Willingness to pay for innovations

Abstract

Purpose Whereas the impact of national culture on consumer innovativeness is widely discussed in the innovation literature, studies are scarce on consumer value and the related consumer willingness to pay (WTP) for innovations. Yet, innovative high-tech companies compete by enhancing their products with new attributes, and assessing consumer WTP for these innovative attributes in different countries is crucial to adapting the launching price and optimizing profits during the critical launch stage. To fill this gap, the purpose of this paper is to examine the impact of national culture and globalization on consumer value and the related WTP for technological innovations. Design/methodology/approach Data were collected in two culturally distinct but economically similar countries (France and Germany), using large representative and comparable consumer samples (n=642). Choice-based conjoint analysis was used as the principal method of data analysis. Findings This study reveals the significant impact of national culture on consumer value and the related WTP for technological innovations and the moderating effect of household income on this relationship. Originality/value This study is the first to reveal and provide strong empirical evidence of the impact of national culture on WTP for innovations. In addition, this study is the first to reveal the moderating effect of income on this relationship and to highlight an emerging European innovation adoption behavior.