How customers' perceptions of innovation activities drive brand preference, purchase and recommendation: The moderating role of product category

Abstract

This study investigated how innovation activities impact brand performance outcomes from the perspective of customer cognitive and affective mindsets. The collective findings from both Partial Least Squares Structural Equation Modeling (PLS‐SEM) and fuzzy set qualitative comparative analysis (fsQCA), based on 372 customer responses, demonstrated that a combination of product, process, store, and marketing innovation activities produces optimal results in terms of customer‐based brand equity, subsequently influencing purchase and recommendation. Post‐hoc analysis revealed that perceived innovation activities exert a weaker influence on brand equity in high‐tech product categories (e.g., smartphones) compared to lower‐tech product categories (e.g., skin care products and apparel). This study confirmed that customers' perceptions of brand innovation activities result from both technological innovation (e.g., cutting‐edge offerings) and symbolic innovations (e.g., new marketing communications).