Convergent products: What functionalities add more value to the base?

Convergence in the electronics sector has enabled the addition of disparate new functionalities to existing base products (e.g., adding mobile television to a cell phone or Internet access to a personal digital assistant). This research investigates the role of two factors-(1) the goal congruence between the added functionality and the base and (2) the nature of the base product (utilitarian versus hedonic)-on the evaluation of such convergent products (CPs). The author proposes that the evaluation of CPs with a utilitarian versus hedonic base is subject to an asymmetric additivity effect. Specifically, whereas CPs with a utilitarian base gain more from adding an incongruent, hedonic functionality than a congruent, utilitarian one, CPs with a hedonic base gain less from an incongruent, utilitarian addition than a congruent, hedonic one. This asymmetry is because hedonic additions enhance the pleasure of using a utilitarian base, whereas utilitarian additions may dilute the existing hedonic image of a hedonic base. The moderating role of prior ownership of the base of a CP is also explored. The author proposes that the effects of goal congruence are stronger for owners than for nonowners, but only for CPs with a hedonic base, not for those with a utilitarian base. The author verifies the proposed effects in an experimental study conducted with a large-scale, representative sample of the target market population. Further research on other (moderating) factors affecting the evaluation of CPs is also suggested.