Consumer Preferences for High-Tech Product Forms: Converged or Separate? Evolution of Technology & Reversal of Preferences

• Main Authors: HAN, Jin K., CHUNG, Seh-Woong, YONG, Seok Sohn
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Marketing
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2567; https://ink.library.smu.edu.sg/context/lkcsb_research/article/3566/viewcontent/HanJKConsumerPreferencesHigh_TechProduct.pdf
• Institution: Singapore Management University

With the surging popularity and growing availability of convergence products (e.g., camera phones, all-in-one PDAs) in high-tech product categories, consumers now face another dilemma in their purchase consideration: which product form converged, stand-alone, or both? This study sets out to investigate pattern(s) of consumer preferences for product form along the evolution of technology trajectories. In two experiments, we find that, at low levels of technological performance, consumers show an overwhelming preference for the converged product form over the dedicated counterpart; whereas, at a higher technological performance level, the pattern of preferences is reversed. Furthermore, we observe that a preannouncement of even higher technology can shift consumer preference from one product form to another. We forward dual (product form-specific) performance reservation values as a key mechanism underlying the observed preference structure. Other issues explored include complement vs. substitute intercategory dynamics. Finally, managerial implications and directions for future research are also discussed./abstract