Antecedents and consequences of innate willingness to pay for innovations: Understanding motivations and consumer preferences of prospective early adopters

Abstract

Managers use knowledge of innate consumer innovativeness (inherent interest in new products and services) to adapt the marketing mix to preferences of the consumers most likely to adopt new products/services. As mere interest in new products/services may not sufficiently characterize early adopters in contexts with price differences between established and innovative, new products/services, this article introduces the concept of innate willingness to pay for innovations (IWTPI). Based on data from Germany, Indonesia, Bolivia, USA, and Japan, it tests hypotheses about the antecedents to IWTPI, the moderating effects of IWTPI on the formation of customer satisfaction, and their differences between products and services. IWTPI tends to be positively influenced by income (satisfaction), financial expectations, and importance of status symbols and negatively influenced by female gender, savings orientation, and stress avoidance. These effects are moderated by cultural and economic factors. IWTPI positively moderates the effects of perceived quality (only for products, not services), competitive advantages, public brand image, and social recognition and negatively moderates the effect of perceived value on customer satisfaction. These results inform managers on how to adapt marketing strategy to early vs. late adopters in different country and industry contexts with price differences between established and innovative, new products/services.

Impact of Image and Satisfaction on Marketing Innovation

“…They also provide important empirical evidence supporting the theoretical conceptualization described by Agarwal and Prasad, 1999;Homburg and Giering, 2001;Han and Back, 2008;Hillery et al, 2001;Frank et al, 2015, and these results increase this type of evidence for companies located in less developed destinations, where the dynamic and context is different from more established destinations. This could justify the difference in the correlation between Inn-Mark 1 , Inn-Mark 2 with MICTE.…”

“…This effect may be even stronger than reported in the literature on consumer innovativeness because willingness to pay for innovations presupposes a greater return on investment, in terms of social recognition, than mere interest in innovations (Frank et al, 2015).…”

“…But, in literature about image concept related with innovation marketing are limited. However, Frank et al (2015) introduces the concept of innate willingness to pay for innovations (IWTPI). Based on a questionnaire, authors collected consumer data from Germany, Indonesia, Bolivia, USA, and Japan; it tests hypotheses about the antecedents to IWTPI, the moderating effects of IWTPI on the formation of customer satisfaction, and their differences between products and services.…”

Should governments fund basic science? Evidence from a willingness-to-pay experiment in five universities

“…As a result, we expected the social attitude towards the discovery potential at the LHC, as measured by WTP, to be lower for women and older people. Similar results are reported in studies on WTP for technology and innovativeness (Frank et al 2015;Kwak and Yoo 2012).…”

“…The literature on people's perceptions, attitude and interest in science, research and innovation focus on variables that mainly belong to one of three groups: demography, financial resources and cultural values such as the attitude towards voluntary donation and awareness about ongoing scientific challenges and discoveries (Potvin and Hasni 2014;Kim et al 2014;European Commission 2014;2010). Demographic variables constitute the personal characteristics and they are presumed to affect behavioral patterns (Frank et al 2015;de Jonge 2015;European Commission 2014). Financial resources measure the capability to contribute to a public good and are thus considered an essential prerequisite to be willing to pay (Ubilava et al 2010;McClelland and Brooks 2004).…”