Consumer preferences for forthcoming innovations: the case of high definition television

Abstract

Examines consumer preferences for forthcoming technological innovations. Studies consumer response to different levels of technology over time. Looks at preferences for existing and intermediate technologies when future ones are expected. Focuses on technological consumer durables that are expected to evolve over time. The primary contributions of this research are: an understanding of how consumer preferences for a technology are affected by the time of adoption; an understanding of the value to consumers of obtaining different levels of a technology, at different points in time; and the utilization of parsimonious indices to assess consumer response to different levels of technology over time. An empirical examination is conducted for high definition television (HDTV). Using survey data, the study explores consumer preferences for HDTV, and for interim television technologies. Managerial implications to aid product design, and the timing of introduction of evolving technological innovations, are also discussed.