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A study on personal computers sold in G7 countries, during 1995-1999, is presented. The impact of demand for personal computers on prices of operating systems is examined.

Prior research suggests that brand may influence consumer preference for differentiated products. However, the extant literature does not measure how brand value affects product similarity and consumer choice. This paper examines demand response to the proliferation of personal computers (PCs). Using both the central processing unit (CPU) and brand as segmentation variables, I construct a two-level nested generalized extreme value (GEV) discrete choice model to estimate the brand values and product similarities of a set of PC vendors. With these estimates, I infer the relative efficacy of product variety for firms which possess different degrees of brand values. My results suggest that consumers treat PCs from the same firm as close substitutes, and the proximity of the PCs correlates positively with the firms' brand values. This finding suggests that there are decreasing demand returns to product variety for branded multiproduct firms. I discuss a few possible drivers of brand value and explore the significance of product line extension in building long-term brand reputation. Key words: product variety; brand value; discrete choice; similarity; cannibalization, 1. Introduction Many durable goods manufacturers engage in extensive product proliferation to capture demand from multiple consumer segments. For example, Hyundai produces the XG premium sedan for luxury-car consumers, the [...]

The persuasive effectiveness of message sidedness (one versus two-sided messages) and message structure was assessed in the context of a personal selling appeal for a new home computer to an unfamiliar target audience. Contrary to some prior research, two-sided appeals were found to be less, not more, effective in promoting seller credibility and message acceptance than one-sided appeals. To some extent, however, this effect was attenuated by placing unfavorable product arguments at the end rather than the beginning of the selling appeal. To account for these findings, a disarming effect is proposed. People who have little or no knowledge regarding a seller's particular offering tend to be disarmed by two-sided appeals. As a result, they discount the seller's product-related knowledge. This effect is thought to be more pronounced when the unfavorable information is presented at the beginning of the message. (Reprinted by permission of the publisher.)

A three-equation simultaneous system that captures both the determinants and market outcomes of a firm's product line decisions is presented. Market share, product line length equations and price, calculated by three stage least squares were the factors considered for analyzing the personal computer industry from 1981 to 1992. Results reveal that proliferation decisions provide supply and demand implications and that the firm-level net market share impact of product proliferation in the personal computer industry is negative., Abstract Considering the number of new product introductions and available product varieties today, the practice of product proliferation is visibly evident in many diverse industries. Given its prevalence in practice, [...]

Deflators for Purchases of Computers in GNP: Revised and Extended Estimates, 1983-88 In 1985, BEA introduced quality-adjusted deflators for purchases of computers in GNP for 1969-84.(1) Purchases in GNP consist […]