Consumer Attitude Towards Product Convergence

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ConsumerAttitudeTowardsProductConvergence

2

011

ProductManagem

entProject

SUBMITTED BY:

ANKIT SINGH

UTTAMA MALAVIYA


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Consumer Attitude Towards Product Convergence 2011

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Table of Contents

1. EXECUTIVE SUMMARY: .................................................................................................................... 32. INTRODUCTION: ............................................................................................................................... 43.

LITERATURE REVIEW: ....................................................................................................................... 6

4. OBJECTIVE: ....................................................................................................................................... 75. DATA & METHODOLOGY:................................................................................................................. 76. RESULTS & ANALYSIS: ...................................................................................................................... 87. IMPLICATIONS for the PRODUCT MANAGER: ................................................................................ 178. CONCLUSION: ................................................................................................................................. 179. BIBLIOGRAPHY: .............................................................................................................................. 1810.ANNEXURE: .................................................................................................................................... 19


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EXECUTIVE SUMMARY

The convergence of electronic products is leading to ground-breaking technological solutions

and new opportunities for business growth as well as product differentiation in the electronics

sector. Encouraged by such technological advancements, increasing consumer demands, andmarket pressures, firms in all the sectors of electronics industry have already created a full

spectrum of the converged products. For example, a washing-machine which helps in washing

clothes, rinse and dries them as well as has a timer that can be set according to ones' own

convenience. The new innovative products are resulting in making life and work simpler,

providing an all together different experience to the user along with a better standard of living.

Developing a converged product requires not only the integration of similar technologies but

also the amalgamation of disparate technologies. Hence, synchronization of goals is critical to

the success of such radical innovations.

Nowadays, it is not unusual to click pictures using a cell phone, to check e-mails on a personal

digital assistant (PDA) or to listen to music on an IPod. Keeping in mind the given facts, this

PROJECT i.e. Consumer attitude towards Product Convergence has been undertaken by our

group.

A Convergent Product(CPs)can be defined as a product which has been formed due to the

addition of a new functionality1(acquired from another category) to an existing base product.

For instance, as mentioned above, camera phones have added the ability of clicking pictures

with a cell phone, which could earlier be possible only through digital cameras.

The technical possibilities to assimilate new functionalities are almost infinite; however, do

consumers truly value all innovative features equally? Or are there strategies which may

possibly serve product managers in understanding the consumers perception towards such

products thereby enabling them to assess what to integrate into a given base product?

The project aims to answer the given questions as well as propose strategies for product

managers.

Once a new technology rolls over you, if you're not part of the steamroller, you're part of the

road. --STEWART BRAND

1New functionality can be defined as those functionalities that are new to the product to which they are added,

although they may not be new to the world otherwise.


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INTRODUCTION

Product Convergence is a new phenomenon which highlights an exemplar in the concomitant

high technology electronics sector (example, intersection of consumer electronics,communications and computers). This has enabled the introduction of ostensibly distinct

functionalities into existing products (example, ability to access internet and click pictures from

cell phones).

In such a scenario, the key concern is to determine the type of new functionalities which can be

added to a given base product. For instance, a cell phone manufacturer might wonder whether

it will be a good proposal to append a camera to a cell phone, which would imply adding a fresh

functionality that is contradictory to the existing functions of a cell phone i.e. communication.

Conversely, it will probably be a better idea to add a new functionality which is similar to the

functionalities of a cell phone (example, enabling faster and improved communication through

internet).

There are mainly two factorswhich affect the convergence of products:

1. Goal Congruency: This means that there should be a harmony between the baseproduct and the new functionality which has been added to it. The new added

functionality can either be congruent or incongruentto the base product. This can be

explained on the basis of the incremental value addition which the user can derive from

the functionality.

2. The Nature of the Base product:a. Utilitarian- This describes the functional features of the base product. For

example, the ease of using a mobile phone for communication purpose.

b. Hedonic- This is associated with experiential consumption, pleasure, andexcitement. For example, the pleasure derived from listening to music from an

Apple I-pod.

On the basis of the above two factors, product congruence can further be divided into four

categories, which are as follows:

PRODUCTS FUNCTIONALITY BASE CONGRUENCY1. UTILITARIAN(U) UTILITARIAN(U) CONGRUENT(U+U)

2. HEDONIC(H) UTILITARIAN(U) IN-CONGRUENT(H+U)

3. HEDONIC(H) HEDONIC(H) CONGRUENT(H+H)

4 UTILITARIAN(U) HEDONIC(H) IN-CONGRUENT(U+H)


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The above table clearly shows the various combinations of functionality and bases which

combine to form converged products. The combination of two similar nature of bases and new

functionality is considered to be congruent as it is a combination of symmetric nature resulting

into addition of more features (when both are Utilitarian) or hedonic values (when both are

Hedonic).The two congruent combinations will be subject to diminishing marginal utility.

The combination of two dissimilar natured bases and functionality leads to an in-congruent or

asymmetric combination which can have different results. Adding a hedonic functionality to a

utilitarian base has more benefits than when a utilitarian functionality is added to a hedonic

base. The former combination will enhance the utilitarian base while in the latter; the utilitarian

functionality will dilute or eat away the value of the hedonic base. The validity of the

combinations can have different outcomes if considered on the basis of high/low brands.

By combining the earlier basic technological products with new and innovative technologies

firms are building distinct products which offer increased efficiencies, effectiveness,

convenience and value to the consumer.Moreover, the expanding consumer demands is also

compelling firms to come up with drastically diverse range of products that cater to their day-

to-day needs. Technological leaders in view of convergence must craft strategic decisions in

adopting and managing the convergence conduit.

In this project, we emphasize on an assortment of examples of converged products in the

technological industry, recognize the dynamic forces in the wake of the convergence trend, and

confer the pathways that are seen in the marketplace today. We also understand the

underlying factors behind consumers willingness to purchase a converged product besides

providing suggestions for a product manger as to how he can augment various functionalities to

a particular product.


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LITERATURE REVIEW

The advent of product convergence in the electronics sector has enabled the electronics

sector to add more functionality to the existing base products (Yoffie 1997). This has allowed

the managers to come up with new products from time to time, leading to base products whichhave more than one add-on (Tripat Gill, Jing lie 2008). There are many base products in the

market which can be converged with new functionalities to arise with a fresh product.

However, for such products the matter of concern is in determining the kind of novel

functionalities which can be added to a given base product. The nature of additions in

Converged Products is based on the UTILITARIAN and HEDONIC Consumption Goals allied with

the base product and the added functionalities. Consumers are well-known to have both

utilitarian and hedonic considerations when evaluating products and functionalities Batra and

Ahtola 1990; Dhar and Wertenbroch 2000). The important question to be answered here is that

whether nature of additions (goal congruent versus incongruent) affects the assessment ofconverged products. The goal congruency factor plays a major role for people who own

converged products of hedonic value more than that for utilitarian value (Tripat Gill 2008).

In a research study conducted it was also seen that the goal congruence of the added

functionality affected the value addition to high versus lower quality brands (Tripat Gill, Jing lie

2008). Consumers are well aware about the features of a particular product, the complexity

associated with it and the difficulty in its usage, yet, capability over powers usability (Roland T.

Rust, Debora Viana Thompson and Rebecca W. Hamilton 2004).

In another research conducted it was found out that the comparison of a new functionality with

the existing functionality is effective only then when the new functionality is offered in a

product that is a typical of the existing product (Paschalina (Lilia) Ziamou & S. Ratneshwar

2003). With todays market place being flooded with variety of converged product offerings

consumers are facing dilemma with regards to which products to purchase, the converged

ones, or the dedicated products or both. In a study conducted to know these patterns it was

concluded that at low levels of technological performance consumers willingly purchased

converged products but the pattern is reversed in the case of high technological performance

(Jin K. Han, Seh Woong Chung, & Yong Seok Sohn 2009).


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OBJECTIVE

As explained earlier, it is very common to add diverse new functionalities to existing base

products (e.g., adding camera to a mobile phone or internet access to a personal digital

assistant). These convergent products offer users a broad choice of potential applications.However, it is not clear what additions are actually valued by consumers, and therefore also

make sense from a product managersperspective. The objective of the project is to address

this very issue. We explore the role of consumption goal (utility versus fun-oriented) associated

with the base product and the added functionality. On the basis of the results we recommend

several suggestions for the product manager on how to extend existing products to create more

value for the consumers.

DATA & METHODOLOGY

The methodology adopted was exploratory research i.e. Focus group discussion and face to

face survey. The reason for adopting this methodology was to know the factors which affect the

buying behavior of consumers for functional and experiential products.

Focus Group Discussion:

We had conducted four focus group discussions comprising of 7 members each, the

participants were students of IBS, Hyderabad who are highly involved in electronic products

and are tech-savvy consumers. The participants were briefed about the definitions of the

functional and experiential products. These respondents were guided and probed into afocused discussion about factors which influenced their purchasing decision of functional and

experiential products. At the end of the Focus Group Discussion, the respondents filled a

questionnaire. The questionnaire comprised of combinations of base products and added

functionalities. The base and the added functionality had various combinations of utilitarian

and hedonistic orientations. For example, addition of a Utilitarian functionality to a Utilitarian

Base. We took 4 such combinations with 3 set of converged products for every combination.

The respondents were asked questions regarding their perception of converged products in

functional and experiential orientations.

Face to Face Survey:

We had conducted twenty four face to face surveys; the participants were students of IBS,

Hyderabad who are highly tech-savvy consumers. The participants were briefed about the

definition and the characteristics of functional and experiential products. The objective of

briefing the respondents was to acquaint them with the types of products in order to get better

results. The respondents were subjected to the same questionnaire as discussed above in focus


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group discussion. The only problem we faced was that the respondents were unclear about the

definitions and we had to make them understand the differences and clear their doubts.

RESULTS & ANALYSIS

QUESTION RESPONSES FREQUENCY

What attributes do you associate

with EXPERIENTIAL products?

Luxury 3

Relaxation, Leisure 2

Needs/Demands 3

Technological up gradation

Budget is low

Brand name 2

Brand Association-Pride

All in one usage

Uniqueness/Differentiation

Way of showing off

Brand Personality 2

Customer Feedback

After sales service

Price 6

Profession

Utility, Multiple uses 2

Entertainment 1

Quality(Guarantee/Warranty) 6

Affiliation

Style 2

Share-of-wallet(High) 2

Complexity

Income 2

Status quo,Lifestyle 2

Less Involvement product 2

QUESTION RESPONSES FREQUENCY

What attributes do you

associate with FUNCTIONAL

products?

Requirement/Need 10

Utility , Assist in day-to-day life 8

Reliability

Duration/Longevity

Fulfillment of needs

Quality(Duration/Longevity, Guarantee/Warranty) 10

No budget constraints


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Productivity(less of time consumed, more work

done,Efficiency) 4

Profession 2

Innovation

Convenience(ease of use) 3

Price 4

Status symbol, Status quo 2

Brand 3

After sales service 2

High Involvement product) 3

Share of wallet 2

Complexity 2

Income 2

Place ( Climate)

The above given analysis was a prerequisite for the questionnaire which has been added in the

annexure.

Gro

upNO. Name

FastTrack

Watch with a

Magnetic

Compass

Philips

Mixer with

Food

Processor

Samsung

PDA with a

GPSIDEALLY

U+U=Congruent

U + U U + U U + U

I 1 Abheek F F E E= 1 , F=2

I 2CHANDNI

SINGLAE F E E= 2 , F=1

I 3 APURVA E F F E= 1 , F=2

I 4 NUPUR KEDIA E F F E= 1 , F=2

I 5 ROHAN AWTANI E F E E= 2 , F=1

I 6 KAMAL RAMANI E E E E= 3 , F=0

I 7 ANIMESH F E E E=2 , F=1

E= 5 , F=2 E= 2 , F=5 E= 5 , F=2 E=12, F=9

II 1 MRINAL E E F E= 2 , F=1

II 2 ROHIT KHAITAN F E F E= 1 , F=2

II 3 MUDIT E F E E= 2 , F=1


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II 4 GAURI INDUKAR F F E E= 1 , F=2

II 5 PRANAY E E E E= 3 , F=0

II 6PRINITA

BHASKARE F E E= 2 , F=1

II 7 PRIYAM P KAUR E F F E= 1 , F=2

E= 5 , F=2 E= 3 , F=4 E= 4 , F=3 E= 12 , F=9

III 1 ANKITA BHATIA F F F E= 0 , F=3

III 2RAGHAV

MARKANDAE F E E= 2 , F=1

III 3 SIMAR F F F E= 0 , F=3

III 4 REEMA E E E E= 3 , F=0

III 5 SONAL F F F E= 0 , F=3

III 6 DHRUV F E F E= 1 , F=2

E= 2 , F=4 E= 2 , F=4 E= 2 , F=4 E= 6 , F=12

IV 1 ASHISH ROY F F E E= 1 , F=2

IV 2 RHEA ANAND F F F E= 23 , F=0

IV 3 ADITYA CHAWLA F F E E= 1 , F=2

IV 4PRIYANKA

SASREENF F F E= 0 , F=3

IV 5 SAURABH SAINI F F E E= 2 , F=1

IV 6GYANESHWARI

SINGHE F E E= 2 , F=1

IV 7 SHUBHASHRI F F F E= 0 , F=3

IV 8 SAURABH AHUJA F F E E= 1 , F=2

E= 1 , F=7 E= 0 , F=8 E= 5 , F=3 E= 6 , F=18

TOTAL E= 36 , F=48

Group NO. Name

Nokia

Mobile

Phone

with a

Camera

Samsung

PDA with

a Satellite

Radio

Nike

Shoes

with IpodIDEALLY U+H=

Incongruent

U + H U + H


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I 1 Abheek F E E E= 2 , F=1

I 2 CHANDNI SINGLA F E E E= 2 , F=1


I 4 NUPUR KEDIA F E E E= 2 , F=1

I 5 ROHAN AWTANI E E E E= 3 , F=0

I 6 KAMAL RAMANI F F E E=1 , F=2

I 7 ANIMESH E E E E= 3 , F=0

E= 3 , F=4 E= 5 , F=2 E= 6 , F=1 E= 14 , F=7

II 1 MRINAL E F E E= 2 , F=1

II 2 ROHIT KHAITAN F E E E= 2 , F=1

II 3 MUDIT F E E E= 2 , F=1

II 4 GAURI INDUKAR F F F E= 0 , F=3

II 5 PRANAY F E E E= 2 , F=1

II 6 PRINITA BHASKAR E E E E= 3 , F=0

II 7 PRIYAM P KAUR F E E E= 2 , F=1

E= 2 , F=5 E= 5 , F=2 E= 6 , F=1 E= 13 , F=8

III 1 ANKITA BHATIA F E E E= 2 , F=1

III 2 RAGHAV MARKANDA E E E E= 3 , F=0

III 3 SIMAR F F E E= 1 , F=2


III 5 SONAL E E F E= 2 , F=1

III 6 DHRUV F E E E= 2 , F=1

E= 3 , F=3 E= 5 , F=1 E= 5 , F=1 E= 13 , F=5

IV 1 ASHISH ROY F E F E= 1 , F=2IV 2 RHEA ANAND F E E E= 2 , F=1

IV 3 ADITYA CHAWLA F E E E= 2 , F=1

IV 4 PRIYANKA SASREEN F E F E= 1 , F=2

IV 5 SAURABH SAINI F E E E= 2 , F=1

IV 6 GYANESHWARI SINGH E E E E= 3 , F=0


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IV 7 SHUBHASHRI F F E E= 1 , F=2

IV 8 SAURABH AHUJA F F F E= 0 , F=3

E= 1 , F=7 E= 6 , F=2 E= 5 , F=3 E=12 , F=12

TOTAL E= 52 , F=32

Group NO. Name

Cannon

Camera

with a

Projector

Sony

Television

with a

Gaming

Console

Sony MP3

Player

with a

Satellite

Radio

IDEALLY

H+H = Congruent

H + H H + H H + H

I 1Abheek E E F

E= 2 , F=1I 2 CHANDNI SINGLA E E E E= 3 , F=0


I 4 NUPUR KEDIA F E E E= 2 , F=1

I 5 ROHAN AWTANI E E E E= 3 , F=0

I 6 KAMAL RAMANI E E E E= 3 , F=0

I 7 ANIMESH E E E E= 3 , F=0

E= 6 , F=1 E= 6 , F=1 E= 5 , F=2 E= 17 , F=4

II 1 MRINAL E E E E= 3 , F=0

II 2 ROHIT KHAITAN E E E E= 3 , F=0

II 3 MUDIT E E E E= 3 , F=0

II 4 GAURI INDUKAR F F E E= 1 , F=2

II 5 PRANAY F E E E= 2 , F=1

II 6 PRINITA BHASKAR F E E E= 2 , F=1

II 7 PRIYAM P KAUR E E E E= 3 , F=0

E= 4 , F=3 E= 6 , F=1 E= 7 , F=0 E= 17 , F=4

III 1 ANKITA BHATIA E E E E= 3 , F=0

III 2 RAGHAV MARKANDA E E E E= 3 , F=0

III 3 SIMAR E E E E= 3 , F=0


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III 5 SONAL E E E E= 3 , F=0

III 6 DHRUV E E E E= 3 , F=0

E= 6 , F=0 E= 6 , F=0 E= 6 , F=0

E= 18 , F=0

IV 1 ASHISH ROY E E E E= 3 , F=0

IV 2 RHEA ANAND F E E E= 2 , F=1

IV 3 ADITYA CHAWLA E E E E= 3 , F=0

IV 4 PRIYANKA SASREEN F E E E= 2 , F=1

IV 5 SAURABH SAINI E E F E= 2 , F=1

IV 6 GYANESHWARI SINGH E E E E= 3 , F=0

IV 7 SHUBHASHRI F E E E= 2 , F=1IV 8 SAURABH AHUJA F E E E= 2 , F=1

E= 4 , F=4 E= 8 , F=0 E= 7 , F=1 E= 19 , F=5

TOTAL E= 71 , F=13

Group

NO.

Name

Samsung

MP3 Player

with USB

functionalit

y

Apple IPod with

Telephone

Directory/Calendar

LG

Television

with in-

Built Set

top Box

IDEALLY

H+H =InCongruent

H + U H + U H + U

I 1 Abheek F F F E= 0 , F=3

I 2 CHANDNI SINGLA F F E E= 1 , F=2

I 3 APURVA F F F E= 0 , F=3

I 4 NUPUR KEDIA F F F E= 0 , F=3

I 5 ROHAN AWTANI E F E E= 2 , F=1

I 6 KAMAL RAMANI F E E E= 2 , F=1

I 7 ANIMESH F F F E= 0 , F=3

E= 1 , F=6 E= 1 , F=6 E= 3 , F=4 E= 5,F=16

II 1 MRINAL E F E E= 2 , F=1


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II 2 ROHIT KHAITAN E E F E= 2 , F=1

II 3 MUDIT E E F E= 2 , F=1

II 4 GAURI INDUKAR E F E E= 2 , F=1

II 5 PRANAY E E E E= 3 , F=0

II 6 PRINITA BHASKAR E E E E= 3 , F=0

II 7 PRIYAM P KAUR F E F E= 1 , F=2

E= 6 , F=1 E= 5 , F=2 E= 4 , F=3E= 15 ,

F=6

III 1 ANKITA BHATIA E E F E= 2 , F=1

III 2RAGHAV

MARKANDAF E F E= 1 , F=2

III 3 SIMAR E F E E=2 , F=1

III 4 REEMA F E F E= 1 , F=2

III 5 SONAL E F F E= 1 , F=2

III 6 DHRUV E E F E= 2 , F=1

E= 4 , F=2 E= 4 , F=2 E= 1 , F=5 E= 9 , F=9

IV 1 ASHISH ROY E E E E= 3 , F=0

IV 2 RHEA ANAND E E E E= 3 , F=0

IV 3 ADITYA CHAWLA F E F E= 1 , F=2

IV 4 PRIYANKA SASREEN F F F E= 0 , F=3

IV 5 SAURABH SAINI F F E E= 1 , F=2

IV 6GYANESHWARI

SINGHE E E E= 3 , F=0

IV 7 SHUBHASHRI E F E E= 2 , F=1

IV 8 SAURABH AHUJA E F F E= 1 , F=2

E= 5 , F=3 E= 4 , F=4 E= 5 , F=3 E=14,F=10

TOTAL E= 43,F=41

According to the research paper by Tripat Gill, Convergent Products what Functionalities

added more value to the base, combining a utilitarian base product with a utilitarian


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functionality, the resultant product is congruent i.e. it is having a utilitarian image or

perception.

I. Utilitarian + Utilitarian = CongruentComparing the results of FGD-1, 2, 3 & 4, wherein the base and the added functionality is

utilitarian, the response of the group on the whole is 36 experiential and 48 functionaloutcomes. From this, we can infer that there are certainly some factors which have affected the

view point of respondents to 36 experiential outcomes, thereby contradicting the given theory.

The reasons for the same can be:

BRAND: Considering the case of FASTRACK we have observed that the consumers

perceive it as a stylish and trendy brand and hence some of them perceive it to be an

incongruent convergence. The product manager can very well comprehend from this

that his brand is highly placed in the consumers preference set and despite the addition

of a new functionality (which is congruent) it is not much appreciated by the consumer.

Therefore, he should consider adding an incongruent functionality which might beperceived by the consumer as something new and innovative.

Goal congruency has been appropriately expressed by the respondents in case of

Phillips mixer with food processor as it contains 21 out of 28 respondents giving

functional as their answer. Hence, we can infer that the respondents understand the

utility of the converged product (goal congruent).

SAMSUNG PDA, as perceived by the respondents, is an exceedingly innovative product

which has shaped a different image in the respondents mind as 16 out of 28 responses

are experiential. The job of the product manager is to educate customers in a defined

approach regarding the product so that he perceives the real utility or goal congruencyof the particular product.

II. Utilitarian + Hedonic = IncongruentThe result of all the FGDs gives a statistic of 52 experiential and 32 functional outcomes, clearly

stating that the converged product is incongruent. The fourth FGD validates the above goal

incongruence, showing 12 experiential and 12 functional outcomes. The reasons for the same

can be:

The base functionality (Nike shoes, Samsung PDA) when added with an experiential

functionality (IPod, Satellite Radio), creates an obscure picture on the respondentsmind and they perceive it to be incongruent.

On the other hand, Nokia phone with a camera is understood as more of functional

than experiential as respondents believe that mobile is a necessity with high

dependence by consumers and they simply cant do without it.

III. Hedonic + Hedonic = Congruent


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The third combination of products produces 71 experiential and 13 functional responses,

indicating that the converged product is congruent. The third FGD validates the above goal

congruency rule with 18 experiential and 0 functional outcomes. The reasons for the same can

be:

Most females consider Cannon Camera with Projector as functional. The rationalebehind it could be that they are more inclined towards capturing moments and

treasuring it as memories which can be revived in the future.

With the other two products there is not much differentiation and it implies the goal

congruency in these cases.

IV. Hedonic + Utilitarian= IncongruentThe last combination generates 43 experiential and 41 functional outcomes. It shows that the

converged product is incongruent. The third FGD validates the same having 9 experiential and 9

functional outcomes. The combination, hedonic base with a utilitarian added functionality hascasted a mix outcome on the minds of respondents. The respondents are unable to capture the

overall effect of convergence in terms of hedonic or utilitarian. This convergence creates an

asymmetric additive effect 2 in the minds of respondents due to which the respondents have

different view points. So there is a risk for the company that the consumer might not like that

particular product while choosing products under the same category with diverse

combinations. A simple example can be the failure of Web TV wherein the TV (Base) was

combined with the Web Interface functionality.

We can deduce from the above research that the converged products formed by the addition of

hedonic base and hedonic added functionality have the highest goal congruency as such a

combination is most preferred by the consumers. It also helps them in making better

purchasing decision. The converged product formed with hedonic base and utilitarian added

functionality is perceived as highly ambiguous by the respondents, which can result in product

failure.


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IMPLICATIONS for the PRODUCT MANAGER

The product manager should delve into the outcomes of the converged product in order

to make branding more effective tool.

It is imperative for product managers to understand that too much complexity in terms

of product features convergence should be avoided as the consumer might not

understand the actual usage of the product and does get disappointed after using it.

The product mangers should be meticulous about new converged products as radical

changes can shift the base products line to other categories.

The branding can also have an incongruent impact on the product convergence which

can have adverse effects on consumers mind. The product manager should take into

consideration of brand while designing the new product convergence in order to bridge

the gap between what the product imparts and what consumers perceive.

Goal congruency should be taken care of during product convergence as this affects

branding a lot, as it has often been seen that lower brands gain when congruent

products are added to them whereas bigger brands loose out when congruent products

are added.

A research should be conducted before and after the product launch to know whether

the consumer is satisfied with the product or not. This can assist the product manager to

formulate strategies for future.

CONCLUSION

The current project explores the perception of consumers towards converged products which

have been formed by adding new functionalities to existing base products. It can be concluded

that the accrued significance of converged products is subjected to an asymmetric additivity

effect. Further, the product manager should be aware of his brand as the consumers

differentiate products on the basis of the same (product of high quality brand is better than

that of a low quality brand). He should know the real worth of the brand and conceptualize the

products accordingly. Moreover, the product manger should understand the impact of any

radical innovation on the consumers mind and consequently introduce new features.Innovators will be willing to purchase such products followed by imitators, however, it might be

that after the usage of the product, due to its complexity, the imitators do not achieve the

desired satisfaction levels and decide not to use it further. If neglected, this can also dilute the

brand in a long run. Hence, it is imperative to conduct a market research pre and post product

launch to gauge the consumer perception towards the particular product.


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In addition to the given conclusions, we can dig deeper into the research and find out reasons

for each individual perceiving various products in an all together different fashion and the

extent to which he/she justifies his/her view point. We have formulated another questionnaire

to determine the degree of importance given to various factors which a consumer considers

before purchasing a product.

BIBLIOGRAPHY

Gill, T. (2008). Convergent Products: What Functionalities Add More Value to the Base? Journal of

Marketing.

Jin K. Han, S. W. (2009). Technology Convergence: When Do Consumers Prefer Converged Products to

Dedicates Products?Journal of Marketing.

Ratneshwar, P. (. (2003). Innovations in Product Functionality: When and Why are Explicit Comparisons

Effective?Journal of Marketing.

Roland T.Rust, D. V. (n.d.). Defeating Feature Fatigue. Harvard Business Review.

Tripar Gill, J. L. (2008). Convergence in the high-technology consumer markets: Not all brands gain

equally from adding new functionalities to products.


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Quality 5

Profession(Business class )

After sales service 2

Comfort , Leisure 3

Price

Value for money 5

Style

Snob effect

Demonstration effect & Sales Person

Convergence

Peer Pressure

Word-of-mouth

FGD -1

(12:39 mins)

FGD -2

(19:25 mins)QUESTIO

N RESPONSES

FREQUEN

CY RESPONSES

FREQUEN

CY

What

purpose

do you

use

technologi

calproducts

for?

Communication 3 Communication 3

Storage Needs 3

Entertainment 4 Entertainment 4

Social Networking 2 Improved living standards

Relaxation Convenience 4

Medical purpose Productivity 2

Work Status symbol

Information Serach

Professional

constraints(working people)

What

factors

compell

you to

buy such

product?

Need Business class

Brand Status quo

Price Needs 2

Utility Modernization era

Technical Aspects Utility 2

Trends Technology

Status quo Quality

Convenience Brand

Compulsion due to peer

pressure Productivity 3

Technological Convenience 2


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upgradation

What

attributes

do you

associate

withfunctional

products?

Requirement/Need 3 Needs 4

Assist in day-to-day life

Productivity(less of time

consumed, more work done)

Efficiency Profession 2

reliability Innovation

Duration/Longevity Utility(Day-to-day usage) 5

Fulfillment of needs Convenience(ease of use) 3

Quality Price 3

Gurantee/Warranty Status symbol

No budget constraints Improved standard of living

Productivity(saves time and

efforts) 3

Brand

Quality

What

attributes

do you

associate

with

experienti

al

products?

Luxury 3 Entertainment,Leisure

relaxation Price 2

Needs/Demands Need

Technological

upgradation Profession

Budget is low Utility

Brand name 2

Brand Association-Pride

All in one usage

Uniqueness/Differentiatio

n

Way of showing off

Brand Personality 2

Customer Feedback

After sales service


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FGD -3

(15:23 mins)

FGD -4

(25:19 mins)

QUESTION RESPONSES

FREQUEN

CY RESPONSES

FREQUEN

CY

What

purpose do

you use

technologi

cal

products

for?

Technology

Convenience(ease of use,

portability, makes life easy, user-

friendly) 8

Entertainment Comfort 2

Convenience(ease of

use) 3

Productivity(efficiency &

effectiveness) 2

Productivity(efficienc

y) Luxury 3

Status quo 2

Tech-savvy, Gadget freaks

Addiction 2

Necessity

Technological Need 4

Innovation 2

What

factors

compell

you to buy

such

product?

Quality 4 Features of the product 4

Brand 4 Style

Needs Price 2

Utility(Day-to-day

usage) 2 Brand

After sales service Need 4

Comfort 2 Value for money 4

Proffesion Snob effect

Convenience(ease of

use) 2 Demonstration effect

Leisure Technological need 3

Status symbol Feedback from customers

Price Convergence

Value for money After sales service

Sales person

Peer PressureWord-of-mouth

What

attributes

do you

associate

Quality 3 Utility(High Involvement product) 3

Brand 2 Needs 2

Utility(Day-to-day 2 Quality 3


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with

functional

products?

usage)

After sales service 2 Share of wallet 2

Complexity 2

Income 2

Necessity

Adaptability

Duration/Longevity

Guarantee/Warranty

Status quo

Price

Whatattributes

do you

associate

with

experientia

l products?

Price 2

Utility(Less Involvement

product)

Quality 2 Share-of-wallet(High) 2

Affiliation Quality 4

Style 2 Complexity

Multiple uses Guarantee/Warranty

Income 2

Luxurious, Lifestyle

Status quo

Price


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QUESTIONNAIRE

Objective:-The factors which affect the affect the buying behavior of a Functional/ Utilitarian

Product.

Objective: -The factors which affect the affect the buying behavior of an Experiential/

Hedonistic Product.

Name: Age:

Place: Gender: M/F

Functional / UtilitarianProducts

A Functional / Utilitarian product is a product which gives utility or functionality to a consumer. These

products have an instrumental or practical orientation. A Landline Phone (it caters to the

communication need) and server computer (it caters to collecting and storing data from distant

computer to a single repository) can be examples of functional products.

Q.1 Name some examples of functional products.

1. 4.

2. 5.

3.

Q.2 Could you mention some reasons for using these products?

1. 4.

2. 5.3.

Q.3 How often do you purchase functional products?

1. At least once in a month.

2. At least once in a quarter (3 months).

3. At least once in six months.

4. At least once in a year.

5. At least once in More than a year.

Q.4 How often do you search for functional products at various channels of Communication

(Newspapers, Magazines, TV Ads, Internet etc)?

1. Never

2. Seldom

3. Sometimes

4. Regularly


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Q.5 Do you think functional products are required in your life?

Yes

No

Q.6 If yes, can you mention five reasons why you require / need these products? Considering

first being the most important.

1. 4.

2. 5.

3.

Q.7 Following are some attributes which you consider before buying or choosing a particular

functional product. Rate the attributes given below from 1 -7 (1 being least important and 7

being most important).

Least Important Most important

1. Personal Need/Requirement 1 2 3 4 5 6 7

2. Utility / Functionality 1 2 3 4 5 6 7

3. Reliability 1 2 3 4 5 6 7

4. Quality 1 2 3 4 5 6 7

5. Dependability on the product 1 2 3 4 5 6 7

6. Convenience 1 2 3 4 5 6 7

7. Productivity 1 2 3 4 5 6 7

8. Innovation 1 2 3 4 5 6 7

9. Technological Change 1 2 3 4 5 6 7

Q.8 How much importance do you give to QUALITYof a Functional product? Rate the following

attributes while judging the quality of the product on a scale of 1 -7 (1 being least important

and 7 being most important).


1. Life of product 1 2 3 4 5 6 7

2. Guarantee 1 2 3 4 5 6 7

3. Warranty 1 2 3 4 5 6 7

4. After Sales Service 1 2 3 4 5 6 7


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Q. 9 How much CONVENIENCE does a Functional product provide you? Rate the following

attributes while judging the level of convenience on a scale of 1 -7 (1 being least important and

7 being most important).


Ease of Use 1 2 3 4 5 6 7Portability 1 2 3 4 5 6 7

User-Friendly 1 2 3 4 5 6 7

Q.10 How much PRODUCTIVE is a Functional product? Rate the following attributes while

judging the level of productivity on a scale of 1 -7 (1 being least important and 7 being most

important).


Efficiency 1 2 3 4 5 6 7

Effectiveness 1 2 3 4 5 6 7

Accuracy 1 2 3 4 5 6 7

Q.11 While buying or choosing a particular functional product, which factor influences your

purchase decision?

1. Value (utility, functionality, productivity & quality)

2. Price

Q.12 How do you choose a particular PRICE LEVELfor a Functional product? Rate the following

attributes while judging the level of price on a scale of 1 -7 (1 being least important and 7 being

most important).


Income 1 2 3 4 5 6 7

Share of wallet (Budget) 1 2 3 4 5 6 7

Snob Effect 1 2 3 4 5 6 7

Demonstration Effect 1 2 3 4 5 6 7

Q.13 Does my LIFESTYLEaffect my purchasing decision of a functional product?

1. Yes

2. No


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Q.14 If yes, rate the following lifestyle attributes affect your purchasing decision for a functional

product? Rate the following attributes while judging the level of price on a scale of 1 -7 (1 being

least important and 7 being most important).


Brand 1 2 3 4 5 6 7My Profession 1 2 3 4 5 6 7

Society/Peer 1 2 3 4 5 6 7

Aspirations 1 2 3 4 5 6 7

Experiential/Hedonistic Products

Those products which consumers choose, buy and use solely for experience, enjoyment,

relaxation and entertainment. The key for understanding experiential products consumption

are the hedonic and aesthetic aspects of the product. These products have pleasure and

excitement orientation. A MP3 Player and a video game console are few examples of

experiential products.

Q.15 Do you think experiential products are required in your life?

1. Yes

2. No

Q.16 If yes, can you mention five reasons why you require / need these products? Considering

first being the most important.

1. 3. 5.

2. 4.

Q.17 Following are some attributes which you consider before buying or choosing a particular

experiential product. Rate the attributes given below from 1 -7 (1 being least important and 7

being most important).


1. Personal Need/Requirement 1 2 3 4 5 6 7

2. Experience 1 2 3 4 5 6 7

3. Product Features 1 2 3 4 5 6 7

3. Quality 1 2 3 4 5 6 7

4. Uniqueness / Innovation 1 2 3 4 5 6 7

5. Style Quotient 1 2 3 4 5 6 7

6. Lifestyle 1 2 3 4 5 6 7

7. Technological Change 1 2 3 4 5 6 7


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Q.18 How much importance do you give to QUALITY of an Experiential product? Rate the

following attributes while judging the quality of the product on a scale of 1 -7 (1 being least

important and 7 being most important).


1. Brand 1 2 3 4 5 6 72. Guarantee 1 2 3 4 5 6 7

3. Warranty 1 2 3 4 5 6 7

4. After sales service 1 2 3 4 5 6 7

Q.19 While buying or choosing a particular experiential product, which factor influences your

purchase decision?

1. Experience Value (Entertainment, Enjoyment, Relaxation, Pleasure)

2. Price

Q.20 How do you choose a particular PRICE LEVELfor a Experiential product? Rate the following

attributes while judging the level of price on a scale of 1 -7 (1 being least important and 7 being

most important).


1. Income 1 2 3 4 5 6 7

2. Share of wallet (Budget) 1 2 3 4 5 6 7

3. Snob Effect 1 2 3 4 5 6 7

Q.21 Does my LIFESTYLEaffect my purchasing decision of an experiential product?

1. Yes

2. No

Q.22 If yes, rate the following LIFESTYLEattributes that affect your purchasing decision for a

experiential product? Rate the following attributes while judging the level of price on a scale of

1 -7 (1 being least important and 7 being most important).


Brand Image 1 2 3 4 5 6 7

My Profession 1 2 3 4 5 6 7

Society/Peer 1 2 3 4 5 6 7

Aspirations 1 2 3 4 5 6 7

Q23. Do you think that BRAND is an important determinant for my purchasing decision of an

experiential product?

1. Yes2. No


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Q24. If Yes, rate the following BRAND attributes that affect your purchasing decision for a

experiential product on a scale of 1 -7 (1 being least important and 7 being most important).


Association with Brand 1 2 3 4 5 6 7Image of Brand perceived by consumer 1 2 3 4 5 6 7

Brand Personality 1 2 3 4 5 6 7

Awareness of Brand 1 2 3 4 5 6 7

Q25. How rate do the products given below in terms of their INVOVLEMENT OF A CUSTOMER

before purchasing them on a scale of 1 -7 (1 being lowest and 7 being highest)?

LOWEST HIGHEST

1. FUNCTIONAL PRODUCT 1 2 3 4 5 6 7

2. EXPERIENTIAL PRODUCT 1 2 3 4 5 6 7

Annual Income: Profession:

Thank You

Consumer Attitude Towards Product Convergence

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