Consumer Preferences for High-Tech Product Forms: Converged or Separate? Evolution of Technology & Reversal of Preferences
Year: 2005
Type: conference-paper
Abstract: 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.
Authors: Jin Han, Seh‐Woong Chung, Seok Sohn Yong
Institutions: Singapore Management University, Kyung Hee University
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2135261169