When revealing preference using conjoint analysis, participants are shown a combination of the attributes as a whole product. Thus they can have a visual impression of what the product looks like with all the attributes. When deciding which solar panel looks better, they actually don't have to distinguish the individual attributes, but make decisions based on the general impression received from the images. However, when revealing preferences using direct statement, a list of attribute levels is showed and participants need to consider them independently. How a product looks with all the attributes is largely dependent on the participants' imagination. The difference between the ways customers evaluate the product could be the reason why preference for its appearance is changed. 41 Table 4.5: Changing of 'Most Preferred' attributes from conjoint analysis revealed to directly stated Directly stated Color Conjoint Analysis Black Blue Red Green Sum Black 95 5 1 1 102 Blue 9 40 1 2 52 Red 2 2 4 1 9 Green 11 8 2 10 31 Sum 117 55 8 14 194 Directly stated Shape Conjoint Analysis Big C Small C Square Sum Big C 29 38 22 89 Small C 10 34 29 73 Square 0 9 23 32 Sum 39 81 74 194 Directly stated Pattern Conjoint Analysis None Two Three Sum None 62 36 15 113 Two 22 18 8 48 Three 8 12 13 33 Sum 92 66 36 194 Directly stated rame Conjoint Analysis Silver Black None Sum Silver 14 20 7 41 Black 12 50 24 86 None 14 39 14 67 Sum 40 109 45 194 42 Chapter 5 Aggregated Preference Model 5.1 Research Questions In addition to individual preference model, an aggregated preference model was built for the solar panel appearance. This model could be an aesthetic representation of the population. The purpose of building this model is to identify the most important attributes that influence the appearance of a solar panel, reduce indifferent attributes/levels of attributes, and give out aesthetic levels of solar panels. There are two questions we would like to answer by building aggregated preference model in this chapter: 1. Generally, what levels of attributes help a solar panel to gain visual appealingness and what levels of attributes may impair the visual appealingness of a solar panel? 2. What attributes/levels of attributes dominate the appearance preference and what attributes/level of attributes are tend to be ignored? 5.2 Conditional Logit Model Analyze conjoint data on an aggregated level is a usual practice of marketing research, since it answers questions such as how attributes of a product are welcomed to the 43 market, what is the segmentation of the market etc., which are directly related to the business success of a product. Logit and probit discrete choice models are widely used in conjoint analysis. Conditional logit model was chosen here according to the pairwise choice questions used in the survey. Compared to multinomial logit model, conditional logit model is more appropriate here because the utility of choice among alternatives is modeled as a function of the characteristics of the alternatives, rather than the characteristics of the individual making the choice [35]. The conditional logit model: Ui = fz + ei (5.1) Where Ur is the utility of the customer choosing alternative i in the choice set n; ,8 is a set of parameters giving the effects of variables on probabilities, which are estimated statistically; zn is a vector of observed variables relating to alternative i in the choice set n that depends on attributes of the alternative; em is an iid random variable. The probability of alternative i being chosen in the choice set n is given by: P exp(pzi) _1=V (5.2) J=1eXP(#Zni) An underlying assumption of this model is that, there is no correlation among different attributes. Software R was used to estimate the conditional logit model. 5.3 5.3.1 Results Full Factory Model Since the levels of design attributes are nominal, a dummy variable 1 was used to indicate which level was used for each attribute. The dummy variables for the other 44 levels were set to 0. For the choice None of the two, dummy variables for all attribute levels were set to 0. One level of each design attribute was held out for reference, and their coefficients Ps were set to 0. For the following model, level Green of attribute color, level Square of attribute shape, level Three Main Contact Wires of attribute pattern, and level No frame of attribute frame are held out as reference. A dummy variable Constant (Cons) is added to the model to distinguish the null choice None of the two. If a solar panel was chosen, either A or B, the variable Cons is 1; is the choice None of the two was chosen, the variable Cons is 0. Table 5.1 shows the result of the coefficient estimation. P-value larger than 0.05 indicates that the coefficient of this level is not significantly different from that of the reference level, which is zero. Significant p-values are marked out by *. Table 5.1: Coefficients of the full model Attributes # exp(#) Standard Error z-value p-value Cons 1.2933 3.645 0.1015 12.74 O.Oe+00* CBlack 1.1235 3.076 0.0635 17.681 0.Oe+00* C..Blue 0.6873 1.988 0.0638 10.779 0.Oe+00* C..Red -0.124 0.883 0.0868 -1.429 1.50e-01 S.Large 0.2979 1.347 0.0565 5.276 1.3e-07* S-Small 0.3015 1.352 0.0493 6.117 9.5e-10* P.Even 0.6465 1.909 0.0536 12.068 0.Oe+00* P.Two 0.1047 1.11 0.0579 1.808 7.10e-02 F.Silver -0.0273 0.973 0.0552 -0.495 6.20e-01 F-Black 0.0813 1.085 0.0522 1.557 1.20e-01 Likelihood ratio test=3430 on 10 df, p=O n= 15714, number of events= 5238 We can see that, the coefficient of color Red is not significant, which means that theres no significant difference of preference for color Red to color Green. Similarly, theres no significant difference of preference for pattern Two Main Contact Wires to 45 pattern Three Main Contact Wires; and there's no significant difference of preference among all the frame styles. 5.3.2 Reduced Model A new model was built by reducing the number of variables and combining the attribute levels which receive no significantly different preferences. The attributes and their levels are listed out in Table 5.2. The levels marked by * will be held out as reference in the model. Table 5.3 shows the estimated coefficients of the reduced model. Table 5.2: Levels of attributes of the reduced model Level 1 Level 2 Color 3 Black Blue Shape 2 Square With corner* Pattern 2 Even Uneven* Level 3 Others * Attributes Num. of Levels Table 5.3: Coefficients of the reduced model Attributes 0 exp(#) Standard Error z-value p-value Cons 1.591 4.907 0.0732 21.73 0.00e+00 C.Black 1.188 3.28 0.0497 23.92 0.00e+00 CBlue 0.745 2.106 0.0541 13.77 0.00e+00 S..Square -0.271 0.762 0.0435 -6.24 4.50e-10 P..Even 0.606 1.833 0.0443 13.66 0.00e+00 Likelihood ratio test=3419 on 5 df, p=0 n= 15714, number of events= 5238 The positive coefficient of Cons (P = 1.591, p-value = 0) shows that participants usually chose one solar panel out of the two choices, instead of indicating they dislike any one of them. This preference is significant. 46 As for color, the combination of Red and Green were held out as reference. Black was indicated to be the most preferred one. And Blue was second preferred. As for shape, theres no significant difference between Small Corner and Large Corner, thus they were merge into one level as With Corner and was held out as reference. Generally they were more preferred than the Square shape, which has no corner. As for pattern, solar panels with even surfaces (No Conduct Wires) were shown to be much more preferred than those with uneven surfaces (Two/Three Main Conduct Wires). As for frame, theres no significant difference between any levels. Thus this attributes is eliminated from the final model. In addition, the demography information was explored to be included in the preference model. However none of them were proved to be significant. 5.3.3 Aesthetic Levels Using the reduced preference model, the estimated utility Ur = fz3r of a solar panel varies in the rage -0.271 to 1.794. Six designs of solar panels were chosen to be representatives of three aesthetic levels: high, medium and low (see Table 5.4). 5.4 Discussion and Conclusions By build conditional logit model, we can answer the two questions brought up in the beginning of this chapter: 1. Generally, what levels of attributes help a solar panel to gain visual appealingness and what levels of attributes may impair the visual appealingness of a solar panel? As for color, it seems that dark colors, such as black and blue, will make a solar panel looks more appealing; light colors, such as red and green, will make a solar panel less appealing. This is interesting since black and blue are colors normally used for 47 solar panels on market. Whether this preference is biased by the prevailing products on market could be interesting to explore. As for shape, solar cells with rounded corner make the solar panel more appealing to people. The corners are outcomes of the fact that monocrystalline solar cells are fabricated from round wafers and four edges are cut out from each wafer creating a square like shape with four round corners. Thus instead of a intentional design, the rounded corners are actually a byproduct of manufacturing constrains. However, the result still indicate that, solar panel with geometry patterns is more welcomed than that without any geometry pattern, which could be a guideline for design of future solar panels. As for pattern, solar panels with even surface are generally more preferred than those with contact wires on the surface. From a technical perspective, the contact wires cast shadows on solar cells thus reduce the panel efficiency. Therefore, to make the solar cells free from front side contact wire will satisfy both aesthetic tendency and efficiency requirement. 2. What attributes/levels of attributes dominate the appearance preference and what attributes/level of attributes axe tend to be ignored? In the scope of this study, the frame style of solar panels tends to be ignored by participants when stating their preference for panel appearance. All other three attributes are showed to be important. However it is possible that, some frame styles not discussed in this study can dominant the appearance preference. In addition, it is also possible that there exists design attributes significantly influencing the appearance preference for solar panels, however are not addressed in this study. Those attributes may worth further exploring as to optimize the appearance design of a solar panel, which is out of the scope of this study. 48 Table 5.4: Examples of solar panels with different aesthetic level Aesthetic Attributes combination Estimated Image level Low Medium High Color Shape Pattern Others Square Uneven -0.271 Others With corner Uneven 0 Blue With corner Uneven 0.745 Black Square Uneven 0.917 Black Square Even 1.523 With Even 1.794 Black corner 49 utility U 50 Chapter 6 Summary 6.1 Discussion and Conclusion This thesis investigates the consumers preference for the appearance of technology product with a case study of solar panels. In this work, four main attributes that influence the appearance of a residential solar panel are identified. Visual choice based conjoint analysis is used as a main method to reveal the preference model. The Bradley-Tem-Luce (BTL) model helps us to analyze people's preference on an individual level. And the preference revealed from non-contextualized images of solar panel with a blank background were compare to the preference revealed from contextualized images of solar panel within a realistic background. Inconsistencies of product appearance preference arise when the style of images presenting the product changes. The context in which the product is presented is believed to be the main factor that bias consumers preference. It is not necessarily true that one type of representation is inherently better than another, but if the goal is to increase solar panel adoption, the suggestion of this result is that panels that are designed to match home roofs are strongly preferred, regardless of the standalone styling of the panel. Other preference inconsistency observed in this study is the inconsistency between conjoint revealed preference and directly stated preference. This inconsistency could be caused by the difference between the appearance value construction processes of different preference elicitation methods of conjoint analysis and directly stated. 51 The conditional logit model enabled us to build the solar panel appearance model on an aggregated level. Some attributes and levels of attributes that related to solar panel appearance were found to be having significant influence in the preference model while the others plays minor role in the model. Therefore, the insignificant factors were eliminated and a reduced model was built. Using the reduced model, a set of examples of solar panels with different estimated aesthetic value was established. Here we give out conclusions for the two questions asked at the very beginning of this thesis: 1. What design attributes make a solar panel more visually appealing than the others? 2. Do different visual representations reveal consumer preferences for product appearance differently? On one hand, the study gives some explicit conclusion on what kind of solar panel has more appearance attractiveness to users: darker solar panels with rounded corner and non-texturized surfaced cells are the most appealing. When considering the appearance of solar panels on a house, the one that has similar color of the roof is more preferred. On the other hand, the result of the study has implications for the way stakeholders and companies represent their products to users and the broader world. The existence of preference inconsistencies suggests designers to be cautious when studying customers preference for product appearance. And the reasons behind the existence of inconsistencies give designers insights into how to address the real customer preference that will lead to higher satisfaction after the design of product completed. 6.2 Limitation of Current Work In this study, the existence of preference inconsistencies to product appearance is demonstrated by significant statistical data. However, the reasons behind them are 52 more of a qualitative analysis than quantitative experimental study. Thus designing an experiment to further proving the arguments made in this work is important. In addition, the attributes and levels of attribute studied in the work is not necessarily sufficient, thus the solar panels with combination of different attributes do not necessarily cover the whole design space. Explore the design space further could end up with solar panels with very different appearance (integrating solar cells with tiles on roof, for example) thus gives users a totally different experience of how this technology product looks like. Whats more, only two visual representatives are explored in this study: noncontextualized image and contextualized image. Different from usually consumer product, solar panel is basically a 2-D object (with large length and width but little thickness). This makes user perceive its appearance differently. Thus the usual visual representatives, such as sketching and FSV silhouette, may not be able to apply. However there could be other visual representatives, such as Illustrator generated pattern vs. realistic rendering image, that could influence the perception of appearance of the product. Last but not the least, only one kind of technology product is studied in this paper. 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