Consumer perceptions of monetary and non-monetary introductory promotions for new products

Abstract

Little research has examined how consumers respond to sales promotions in new product categories. This article fills this gap by integrating research on reference prices with literature on sales promotions for new product categories. Existing research suggests that consumers respond more favourably to non-monetary promotions (e.g. extra free promotions) than monetary promotions (e.g. price discounts) because non-monetary promotions are framed as segregated gains rather than reduced losses. However, both kinds of promotions are widely used in practice, suggesting the importance of other contributory factors. With a consumer experiment on a national panel of consumers, this research demonstrates that extra free product promotions are most preferred for existing products, and introductory low-price promotions are preferred for innovative products. The moderating effect of a product's innovativeness is explained via a new relationship in the marketing literature, whereby perceived risk mediates the relationship between perceived innovativeness and a consumer's tendency to stockpile.     

Strategic recommendations for new product adoption in the Chinese market

ABSTRACT

This study extended current understandings of the relationships among domain specific innovativeness (DSI), the desire for unique consumer products (DUCPs), perceived new product characteristics (PNPCs), and Chinese consumers’ new product adoption behavior. It also investigated the indirect effect of vicarious learning behavior on Chinese consumers’ acceptance of new products. Data was collected in Shanghai, China. The results demonstrated that DSI and PNPCs were the primary drivers of new product adoption. The study also showed that PNPCs played a mediating role in the relationship between vicarious learning and the adoption of new products by Chinese consumers. The results confirmed the predictive power of DSI and how PNPCs affect Chinese innovative buying behavior. The results also suggest that PNPCs facilitate Chinese consumers’ new product learning behavior.     

消费者创新性的结构测量及对创新性行为的影响

现有文献比较全面地揭示了消费者创新性与新产品创新性行为之间的多重关系,并探讨了这些关系产生的条件和机制。但绝大多数的理论和经验研究都将消费者创新性视为一个单维构念来进行操作性界定和测量,很少有研究去探索其内在结构并在此基础上检验每个维度与新产品创新性行为之间的关系。文章旨在探讨消费者创新性的结构维度并在此基础上观察不同类型的消费者创新性对创新性行为的影响。结论表明,消费者创新性是一个包括感知创新性和认知创新性的双维构念;作为整体的消费者创新性与新产品采用行为并没有显著的相关性,只有认知创新性才与新产品的采用行为正向相关,而感知创新性只与新产品的创新性信息搜寻正向相关。上述结论为消费者创新性提供了一个新的认识,也为今后学者从该角度来研究有关消费者创新性的其他问题提供了变量测量的工具,而且还为新产品的营销实践提供了新的管理启示。     

Understanding factors affecting consumer intention to shop in a virtual world

The objectives of this study were to understand that factors affecting consumer intention to shop in a virtual world and to analyze the relationships among these factors. Particularly, this study explored consumer innovativeness (consumer novelty seeking, consumer independent judgment making) as an external variable that influences consumer intention indirectly through its effects on consumer experiences with the virtual world application (ease of use, control, concentration, enjoyment). The findings indicated that consumers’ perceived enjoyment and control positively influenced their shopping intentions. While consumer novelty seeking had no significant effect on shopping intention consumer independent judgment making significantly affected consumers’ intention to shop in a virtual world indirectly through its positive effects on perceived control, enjoyment, and ease of use.     

Young consumers’ innovativeness in apparel choices: A model including consumer self‐confidence

In industries with network effects, consumer innovators help to trigger the critical mass needed for a product innovation to be successful. Thus, firms can benefit from actions that increase consumer innovativeness in their target markets. Consumer innovativeness has been associated with variables such as hedonic shopping motivation, impulsiveness and status seeking. There is limited work on the impact on consumer innovativeness of consumer characteristics that reflect consumers’ self‐confident ability to choose. This study proposes and tests a model for consumer innovativeness that incorporates variables from previous research and uncovers the importance of consumer self‐confidence. We collect survey data from 534 Chilean girls, ages 10–15. After building constructs with the help of exploratory factor analysis, we analyze the data with linear regression estimation (via OLS). Our results reveal that consumer self‐confidence is positively and significantly related to consumer innovativeness. Our findings also add evidence ‐from a younger age group‐ regarding the significance of status seeking, impulsiveness and hedonic shopping motivation on consumer innovativeness. Results suggest that companies could leverage consumer innovativeness by taking actions to increase consumers’ self‐confidence. Innovative apparel choices in young consumers could possibly also be strengthened by communicating status achievement and by enhancing shopping enjoyment.     

Consumer acceptance of a revolutionary technology-driven product: The role of adoption in the industrial design development

Understanding how consumers adopt a state of the art product is important for the development and marketing of innovative products. The purpose of this study is to examine factors that affect consumer intentions to use a revolutionary technology-driven product (RTP). The research integrates two innovation adoption models, the Unified Technology Acceptance and Utilization Theory (UTAUT) and the Task-Technology Fit (TTF) model with two antecedents of consumer characteristics: consumer innovativeness and perceived value of a new product. The study examines consumer responses to an unfamiliar product, the TEASER which is a conceptual digital cookbook that offers taste sampling, thereby providing an online food-tasting experience. Consumers who are prone to innovativeness and who perceive value in a RTP’s aesthetics are able to discern the conditions that support their intent to use such a product. The resulting model expands the UTAUT and TTF theories by showing that UTAUT variables mediate between the variables of TTF and adoption intentions. These results support the need for nonlinear industrial development processes involving consumers.     

A cognitive model to predict domain-specific consumer innovativeness

Marketers who launch innovative products need to identify consumers who are willing to learn about, buy, and use these innovations. To optimize marketing campaigns, practitioners need to know the characteristics of this key segment in the diffusion process. Previous research, however, provides confounding results about antecedents of innovativeness because of two limitations: (1) previous studies have conceptualized innovativeness on different levels of abstraction (2) previous studies have not taken into account the influence of the product category. The present paper suggests a conceptual framework to overcome these shortcomings. Based on this framework, the paper suggests a theoretically founded cognitive model of domain-specific innovativeness for a product category with a utilitarian benefit. This model is empirically tested in the field of automotive interior. To this end, 521 German car drivers were surveyed. The results of structural equation modeling show that domain-specific innovativeness for utilitarian products is mainly influenced by specific need for cognition, special interest media usage and domain-specific opinion leadership.     

Does Innovativeness Drive Environmentally Conscious Consumer Behavior?

This study seeks to improve the predictive utility of the attitude–behavior link within the realm of environmentally responsible consumption by examining the role of consumer innovativeness as a mediator. A sample of over 1400 American consumers provided data regarding their attitudes about the environment, receptiveness to new and innovative ideas, propensity to adopt new products early, and likelihood of performing a variety of green behaviors. The evidence suggests that one dimension of consumer innovativeness mediates the link between environmentally conscious attitudes and behaviors: the general affinity for new ideas. Managerial implications of these findings are discussed.     

Acceptance of New Food Products: Reference Prices and Psychological Moderators of Heterogeneous Price Effects

This paper emphasizes a consumer-centered perspective to understand new food product success. It pursues two central objectives by showing that consumers are more likely to interpret new product prices as offering gains or losses depending on their individual purchase histories, and consumer psychographics are demonstrated to affect new product adoption directly, and/or moderate effects of prices and promotions as well as quality signalling product attributes. Several hypotheses are generated based on explanations of underlying psychological mechanisms. For data analysis a cross-classified random effects model is applied to household panel data on yoghurt and sausages that includes four crossed random factors. The findings confirm that inclusion of consumer-specific price information is beneficial for understanding new food products’ adoption behavior. Monetary losses as well as gains negatively affect adoption. Purchase habits also hinder adoption while consumer innovativeness is an important driver. Price consciousness and purchase habits moderate price and promotion effects. While price consciousness reinforces negative effects of prices and positive effects of promotions, habits hinder positive effects of promotions. This implies that introductory promotions are an inappropriate strategy for attracting habitual consumers, and managers should identify appropriate target groups in order to improve the efficiency of introductory promotions.     

Understanding the intention to use mobile shopping applications and its influence on price sensitivity

This study employs an extended technology acceptance model (TAM) and the theory of diffusion of innovations (DOI) to understand the intention to use mobile commerce applications for shopping purposes. The variables—perceived enjoyment, perceived risk and personal innovativeness—were added to the original model. The price sensitivity criterion was predicted using the variables—perceived risk, personal innovativeness, satisfaction and the intention to use. An online questionnaire was circulated nationwide through email to verified e-commerce users and a sample of 675 respondents was taken for analysis through structural equation modeling approach. Gender, experience and frequency of using mobile shopping applications were used as moderators for all relationships. Findings of this study reveal that personal innovativeness and perceived risk play a major role in deciding the intention to use mobile shopping applications. Users who are highly innovative and with a higher intention to use mobile shopping applications are less sensitive to price. Various managerial implications including applications to differential pricing, improving adoption pace and segmenting consumers to design marketing strategies are discussed.     

The emotional side of price

This exploratory study considers the role emotion plays in relationships among several constructs surrounding price. The findings suggest that some aspects of emotion—here surprise and enjoyment—play a role in consumers' responses to and use of price information. Surprise and enjoyment were found to act in concert with involvement, price consciousness, and price–quality associations in respondents' complex reactions to price. Everyone's personal experience suggests that emotions can influence people's reactions to the price of products; this research lends preliminary empirical support to such everyday experiences. The results of this exploratory study clearly point to the need for more definitive studies in the future. © 2001 John Wiley & Sons, Inc.     

Price-aware enhanced dynamic recommendation based on deep learning

Price is one of the essential elements influencing consumer purchase behavior. Like consumers’ preferences in products, their price preferences also dynamically change over time. However, dynamic price preferences haven’t been fully considered in existed recommendation studies. In this study, we propose a deep learning-based dynamic recommendation model by considering consumers’ dynamic preferences in both product and price. We specially design a review-and-rating-based sequence generator to select products whose prices the consumers are satisfied with to form the new purchase sequence. We also develop a multi-level attention mechanism in the transformer layer to explore the correlations between consumers’ price choices and to combine the price preferences with the product preferences. Experimental results show the proposed model outperforms the state-of-the-art models on some real-world datasets. Our findings can help retailers understand consumers’ price preferences and make informed decisions related to pricing, discounting, and bundle sales strategies.     

Beyond the technology adoption: Technology readiness effects on post-adoption behavior

Technology readiness (TR) refers to people's propensity to embrace and use new technologies. Nowadays, the proliferation of technology-based products and services brings consumers not only benefits but also frustration over ineffective use of products and services. A key factor, therefore, in the diffusion and success of these products and services is how well-prepared consumers are for new technologies. Although some studies examine the relationships between TR and technology adoption, the long-term survival and substantial success of firms rely on the continued use of such technology rather than first use. This study focuses on post-adoption behavior and investigates how TR affects the continued use intention of new technology. Specifically, the study classifies usage behavior into the usage rate of basic functions, the usage rate of innovative functions, and the variety of use of innovative functions. The article then, examines how each dimension (optimism, innovativeness, discomfort and insecurity) of TR influences consumer usage patterns, and how usage patterns affect repurchase intention through consumer satisfaction. The empirical results from IPTV users in Korea show that each dimension of TR has a significantly different influence on usage patterns. The findings show that usage patterns, particularly the use of innovative functions, have a significantly positive impact on consumer satisfaction and repurchase intention. Finally, the article suggests several managerial implications and directions for further studies.     

The influences of consumer innovativeness and consumer evaluation attributes in the purchase of fashionable ethnic wear in India

This paper highlights the consumer motivations for purchase of an innovative product like fashionable ethnic wear in India. It attempts to combine consumer innovativeness constructs and consumer evaluation attributes to understand buying behaviour in fashionable ethnic wear through a consumer survey. It confirms the relationship between product usage (the number of brands bought) and ethnic wear domain‐specific innovativeness. It also explores the correlations among different dimensions of consumer innovativeness like domain‐specific innovativeness, optimum stimulation level and consumers' need for uniqueness constructs. It shows the difference in importance attached to the chosen consumer innovativeness constructs and consumer evaluation attributes by buyers and non‐buyers in the purchase process.     

Development time and new product sales: A contingency analysis of product innovativeness and price

Opposing theories and conflicting empirical results with regard to the effect of development time on new product sales suggest the need for a contingency analysis into factors affecting this relationship. This study uses a unique combination of accounting and perceptual data from 129 product development projects to test the combined contingency effect of product innovativeness and new product price on the relationship between development time and new product sales. The results show that for radically new products with short development times, price has no effect on new product sales. When the development time is long, price has a negative effect on the sales of radical new products. The findings additionally show that price has no effect on sales for incremental new products with short development times and a negative effect for incremental new products with long development times. Together, these findings shed new light on the relationship between development time and new product sales.     

Besting the status quo: the effect of abstract versus concrete mindsets on emotional trade-off difficulty and avoidant coping behavior

Building on past emotional trade-off difficulty and construal level research, we investigate the conditions under which consumers engage in avoidant coping behavior to reduce negative emotions that arise from trading off valued attributes (e.g., quality and price). Results from three studies offer evidence that an abstract (vs. concrete) mindset systematically decreases avoidant coping behavior (e.g., the selection of a status quo option) by reducing the intensity of the negative emotion consumers experience. This effect replicates across construal level manipulations and product categories. Thus, in addition to the harmful effects of negative emotions and coping behavior on consumer choice identified in past research, we find that an abstract (vs. concrete) mindset can help consumers make better (i.e., more normative) choices. Together, these findings have implications for marketers of new or unfamiliar products as well as products that are not incumbents or category leaders (i.e., status quo options) when consumers face difficult trade-offs.     

Every ending is a new beginning: Poignancy increases consumer preferences for self-made products

Retailers and brands such as IKEA, Home Depot, and Build-a-Bear encourage consumers to ‘make’ their products rather than be passive recipients. While a growing literature explores ‘why’ consumers purchase self-made products, it is less understood ‘how’ marketers can develop effective advertising and marketing communications to promote such products. Building on the functionalist framework of emotion, the present research explores the potential of a mixed emotional appeal – poignancy – that may be useful in enhancing consumer preferences for self-made products. Notably, this effect is mediated by a fresh start mindset and openness to learning. The effect is also attenuated among consumers with a low personal control. In addition to having substantive practical implications to marketers in developing effective communication strategies, this research offers a novel perspective on the effect of poignancy on consumer decision making.     

Helping You to Waste Less? Consumer Acceptance of Food Marketing Offers Targeted to Food-Related Lifestyle Segments of Consumers

ABSTRACT

Consumer households and consumer behavior have been identified as the major cause of food waste in the supply chain. Food marketing might offer products and services that help consumers to reduce their food waste or reduce the consumer-related food waste at the consumer–retailer interface. However, such strategies require consumer acceptance and targeting the right customers. Through an online survey of 800 Danish consumers and a measure of food-related lifestyle, four clusters of consumer segments are identified. The segments are compared with regard to their acceptance of a number of actions consumers can take to reduce food waste or their acceptance of food marketing services they would need to pay for. Acceptance differs with food involvement and the role of the price criterion, as well as with gender, education and age. The findings show how food marketing can help consumers to reduce food waste, through actions targeted to specific segments of consumers characterized by food-related lifestyle differences.     

Making new products go viral and succeed

Why are some new product introductions more viral and successful than others? This research integrates theories of interpersonal communication and consumer learning to explore this question. Analyzing a unique data set of millions of consumer word-of-mouth transmissions (eWOM) on social media regarding 345 new automobile products introduced during 2008–2015, we find that more innovative products generate more eWOM volume but surprisingly less positive sentiment. These effects vary in magnitude across eWOM channels. However, the use of rich-content communication, pre-announcement, and cobranding strengthens (weakens) the positive (negative) effect of product innovativeness on eWOM volume (sentiment). The results further indicate that eWOM sentiment is a stronger predictor of new product success than eWOM volume. Experimental results reveal more insights into how product innovativeness influences eWOM metrics in several product categories and shed light on the role of excitement and perceived risk as mechanisms underlying these effects. The research offers useful implications for firms to design effective viral marketing campaigns to enhance new product success.