What’s in a name? The impact of subcategory salience on value perception and upgrade intention for multicategory products
Published online on September 27, 2018
Abstract
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- "\nAbstract\nDespite many convergence products rapidly approaching market saturation,
academic research yet lags behind with the focus still on the primary demand in
the introduction stage. The authors close this gap by focusing on how the labeling
of convergence products may impact on value perception and upgrade intentions for
these products. Convergence products, which combine multiple categories of products
into a single device, create a unique naming dilemma for manufacturers and retailers:
Whether to opt for (a) a subordinate label—a lower‐level descriptor or name that
embodies its subcategory elements (e.g., smartphone or Apple’s iPhone) or (b) a
\nsuperordinate label—a higher‐level descriptor or name which transcends its subcategories
(e.g., multifunctional device or Samsung’s Galaxy). The authors investigate the
effects of labeling choices (i.e., subordinate vs. superordinate) on consumer value
perception and upgrade intention. Results of four studies demonstrate that the labeling
options exert differential effects on perceived value and upgrade intention, while
the use of subordinate (vs. superordinate) label lowers the present perceived value,
it raises consumer’s intention to upgrade to a newer‐generation product.\n"
- Psychology & Marketing, EarlyView.