Consumer Associative Network Analysis on Device and Service Convergence

Abstract

Our research brings managerial insights for developing new digital convergence of devices and services. To explain the phenomenon of device and service convergence, we combine two different approaches from separate research fields: a perceptual mapping technique generally used for segmentation in marketing and associative network analysis mobilized to understanding network structure of core and peripheral as well as the information mediating role of nodes in network science. By combining these two approaches, we provide an in-depth analysis of the associations among devices and services by assessing the centrality of device and service nodes in an associative network. This is done by examining the connections between these services and devices as well as investigating the role of mediation in the combined device-service associative network. Our results based on bi-partite network analysis of survey responses from 250 Internet Protocol (IP) television viewers show which device and which service will play the major role in future device and service convergence as well as which characteristics and functionalities have to be incorporated into future convergence. Among the devices, the mobile handset with the betweenness centrality of 0.26 appears to be the device that would lead future device convergence. Among the services, wireless broadband with the betweenness centrality of 0.276 appears to be the service on which future service convergence needs to be developed. This result is quite unexpected, since wireless broadband has a lower penetration rate than other services, such as fixed broadband and cable TV. In addition, we indicate the possibility of converging devices, such as personal digital assistant (PDA) and mobile handset, and services, such as IPTV and mobile Internet, into wireless broadband services in the future.