Cue Utilization and Consumer Choice in Software Product Context: A Controlled Choice Experiment

Irfan E. Kanat, Raghu Santanam, Ajay S. Vinzé

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

Consumers face a plethora of product alternatives in software markets that places considerable cognitive burden in choosing the right alternative that best meets their needs. In this research, we aim to investigate how product cues associated with software products may affect consumer choice and whether market context moderates this effect. To address this research question we conducted a discrete choice experiment and analyzed the results with mixed multinomial regression. Our results indicate that externality enhancing features, open source and free products are favored by participants in choice decisions. We also found that the more expensive products were viewed more positively by participants than cheaper products. Externality features by far had the greatest effect on consumer choice. Users prefer a more functional feature with a closed source license to a less functional product with an open source license. Our analysis also points to the existence of considerable heterogeneity in preferences that is conducive to strategic positioning and product versioning in software markets.
Original languageEnglish
Publication date2014
Publication statusPublished - 2014
Externally publishedYes
Event24th Workshop on Information Technology and Systems: Value Creation from Innovative Technologies - University of Auckland Business School, Auckland, New Zealand
Duration: 17 Dec 201419 Dec 2014
Conference number: 24
http://wits2014.isom.auckland.ac.nz/Home.html

Workshop

Workshop24th Workshop on Information Technology and Systems
Number24
LocationUniversity of Auckland Business School
CountryNew Zealand
CityAuckland
Period17/12/201419/12/2014
Internet address

Bibliographical note

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Keywords

  • Cue utilization theory
  • Discrete choice experiment
  • Mixed multinomial logit
  • Software licenses

Cite this

Kanat, I. E., Santanam, R., & Vinzé, A. S. (2014). Cue Utilization and Consumer Choice in Software Product Context: A Controlled Choice Experiment. Paper presented at 24th Workshop on Information Technology and Systems, Auckland, New Zealand.