The effect of adding features on product attractiveness: the role of product perceived congruity

Technological progress has been enabling companies to add disparate features to their existing products. This research investigates the effect of adding more features on consumers’ evaluation of the product, by examining in particular the role of the congruity of the features added with the base product as a variable the moderates the effect of increasing the number of features. Grounding on schema-congruity theory, I propose that the cognitive elaboration associated with the product congruity of the features added explains consumers’ evaluation as the number of new features increases. In particular, it is shown that consumers perceive a benefit from increasing the number of features only when these features are congruent with the product. The underlying mechanisms that explains this finding predicts that when the number of incongruent features increases the cognitive resources necessary to elaborate such incongruities increase and consumers are not willing to spend such resources. However, I further show that when encouraged to consider the new features thoughtfully, consumers do seem able to infer value from increasing the number of moderately incongruent features. Nonetheless, this finding does not apply for those new features that are extremely incongruent with the product. Further evidence for consumers’ ability to resolve the moderate incongruity associated with adding more features is also shown, by studying the moderating role of temporal construal. I propose that consumers perceive an increase in product evaluation as the number of moderately incongruent features increases when consumers consider purchasing the product in the distant future, whereas such an increase is not predicted for the near future scenario. I verify these effect in three experimental studies. Theoretical and managerial implications, and possible avenues of future research are also suggested.

Strategy as a matter of beliefs: the recorded music industry reinventing itself by rethinking itself

Managerial and organizational cognition studies the ways cognitions of managers in groups, organizations and industries shape their strategies and actions. Cognitions refer to simplified representations of managers’ internal and external environments, necessary to cope with the rich, ambiguous information requirements that characterize strategy making. Despite the important achievements in the field, many unresolved puzzles remain as to this process, particular as to the cognitive factors that condition actors in framing a response to a discontinuity, how actors can change their models in the face of a discontinuity, and the reciprocal relation between cognition and action. I leverage on the recent case of the recorded music industry in the face of the digital technology to study these issues, through a strategy-oriented study of the way early response to the discontinuity was constructed and of the subsequent evolution of this response. Through a longitudinal historical and cognitive analysis of actions and cognitions at both the industry and firm-level during the period in which the response took place (1999-2010), I gain important insights on the way historical beliefs in the industry shaped early response to the digital disruption, on the role of outsiders in promoting change through renewed vision about important issues, and on the reciprocal relationship between cognitive and strategic change.