Radical Brand Extensions and Consumer Profile – A New Perspective on Innovation and Consumer Innovativeness

Abstract

When creating a radical new brand extension, marketers must carefully consider their branding and marketing strategies in order to capitalize the competitive advantage gained by innovation. Because innovation can be achieved in a multitude of ways, it is important to understand how consumers think and react regarding a new product that possesses a high degree of innovation. Traditionally, when a new product is launched, companies will Asses consumer innovativeness by creating specific customer profiles. These profiles take into account intrinsic and extrinsic factors that influence consumer behaviour regarding radical brand extensions. The purpose of this article is to propose a new approach on the way this profiles should be built. The authors will debate if the traditional view on consumer innovativeness is obsolete and propose an alternative based on consumer risk profiles. Based on a detailed conceptual analysis this article develops the framework of a research methodology for measuring consumer innovativeness and consumer risk aversion when facing the dilemma of accepting a radical new product.