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Marketing Letters

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01.03.2009

Convergence in the high-technology consumer markets: Not all brands gain equally from adding new functionalities to products

verfasst von: Tripat Gill, Jing Lei

Erschienen in: Marketing Letters | Ausgabe 1/2009

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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.

Vorheriger Artikel Familiarity and competence diversity in new product development teams: Effects on new product performance

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New functionality here refers to functionalities that are new to the product to which it is added but may not be new to the world (e.g., mobile TV is not new to the world but new to the product when added to a PDA).

We thank an anonymous reviewer for this insight.

All p values reported in this article (that are associated with a t test) are based on a one-tailed test of significance.

The lower quality brand was labeled as a “basic brand” and was of relatively lower quality than the high quality brand. Please see Appendix for a sample product description used in one of the experimental groups.

Note that while the ceiling effect could explain the lack of gain for high quality brands in the case of an incongruent addition, it may not account for the null effect on performance uncertainty. Study 2 would explore this issue further, in order to validate the role of performance uncertainty.

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Titel: Convergence in the high-technology consumer markets: Not all brands gain equally from adding new functionalities to products
verfasst von: Tripat Gill
Jing Lei
Publikationsdatum: 01.03.2009
Verlag: Springer US
Erschienen in: Marketing Letters / Ausgabe 1/2009
Print ISSN: 0923-0645
Elektronische ISSN: 1573-059X
DOI: https://doi.org/10.1007/s11002-008-9050-5

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