Consumer Adoption Process Research Articles

How do the perception of the technological and symbolic dimensions and the social context affect the green consumer adoption process of eco‐innovations?

AbstractEnvironmental challenges have led to a shift toward more sustainable consumption and production patterns. Understanding the factors that influence consumers' choices toward green products is crucial for achieving sustainable development. This study investigates the adoption process of a low‐involvement eco‐innovation, examining the influence of the level of green consumerism, the perception of its technological and symbolic dimensions, social pressure, and social conspicuousness. A sample of 268 observations was examined using the PLS‐SEM methodology. The results highlightthe indirect effect of the level of green consumption on low‐involvement eco‐innovation adoption through the perception of its technological and symbolic dimensions, as well as social pressure and social conspicuousness. These findings have important practical implications for the design of marketing strategies aimed at promoting low‐involvement eco‐innovations. By emphasizing the social benefits and the influence of others on adopting green behaviors, marketers can effectively target consumers and facilitate the transition toward more sustainable consumption patterns.

INNOVATION ADOPTION PROCESS IN CREATING CUSTOMER VALUE PT.PLN

The consumer adoption process is a process in which consumers assimilate information, use it, and verify what has been done. The many innovations implemented in the PT. PLN company will certainly have an impact that has value in front of customers. In carrying out the process of consumer adoption of schemes or innovations imposed by PT. PLN. With the innovation carried out by PLN, namely the use of the PLN mobile application, will there be a problem between the previous habit becoming a new habit, of course PLN customers must get used to adapting to this habit. This research certainly wants knowledge between the researchers' assumptions namely product quality, product design and product benefits in the adoption process of the PLN influencing customer assessment. Correlational Research Methods where researchers change qualitative data into quantitative data by using primary data and using the slovin method as a sample data selection. The analysis technique using structural equation modeling rather obtains accurate hypothesis results and uses validity and reliability tests using variance extract and construct reliability. As well as this research confirms the model suitability test by using the Goodness of fit test and finally the researcher gets the results of the regression weight for the results of determining the hypothesis. The results obtained by the researchers in this study were that product quality had a significant and positive effect on customer ratings, while product design had no significant relationship with customer ratings and product benefits/usages also had no significant relationship at all with PLN product ratings.

Digital currency and payment innovation in the hospitality and tourism industry

This paper examined the acceptance of central bank digital currency (CBDC) as a payment method in the hospitality and tourism sectors. The characteristics of CBDC payment were discussed and the five-stage consumer adoption model served as a framework for advancing our knowledge about individuals’ adoption process of payment innovation. In addition, this study involved consumer innovativeness as a moderating factor in the formation of consumer adoption behavior. Based on 423 responses collected from self-administrated online survey, we conducted the structural equation modeling analysis and metric invariance test. The proposed model, which incorporates innovation characteristics and the consumer adoption process, properly predicted consumer acceptance toward CBDC payment in buying hospitality and tourism products. Furthermore, the identified moderating role of consumer innovativeness in the relationships, such as one between interest and evaluation, and the other between evaluation and trial intention promoted a better understanding of the consumer adoption behavior toward payment innovation.

The consumer’s perceptions and attitudes toward innovative foods in united arab emirates

The success of innovations in food industry mainly depends on consumers’ involvement in the process. Consumers’ trust on developed innovative food products or food production technologies can enhance acceptance/adaptation of them. Consumer acceptance of innovations in general, and technology-based food advances in particular, have been studied extensively. They cover a wide range of facets of the consumer adoption process, from awareness to actual adoption. However, there is a lack of a comprehensive and systematic overview that includes all potentially influential determinants. To fill this gap, we used a conceptual framework for consumer acceptance and adaptation of food innovations. The question needs to be answered is, how consumers perceive sustainable innovations in food products, the way the perception affects their perceived risk & uncertainty, perceived cost/benefit, and attitude strengths toward the innovations? A questionnaire was developed and implemented via stratified random sampling on 400 selected consumers in UAE consumers. Confirmatory factor analysis and a structural equation model (SEM) were used to analyze the general fit of the proposed model and test the developed hypotheses. According to the results the perception of sustainable food innovations is directly affected by some contextual factors (relative advantage, complexity, and observability) determined as product characteristics and mediates the relationship between those factors and consumer adaptation of the innovation which is affected by perceived cost/benefit, perceived risk & uncertainty, and attitudes

Peebuddy: ladies, it’s time to stand-up!

Supplementary materialsTeaching Note and Exhibits.Learning outcomesThe learning outcomes are as follows. The case offers a rare opportunity to understand the unique market dynamics of feminine health and hygiene products in an emerging market. The discussion would enable learners to comprehend different stages of “new product development process”; understand “diffusion of innovation” and consumer adoption process; conduct a comprehensive situation analysis to assess segment attractiveness; and plan market-driven “product commercialization” strategies to increase adoption and sales for long-term performance.Case overview/synopsisPeebuddy – “India’s first portable female urination device” that gave women the freedom to stand and pee in unfriendly toilets was launched in 2015. Over two million units were sold by December 2019. Riding on this success, Deep Bajaj – the creator of Peebuddy built a 20-product company from a small bootstrapped start-up, over a four-year period. After receiving two rounds of funding, Bajaj knew that for the next phase of expansion, he needed to showcase Peebuddy as the star product. Facing the challenge of getting over the chasm of limited adoption of an unconventional product in the intimate feminine hygiene and almost taboo space in an emerging market such as India, Bajaj was determined to retain the first mover advantage and emerge as the leader in the category. For this, he had to define his lead user distinctly and design appropriate strategies to increase consumer reach and sales that could overcome the challenges of cultural stereotypes.Complexity academic levelMBA-level courses in marketing management (core), consumer behavior and product management.Subject codeCSS 8: Marketing.

Customers' intentions to adopt proximity m-payment services: empirical evidence from Greece

The purpose of this study is to analyse the factors that determine consumers' intentions to adopt NFC proximity mobile payment services. An extended version of the decomposed theory of planned behaviour (DTPB), a model that incorporates the most relevant theoretical approaches in the mobile payment adoption literature was selected to investigate the consumer's adoption process. To empirically test the proposed model's nomological validity, data were collected from 513 consumers of mobile internet service providers in Greece and were analysed using PLS. The results indicated that consumers' attitude about the NFC proximity mobile payment services is the main driver of consumers' intentions to use it, followed by their normative, control and risk beliefs. As far as the behavioural intentions determinants' structure is concerned, consumer's perception about service attributes compatibility and performance (i.e., usefulness, easiness, and reduced riskiness), the availability of knowledge, resources, and opportunities necessary for using the service and the support of the interpersonal and the external social context toward the usage of the technology found to be adoption facilitators. Theoretical and managerial implications, limitations and suggestions for further research are provided at the end of the study.

Customers' intentions to adopt proximity m-payment services: empirical evidence from Greece

The purpose of this study is to analyse the factors that determine consumers' intentions to adopt NFC proximity mobile payment services. An extended version of the decomposed theory of planned behaviour (DTPB), a model that incorporates the most relevant theoretical approaches in the mobile payment adoption literature was selected to investigate the consumer's adoption process. To empirically test the proposed model's nomological validity, data were collected from 513 consumers of mobile internet service providers in Greece and were analysed using PLS. The results indicated that consumers' attitude about the NFC proximity mobile payment services is the main driver of consumers' intentions to use it, followed by their normative, control and risk beliefs. As far as the behavioural intentions determinants' structure is concerned, consumer's perception about service attributes compatibility and performance (i.e., usefulness, easiness, and reduced riskiness), the availability of knowledge, resources, and opportunities necessary for using the service and the support of the interpersonal and the external social context toward the usage of the technology found to be adoption facilitators. Theoretical and managerial implications, limitations and suggestions for further research are provided at the end of the study.

What’s energy management got to do with it? Exploring the role of energy management in the smart home adoption process

There are high hopes for smart home technology to deliver Home Energy Management (HEM) solutions, including through smart thermostats, plugs, lights, switches, and appliances. However, adoption of these technologies is lagging behind expectations. Moreover, it is unclear how energy management features in the smart home consumer adoption process. We know there is technical potential for the smart home to support energy management, but we know little about the degree to which energy benefits interest consumers and motivate them to adopt smart home technologies relative to non-energy benefits such as security, comfort, and convenience, which could have implications for increasing rather than decreasing energy consumption. To that point, we know little about whether and how the energy management functionalities of smart home products are actually used by adopters. The present research investigated consumers’ knowledge of, attitudes toward, and experiences with smart home technologies that have energy management functionalities (smart HEMS), in order to assess barriers to adoption and to achieving purported energy benefits. Specifically, we studied shoppers at smart home retailers to gauge their existing awareness of and attitudes toward smart HEMS, and we analyzed Amazon customer reviews of smart HEMS to better understand early adopters’ motivations and experiences. Results revealed challenges to achieving energy benefits with existing products and marketing strategies, and implications for shaping the future of these technologies to achieve energy demand reductions and load shifting capabilities at scale for the smart home and smart grid of the future.

Influence of Marketing on Consumer's Adoption of E-Banking

The financial system plays an extraordinary role in developing and enriching the domestic economy. E-banking service as an innovative software product and service for customers was introduced few years ago in the country from variety of national and international banks: ProCredit Bank, Raiffeissen Bank, Teb Bank, NLB Bank etc., enabling consumers to have access to their bank accounts over the internet. Since internet usage grows rapidly in the country even adoption of e-banking is expected to flourish. Behavior of customers toward adoption is explained using different behavioral model. The objective of this study is to analyze the consumer-adoption process toward e-banking. The survey is used in this respect, to find out the way they learn, try, and adopt or reject e-banking service. Furthermore, the hypothesis those females are significantly different from males on adoption of e-banking services, it prevails the null hypothesis that gender doesn’t affect adoption of e-banking services. The study reveals the characteristics of the consumers toward ebanking adoption process, such as differences in individual readiness to try new product; the information searching; advertisement and direct marketing influence; and speed rates of adoption and non adoption among genders.

Cloud Computing Technology Innovation Advances

This paper seeks to investigate the advances in the consumer adoption process of technological innovations in cloud computing services. The paper aims to focus on the increased role of cognitive computing and big data affecting adoption of emerging technologies. As more consumers worldwide are using mobile computing, the role of online advertising is examined to understand the marketing affects of cloud technology. This leads to a discussion about how the value of social capital to consumers adopting cloud computing technology, which highlights how consumers learn and interact with emerging technological innovations. To overcome the concerns about security and transparency of data stored on cloud computing servers, the role of cloud computing technology in alleviating consumer concerns is stated. The findings highlight the importance of changing the mindsets of consumers when using a technological innovation and the obstacles to the use of cloud computing technology. The paper describes the advances in cloud computing technology in connection to emerging innovations that can be of use to practitioners as well as researchers in the field.

Seeking the Ideal Level of Design Newness: Consumer Response to Radical and Incremental Product Design

To develop successful new products, new product development managers need to have a thorough understanding of the consumer adoption process, specifically in how consumers evaluate new products. This research examines the value of product design for consumers' evaluation of radical and incremental innovations. The primary goal was to empirically test how design newness affects consumer response to product innovations. Design newness (also referred to as novelty or atypicality) is defined as the deviation in a product design from the current design state of a certain product category. Although prior research has suggested that higher levels of design newness may have a positive effect on consumers' evaluations of new products, higher levels of design newness may also have negative consequences for consumer response to radical innovations.An experimental context (n = 130) using systematically designed products for three product categories was used to test how consumers respond to high and low levels of design newness for both radical and incremental innovations. The findings show that for radical innovations, embodying the product in a design with a low (versus high) level of design newness led to more positive evaluations and less learning‐cost inferences. Because the functional attributes of a radical innovation are incongruent to existing products, consumers find it difficult to access the relevant product category schema in order to transfer knowledge to the new product. Because of this poor knowledge transfer, consumers may feel that they lack the ability to make effective use of the radical innovation, resulting in greater learning costs. In this case, a product design with a low level of design newness can provide consumers with a frame of reference for understanding the radical innovation.Contrasting this result, no difference was found between a low and a high level of design newness for incremental innovations. For incremental innovations, by definition the functional attributes characteristic to the innovation are highly comparable with those products that are already stored in consumers' memory. Thus, there is no need for an additional reconfirmation of the preexisting schema through product design, and consumers are able to access the relevant schema regardless of the level of design newness inherent in the product. These findings are integrated into a discussion of the managerial implications and the potential avenues for future research.

Consumer adoption of technological innovations

PurposeThis study seeks to investigate barriers in the consumer adoption process of technological innovations under different contingencies. The paper aims to focus on barriers impeding adoption of technologies characterized by high incompatibility and high uncertainty – i.e. a “lack of content” (LoC) situation – versus technologies characterized by low incompatibility and low uncertainty – i.e. a “presence of content” (PoC) situation.Design/methodology/approachBased on a literature study, the paper develops hypotheses that distinguish the diverging effects of both psychological and functional barriers on consumer adoption in different situations (LoC versus PoC). Data were collected by means of a survey, resulting in an effective sample of 229 respondents.FindingsIn the case of LoC, the value, risk (financial and performance) and image barrier are negatively related to adoption intention, where the latter barrier is significantly stronger for the LoC situation than for the PoC situation. For PoC, it is found that the value, image, and financial risk barriers are negatively related to adoption intention, where the value barrier outweighs all other barriers. Interestingly, the traditional barrier reveals a positive effect on adoption intention.Practical implicationsThe results suggest that managers and retailers should develop a more sophisticated understanding of consumers' adoption intention of new technologies. Distinguishing between LoC and PoC situations offers managers the opportunity to differentiate their communication strategies and design more compelling ways for consumers to overcome the specific barriers they perceive in each situation.Originality/valueThe paper attempts to offer a more fine‐grained understanding of consumer adoption by investigating the extent to which the lack versus the presence of content gives rise to differences regarding the effects of psychological and functional barriers to technology adoption.

유행채택모형 연구

This research presents a fashion adoption process model based on collective selection theory and examines the differences in the consumer adoption process of merchandising types at each stage of the fashion cycle. A questionnaire survey of 472 adult women was conducted for the purpose of empirical analysis of the fashion adoption process. The results show that fashionability and popularity (the primary attributes of fashion goods) have direct effects on resistance and adoption as well as indirectly through social compatibility and personal compatibility in the evaluation stage. In conclusion, on the theoretical side, this study verified the fashion process model according to consumer participation in the adoption process of fashion goods existing at different stage of the fashion cycle, internally through negotiating with individual tastes, and externally through interacting with others. On the practical side, this study presented an empirical result that can apply to merchandizing strategy centered on merchandizing type by connecting consumer adoption for the fashion goods released by actual companies.

An Empirical Inquiry into New Subscriber Services under Interdependent Adoption Processes

This article estimates dynamic diffusion systems developed earlier by Mesak and Darrat (2002) for newsubscriber consumer services. Each system consists of two equations, one for the retailer adoption process and another for the consumer adoption process. Using diffusion annual data related to the cable TV industry in the United States, three alternative interactive systems based on the Bass (1969) model are estimated and contrasted in terms of their predictive power. The empirical results support a two-way diffusion system that includes price. The incorporation of price proves critical for the system’s predictive power. In addition, a noninteractive, two-simultaneous-equations model as well as a single-equation model fail to provide adequate representation of the data.

Optimal Pricing of New Subscriber Services under Interdependent Adoption Processes

This article develops and optimizes dynamic diffusion systems for new subscriber consumer services. Each proposed system is composed of two differential equations, one for the retailer adoption process and another for the consumer adoption process that incorporates price. Several of such systems are optimized using optimal control methods. Presence of interaction is found to significantly influence the qualitative characterization of pricing policies of new subscriber services. Furthermore, even when interaction is not present, the derived characterization of optimal pricing policies proved to be very different from those reported in the literature for new consumer durables.

Entrenched Knowledge Structures and Consumer Response to New Products

Although diffusion models have been successfully used to predict the adoption patterns of new products and technologies, little research has examined the psychological processes underlying the individual consumer's adoption decision. This research uses the knowledge transfer paradigm, studied often in the context of analogies, to demonstrate that both existing knowledge and innovation continuity are major factors influencing the consumer's adoption process. In two experiments, the authors demonstrate that the relationship between expertise and adoption is relatively complex. Specifically, their findings indicate that, compared with novices, experts report higher comprehension, more net benefits, and therefore higher preferences for continuous innovations. However, for discontinuous innovations, experts' entrenched knowledge is related to lower comprehension, fewer perceived net benefits, and lower preferences compared with that of novices. Only when this entrenched knowledge is accompanied by relevant information from a supplementary knowledge base are experts able to understand and appreciate discontinuous innovations. These findings have implications for segmentation, media planning, and the creation of product/brand loyalty.

MOVIEMOD: An Implementable Decision-Support System for Prerelease Market Evaluation of Motion Pictures

In spite of the high financial stakes involved in marketing new motion pictures, marketing science models have not been applied to the prerelease market evaluation of motion pictures. The motion picture industry poses some unique challenges. For example, the consumer adoption process for movies is very sensitive to word-of-mouth interactions, which are difficult to measure and predict before the movie has been released. In this article, we undertake the challenge to develop and implement MOVIEMOD—a prerelease market evaluation model for the motion picture industry. MOVIEMOD is designed to generate box-office forecasts and to support marketing decisions for a new movie after the movie has been produced (or when it is available in a rough cut) but before it has been released. Unlike other forecasting models for motion pictures, the calibration of MOVIEMOD does not require any actual sales data. Also, the data collection time for a product with a limited lifetime such as a movie should not take too long. For MOVIEMOD it takes only three hours in a “consumer clinic” to collect the data needed for the prediction of box-office sales and the evaluation of alternative marketing plans. The model is based on a behavioral representation of the consumer adoption process for movies as a macroflow process. The heart of MOVIEMOD is an interactive Markov chain model describing the macro-flow process. According to this model, at any point in time with respect to the movie under study, a consumer can be found in one of the following behavioral states: undecided, considerer, rejecter, positive spreader, negative spreader, and inactive. The progression of consumers through the behavioral states depends on a set of movie-specific factors that are related to the marketing mix, as well as on a set of more general behavioral factors that characterize the movie-going behavior in the population of interest. This interactive Markov chain model allows us to account for word-of-mouth interactions among potential adopters and several types of word-of-mouth spreaders in the population. Marketing variables that influence the transitions among the states are movie theme acceptability, promotion strategy, distribution strategy, and the movie experience. The model is calibrated in a consumer clinic experiment. Respondents fill out a questionnaire with general items related to their movie-going and movie communication behavior, they are exposed to different sets of information stimuli, they are actually shown the movie, and finally, they fill outpostmovie evaluations, including word-of-mouth intentions.These measures are used to estimate the word-of-mouth parameters and other behavioral factors, as well as the movie-specific parameters of the model. MOVIEMOD produces forecasts of the awareness, adoption intention, and cumulative penetration for a new movie within the population of interest for a given base marketing plan. It also provides diagnostic information on the likely impact of alternative marketing plans on the commercial performance of a new movie. We describe two applications of MOVIEMOD: One is a pilot study conducted without studio cooperation in the United States, and the other is a full-fledged implementation conducted with cooperation of the movie's distributor and exhibitor in the Netherlands. The implementations suggest that MOVIEMOD produces reasonably accurate forecasts of box-office performance. More importantly, the model offers the opportunity to simulate the effects of alternative marketing plans. In the Dutch application, the effects of extra advertising, extra magazine articles, extra TV commercials, and higher trailer intensity (compared to the base marketing plan of the distributor) were analyzed. We demonstrate the value of these decision-support capabilities of MOVIEMOD in assisting managers to identify a final plan that resulted in an almost 50% increase in the test movie's revenue performance, compared to the marketing plan initially contemplated. Management implemented this recommended plan, which resulted in box-office sales that were within 5% of the MOVIEMOD prediction. MOVIEMOD was also tested against several benchmark models, and its prediction was better in all cases. An evaluation of MOVIEMOD jointly by the Dutch exhibitor and the distributor showed that both parties were positive about and appreciated its performance as a decision-support tool. In particular, the distributor, who has more stakes in the domestic performance of its movies, showed a great interest in using MOVIEMOD for subsequent evaluations of new movies prior to their release. Based on such evaluations and the initial validation results, MOVIEMOD can fruitfully (and inexpensively) be used to provide researchers and managers with a deeper understanding of the factors that drive audience response to new motion pictures, and it can be instrumental in developing other decision-support systems that can improve the odds of commercial success of new experiential products.

Attitudes of Developing Counties Towards “Country-of-Origin” Products in an Era of Multiple Brands

Outside Nigeria, very little is known about the attitudes of Nigerian consumers towards Nigeria-made-products. This study investigated the influence of country-of-origin on attitudes towards products made in three technologically more advanced (TMA) countries and three technologically less advanced (TLA) countries. Three generic product forms, namely products-in-general* cars/spare parts and electronics were compared on six product-related attributes for the six countries. The results showed that products from the TMA countries were viewed more positively by nationals of developing countries, than those from the TLA countries. The respondents rated all products from developed countries more favorably than homemade products, suggesting reverse ethnocen-trism. In addition to the influence of the image of the country-of-origin and actual experience with the product, attitudes towards foreign production may have benefited from the sheer idea of foreignness being superior to domestic products or services. Such attitudes could be attributed to the denigrating colonial experience of the respondents' home country. Future studies may want to isolate and specifically test the influence of “FOREIGNNESS” in the consumer adoption process among nationals of developing countries.

Incorporating distribution into new product diffusion models

Diffusion models to describe the adoption process for new products have been extended and applied widely since their introduction to marketing. Although the first models were merely time-series models, later ones have incorporated many marketing decision and important exogenous variables. The one aspect of the marketing process which has not been included in these models, however, is the effect of the distribution of the product. We propose a model to remedy this gap in the literature, based on the assumption that there are two parallel adoption processes occurring for any new product—one for the retailers, and a second one for the consumers. Furthermore, there is an important interaction between these two processes—the consumer cannot purchase a product that is not available in retail outlets. This combined, interactive adoption process is modeled in two ways. The simpler of these models shows that initially limited retail distribution can create the typically observed S-shaped adoption curve, even when the consumer adoption process does not incorporate contagion. A second, more complicated model of the process is found to provide a good fit to combined retailer-consumer data on a large number of data sets from the motion picture industry.