Consumers’ preferences for the attributes of post-PC: results of a contingent ranking study

Abstract

With the explosive growth of the internet and the change in consumer demand, post-PC is emerging as a substitute for the existing desktop PC and laptop PC. post-PC is a new computer which is portable with wireless networking, cheaper than the existing PC and specializing in the specific functions that consumers want. Rudimentary post-PCs such as PDA, web-pad and smart-phone are already in use. In the future, owing to technological progress, the heterogeneity of related companies and the low entry barrier, various post-PCs will be developed. This paper attempts to analyse consumers’ willingness-to-pay (WTP) for post-PC with such attributes as portability, CPU speed, data input method (using key board or electric pen), monitor size, and price. To this end, a contingent ranking method is applied, which makes the respondents rank hypothetical post-PC alternatives featuring various combinations of attributes, via a survey data collected in Korea. Using the estimated WTP, the shape and the capacity of future post-PC are predicted and policy implications drawn for national- and company-level R&D strategies.

Notes

¹1.0 GBP was approximately equal to 2,050 KRW in February 2004.

² This procedure involves randomly drawing a large number (N=5000) of parameter vector estimates from a multivariate normal distribution with mean and variance equal to the coefficient vector and variance-covariance matrix from the estimated multinomial logit model and omitting 2.5% of the observations from the both tails.