Assessing market structure and company fit based on consumer perceptions in dynamic information technology markets

Convergence between computing, home entertainment, and telecommunications has become a technologically driven reality during the nineties. However, little attention has been paid to how consumers will evaluate products resulting from the combination of these industries. Ultimately, it is consumer choice that will drive the economic success of companies participating in these markets and a precursor to that choice is high perceived utility. Utility in turn is determined by consumer beliefs about product attributes. This paper examines consumer perceptions of various existing electronic information product categories and calibrates preference for manufacturers that compete within them. It shows how manufacturers can be represented in the same perceptual space as categories, and it estimates the preference drivers of both product categories and suppliers overall, as well as supplier performance in specific categories. Analysis of the existing market provides a platform from which to examine how consumers will evaluate new categories. In particular, we examine the convergence of television sets and personal computers, and estimate how well different suppliers are positioned to take advantage of this evolving market, including strategic alliances between similar and diverse manufacturers.