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The Effect of Adding New Features of IT Product on Product Evaluation by Moderating of Regulatory Focus: Focus on Value Inference and Learning Cost Inference

Abstract

As technology advances, it becomes more feasible to load products with a number of features, each of which individually might be perceived as useful. Each additional new feature may add desired capabilities, but many features can make a product overwhelming for consumers and difficult to use. Therefore, this study focuses on how adding new features affect on perceived of usability, product capability, and product evaluations with regulatory focus. The purposes of the study are as follows. First, we explore the effects of numbers of new features on two distinct product dimensions, the perceived product capability and the perceived usability of the product. Second, we test how consumers’ self-regulation (prevention vs. promotion focus) affects the evaluation of functionality (or capability) and usability as new features increase. Finally, we test if prevention focused consumers would differ in the effects of capability and usability in consumers’ product evaluation, compared with promotion focused consumers. Our study comprise 140 MBA Students who we randomly assigned to conditions. The study has a 2 (numbers of feature: low/high) x 2 (regulatory focus: prevention/ promotion) between subject factorial design. We manipulate regulatory focus and number of features between subjects. Participants rate their perceptions of each model's capability and usability and then provide an overall evaluation of each model. The results show that there are no main effects of numbers of new features on capability and usability. However, there are differences in capability and usability between prevention focused and promotion focused consumers as new features increase. In other words, usability, capability, and an overall evaluation of each product was higher for prevention- focused consumers than for promotion focused consumers when the number of new feature is low. Furthermore, there are differences between prevention focused consumers and promotion focused consumers in the effects of usability and capability on their product evaluations, indicating that while prevention focused consumer give more weight to usability in their product evaluations, promotion focused consumers do not give more weight to usability or capability. Based on the findings, the theoretical and managerial implication are then discussed.

keywords
usability, capability, functionability, regulatory focus, product evaluation, high-tech product, number of feature

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