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Question: Design vs. performance

Some marketers believe that product performance is the most important thing. Other marketers maintain that the looks, feel and other design elements of products are what really make the difference.

In your opinion, how important is design for a product? Let's try to think outside the obvious cases - luxury products, fashion, etc. See the info on the Fuse Project. Are there any other products where design could make a difference? what would you improve?

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