Effects of consumer preferences on the convergence of mobile telecommunications devices

• Published in: Applied economics Vol. 37; no. 7; pp. 817 - 826
• Main Authors: Kim, Yeonbae, Lee, Jeong-Dong, Koh, Daeyoung
• Format: Journal Article
• Language: English
• Published: London Taylor & Francis Group 20.04.2005; Taylor and Francis Journals; Taylor & Francis Ltd
• Series: Applied Economics
• Subjects: Applied economics; Bayesian analysis; Bayesian method; Business studies; Consumer behavior; Consumer preferences; Consumers; Convergence; Data analysis; Empirical research; Information technology; Studies; Telecommunications industry; Wireless communications
• ISSN: 0003-6846; 1466-4283
• DOI: 10.1080/0003684042000337398

Amidst the overall trend of convergence in information technology, device convergence is noteworthy. This study looks at the possible direction of device convergence based on consumer preferences for the main attributes of the mobile terminal of the future. Conjoint analysis and a mixed logit model using a Bayesian approach with Gibbs sampling are used to learn consumer preferences. Results show that consumers generally prefer a keyboard and a medium-sized display, although at present most consumers are indifferent to whether the terminal provides high-quality Internet service and to whether it operates many kinds of application programs or programs originally designed for personal computers. Given the heterogeneity of consumer preferences, partial, rather than perfect, device convergence is anticipated. Implications for the future of device convergence and how it will affect other types of convergence are drawn.