Abstract
The purpose of this study is to examine effects of consumer behaviour on innovation commercialization among fast food restaurants via the analysis of restaurant selection criteria in the Lithuanian fast food market. In today’s global economic competitive environment where innovation is becoming more important, companies need to successfully manage innovations in order to ensure their competitive advantage, exploit new markets and attract customers. There is extensive research in the area of innovation (for instance, Schumpeter, 1934; Drucker, 2002; Lundvall, 2004; Freeman, 1982; Alam and Perry, 2002; Berghman, 2008; Ottenbacher, 2007, 2008 and etc.); however, the literature on the impact of consumer behaviour on commercialization of innovation is not well-established. The paper is innovative and relevant due to the selected fast food industry for analysis. It addresses the question: how does consumer behaviour contribute to innovation processes in the fast food industry and what are the ways to optimize the innovation performance, based on consumer needs? Fast food could be considered as an innovation itself. Nowadays it is not enough to just provide a fast food. Companies need to innovate in order to attract new customers – there is a new trend of healthy fast food, where requirements for fast food companies are very high. The present paper overviews and compares the academic literature on innovation, various classifications of innovation types and innovation process. It also presents the specific trends and issues of the EU system of innovation, choosing the Lithuanian case due to its sensitivity to transformation and rapid improvements, and only then it evolves into a quantitative survey-based study on fast food; restaurant selection criteria.
Highlights
The academic literature outlines many definitions of innovation, but in general innovation is an unavoidable process of applying new products, ideas or business processes to companies’ activities in order to create greater value in a final offering and gain competitive advantage (Stock et al 2002)
Schumpeter relates definition of innovation to an introduction of a new or new-quality good; a new production method related with scientific discoveries; the opening of a new market, which has not been entered by a particular branch of manufacturing; the introduction of new supplies and raw materials and – new creation of organizational structure, for example, creation or braking up of a monopoly position (Schumpeter 1934)
The study is centred on quantitative analysis, focused on finding out what innovations are the most attractive to Lithuanian customers while selecting a fast food restaurant, and what companies should do in order to increase profit
Summary
The academic literature outlines many definitions of innovation, but in general innovation is an unavoidable process of applying new products, ideas or business processes to companies’ activities in order to create greater value in a final offering and gain competitive advantage (Stock et al 2002). Schumpeter relates definition of innovation to an introduction of a new or new-quality good (yet unfamiliar for customers); a new production method related with scientific discoveries; the opening of a new market, which has not been entered by a particular branch of manufacturing; the introduction of new supplies and raw materials and – new creation of organizational structure, for example, creation or braking up of a monopoly position (Schumpeter 1934). This well-known theoretician argued that everybody who expected to gain a competitive advantage and made a profit faced innovation. It is a center of economic change, driven by innovation and the essence of capitalism’
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