Product Types and Consumers’ Culture: An Empirical Examination in Taiwan

Firms must understand consumer culture to design and develop products that meet consumer expectations. When provided with various innovative consumer electronics, consumers make purchase or replacement decisions by referring to their experiences with an existing product, the effects of mental accounting induced by such products, the features of new products, and the marginal benefits from purchasing a new product in the Taiwan market.Survey and statistical analyses of a sample of consumer electronics products (i.e., smartphones and notebooks) produced the following results: First, when faced with multiple new product choices, consumers make different replacement and purchase (RP) decisions. Consumers are more likely to choose products with general enhancements than products with focused enhancements when provided with both options. However, when consumers decide whether to purchase products with alignable enhancements or those with nonalignable enhancements, their choice depends on the product type. Second, regardless of the type of new products that enterprises release, consumers perceive a larger difference in expected future enjoyment (DEFE) between existing and new products, higher mental book value (MBV) and higher RP intentions when enterprises withdraw old-generation products while launching new-generation products.



Author Information
Yen Hsu, Tatung University, Taiwan

Paper Information
Conference: ACAH2018
Stream: Humanities - Aesthetics, Design

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