A Mathematical Model of Factors Driving Product Success in an Indonesian Market using Design of Experiment

Abstract

Previous studies have not agreed on factors that affect the success of different kinds of products. These studies have used independent variables with a different number of success factors to examine several products, and some of these variables have been redundant. No standardized factor predicts the success of various products; thus, no generalizable result has provided a reference for further studies or use recommendations for practices. Therefore, this study produced a model that not only examined specific products and scope but also used a number of standardized success factors by building a mathematical model of the success factors that affect the success of various products. The study utilized 304 products from the Indonesian market as well as design of experiment to build the mathematical model. The results suggested that six standardized success factors affected the success of various products: (1) price, (2) product performance, (3) brands, (4) aesthetic design, (5) services and (6) marketing. Services and marketing (i.e., appropriately timed marketing) were positively correlated and proportional to the increase of market share. Therefore, focusing on the services and marketing factors that will drive the success of a product is important for many companies. The factors that positively drive success can be determined by characteristic sales in the Indonesian market.

Keywords

• design of experiment
• indonesian market
• mathematical models
• success factors