Technology Convergence: When Do Consumers Prefer Converged Products to Dedicated Products?
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.
digital convergence, technology trajectory, intercategory choice, product bundling, dilution effect
Journal of Marketing
HAN, Jin K.; CHUNG, Seh-Woong; and Sohn, Yong Seok.
Technology Convergence: When Do Consumers Prefer Converged Products to Dedicated Products?. (2009). Journal of Marketing. 73, (4), 97-108. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/1819