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

• Main Authors: HAN, Jin K., CHUNG, Seh-Woong, Sohn, Yong Seok
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: digital convergence; technology trajectory; intercategory choice; product bundling; dilution effect; Marketing
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1819; https://doi.org/10.1509/jmkg.73.4.97
• Institution: Singapore Management University

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.