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

Abstract

In today's marketplace, many of the newer-generation convergence products (e.g., camera phones, all-in-one personal digital assistants) offer consumers product performance that rivals 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 studies, 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 the managerial implications and suggest directions for further research.

A Study of the Attitude toward Convergent Products: A Focus on the Consumer Perception of Functionalities

“…The first is the use of the student sample. Although students may be a key market for phones and other high‐tech devices (e.g., Han et al., ), they are clearly not representative of the entire population. Further research could use a larger, more representative sample.…”

“…The representative convergent product used was a smartphone due to its growing multifunctional use and its use in other convergent product studies (e.g., Han et al., ). Although the use of a student sample could also be seen as a limitation of this study, they are often seen as a key market for smartphones and other high‐tech devices and are appropriate for this study (e.g., Han et al., ). The research was conducted in the latter part of 2009 at the time of the introduction of the smartphone into the Korean market.…”

“…Convergent products are recently getting more and more attention (Gill, ; Gill and Lei, ; Han et al., ), although the concept itself resides within the older concepts of product bundling (e.g., Reinders et al., ; Stremersch and Tellis, ) and multiattribute products (e.g., Mittal, Katrichis, Forkin, and Konkel, ). In other words, the convergent product is a platform product bundle that integrates two or more platform technologies into a common product form which represents a renewed product offering.…”

“…In other words, the convergent product is a platform product bundle that integrates two or more platform technologies into a common product form which represents a renewed product offering. This has been mainly explored for digital products e.g., mobile phones (Han et al., ; Huh, ; Kim and Ko, ), in which there is unification of functionalities from previously distinct products that employ digital technologies (Yoffie, ). The nature of and why convergent products occur have been examined in detail in other studies (e.g., Rijsdijk and Hultink, ; Yoffie, ).…”

“…In spite of the growing significance of convergent products, there is relatively little research from which the researcher and practitioner can draw upon to fully understand the nature of consumer attitude toward convergent products. Although the important studies that exist have highlighted what functionalities add value to the base product, particularly as it relates to goal congruence (Gill, ; Gill and Lei, ); when consumers prefer dedicated products to convergent products (Han, Chung, and Sohn, ); and how consumers perceive smart products (Rijsdijk and Hultink, ), they, and other academic groups, such as the Marketing Science Institute (Marketing Science Institute, ), suggest more research is required. They suggest that more understanding is required on the value of convergent product functionalities and the effect of consumer characteristics on the perception, attitude, and purchase intention of convergent products.…”