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.