Abstract
Consumer innovativeness is an important driver of economic progress and a country’s position in global competition. This study aims to examine the moderating effect of demographic factors of Indonesian consumers on the impact of consumer innovativeness on perceived risk and new product adoption. The type of research chosen is a causal comparative study by using online and offline survey methods. Data were obtained from a sample of 1,000 consumers from 31 provinces. The results showed that the demographic variable became a moderating variable for the impact of consumer innovativeness on new product adoption, but did not play a role in the influence of consumer innovativeness on credit-purchase risk perception. With regard to the influence of consumer innovativeness on credit-purchase risk perception, only social class has a significant effect as a moderating variable. As for the effect of consumer innovativeness on a new product adoption, the variables of marital status, occupation, income, and social class have significant effects. The social class variable consistently becomes a moderating one in both equations. The results of this study are useful for marketers to focus more specifically on their target markets, especially on the diffusion of new product innovations based on demographic characteristics. AcknowledgmentPDUPT Research Grant by Ministry of Research and Technology of The Republic of Indonesia, 2019.
Highlights
The results showed that the demographic variable became a moderating variable for the impact of consumer innovativeness on new product adoption, but did not play a role in the influence of consumer innovativeness on credit-purchase risk perception
When testing the direct effect, consumer innovativeness, occupation, education, ethnicity, and social class have a positive and significant effect, while gender has a negative effect on perception on credit-purchase risk
The test results show that the demographic variables that have a significant direct effect on new product adoption before moderating interactions are age, education, ethnicity, and social class
Summary
Elliehausen (2010), Blanc et al (2015) and Chavali and Mohanraj (2016) examined the impact of demographic factors on perceptions of making credit purchases and linked it to consumer innovativeness and new product adoption. Generation Z in Indonesia has a consumptive nature, spontaneous in spending money, and shopping online (Simangunsong, 2018) and always follow technological changes (Salim et al, 2019) This generation is a creative and connected generation, marked by the character of innovative consumers, which is characterized by internet addiction, using smartphones and thin wallets/cashless money (Alvara Strategic Research, 2019). Firmansyah (2016) has shown that consumer innovativeness and financial risk tolerance significantly influence consumer’s intention to adopt a payment card They did not examine the effect of consumer innovativeness on perception on credit-purchase risk and new product adoption and did not relate it to the role of demographic factors. Innovators have an influence on the success and failure of new products related to the diffusion level of their innovation (Dobre et al, 2009)
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