Effects of Technological Convergence and Brand Extended Strategies on Product Value: Case on the Added Functionalities of Online Games

Rebecca Huey-Ming Yen (), Rebecca Shu-Yu Yeh () and Kun-Yu Hung ()
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Rebecca Huey-Ming Yen: Ming Chuan University, Taiwan
Rebecca Shu-Yu Yeh: Ming Chuan University, Taiwan
Kun-Yu Hung: Ming Chuan University, Taiwan

Eurasian Journal of Social Sciences, 2019, vol. 7, issue 3, 8-22

Abstract: Through three quasi-experimental studies with extensive data pertaining to online games, this article explores the effect of an added functionality brand strategy on evaluations of a new product. Customer evaluations improve when the advanced functionality of a new product results from the contribution of a successful, solo-branded product rather than a failed or unbranded one. Successful solo-branded and unbranded functionalities also contribute to the value of converged new products. Evaluations are more favorable when the advanced functionality reflects a cobranding strategy for a converged version of the new product; the opposite effect holds for solo branding and dedicated versions. These results contribute to research into network effects, new products, and brand strategies, as well as offering recommendations for practice.

Keywords: Brand Strategy; Online Game; Technology Convergence; Product Extension; Added Functionalities (search for similar items in EconPapers)
Date: 2019
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