Convergence in the high-technology consumer markets: Not all brands gain equally from adding new functionalities to products
Convergence in the electronics sector has allowed the addition of new functionalities to
products (eg, mobile television to a cell phone). It is proposed that the goal congruence of
the added functionality (ie, 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 …
products (eg, mobile television to a cell phone). It is proposed that the goal congruence of
the added functionality (ie, 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 …
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.
Springer
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