Technology Convergence: When Do Consumers Prefer Converged Products to Dedicated Products?

Publication Type

Journal Article

Publication Date

7-2009

Abstract

In today’s marketplace, many of the newer generation convergence products (e.g., camera phones, all-in-one PDA’s) offer consumers with product performances rivaling those of the dedicated versions. With the increased availability of options, consumers now face another dilemma in their purchase consideration: which product form should they choose—converged, dedicated, or both? This study investigates the choice patterns for product forms along the technology trajectories. In a series of four experiments, the authors find that at low levels of technological performance, consumers overwhelmingly select convergence products over the dedicated options; whereas, the choice pattern is reversed at high levels of technological performance. Furthermore, the authors demonstrate that a preannouncement of future technology can affect consumer preferences for product forms. Finally, they address managerial implications and directions for future research.

Keywords

digital convergence, technology trajectory, intercategory choice, product bundling, dilution effect

Discipline

Marketing

Research Areas

Marketing

Publication

Journal of Marketing

Volume

73

Issue

4

First Page

97

Last Page

108

ISSN

0022-2429

Identifier

10.1509/jmkg.73.4.97

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