Abstract: Design is a very important driving force of innovation which has been getting increasing attention by entrepreneurs and academic researchers. This paper purpose to explore how different dimensions of design influence customers` perceived quality, purchase intention and word of mouth for incremental and radical innovation. Using data from two samples of incremental innovation and radical innovation, the results indicate that for incremental innovation, aesthetic and functional dimensions of design not only have significantly direct influence on customers` purchase intention and word of mouth but also have indirect influence on customers` purchase intention and word of mouth. For radical innovation, aesthetic and functional dimensions of design have to influence on customers purchase intention and word of mouth indirectly through customers` perceived quality. Furthermore, no difference was found between incremental and radical innovation for the effects of symbolic dimension of design on customers purchase intention and word of mouth, the symbolic dimension of design has a directly positive influence on customers purchase intention and word of mouth but has insignificant influence on customers` perceived quality for both innovation categories.