Publication Type
Journal Article
Version
submittedVersion
Publication Date
12-2018
Abstract
Despite many convergence products rapidly approaching market saturation, academic research yet lags behind with the focus still on the primary demand in the introduction stage. The authors close this gap by focusing on how the labeling of convergence products may impact on value perception and upgrade intentions for these products. Convergence products, which combine multiple categories of products into a single device, create a unique naming dilemma for manufacturers and retailers: Whether to opt for (a) a subordinate label—a lower‐level descriptor or name that embodies its subcategory elements (e.g., smartphone or Apple’s iPhone) or (b) a superordinate label—a higher‐level descriptor or name which transcends its subcategories (e.g., multifunctional device or Samsung’s Galaxy). The authors investigate the effects of labeling choices (i.e., subordinate vs. superordinate) on consumer value perception and upgrade intention. Results of four studies demonstrate that the labeling options exert differential effects on perceived value and upgrade intention, while the use of subordinate (vs. superordinate) label lowers the present perceived value, it raises consumer’s intention to upgrade to a newer‐generation product.
Keywords
convergence product, intrinsic motivation, product replacement, subordinate label, superordinate label, willingness-to-pay, willingness-to-upgrade
Discipline
Marketing | Sales and Merchandising
Research Areas
Marketing
Publication
Psychology and Marketing
Volume
35
Issue
12
First Page
913
Last Page
922
ISSN
0742-6046
Identifier
10.1002/mar.21144
Publisher
Wiley: 24 months
Citation
HAN, Jin K.; CHUNG, Seh-Woong; and SOHN, Yong Seok.
What's in a name? The impact of subcategory salience on value perception and upgrade intention for multicategory products. (2018). Psychology and Marketing. 35, (12), 913-922.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5899
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1002/mar.21144