Convergence in the high-technology consumer markets: Not all brands gain equally from adding new functionalities to products |
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| Authors: | Tripat Gill Jing Lei |
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| Institution: | (1) Faculty of Business and IT, University of Ontario Institute of Technology (UOIT), 2000 Simcoe street north, Oshawa, Ontario, L1H7K4, Canada |
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| Abstract: | Convergence in the electronics sector has allowed the addition of new functionalities to products (e.g., mobile television
to a cell phone). It is proposed that the goal congruence of the added functionality (i.e., whether it has similar or different goals as the base product) would affect the relative
gain to high versus lower quality brands. While lower quality brands would gain when a congruent functionality is added, high
quality brands would gain from an incongruent addition. The former hypothesis was confirmed significantly and the latter marginally
in two experimental studies.
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| Keywords: | Convergence New products Brand quality Consumption goals Functionalities |
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