The Contributions of Firm Innovativeness to Customer Value in Purchasing Behavior

Abstract

The purpose of this research is to examine the influence of firm innovativeness and product innovativeness on the components of customer value mediated by instrumental and symbolic brand benefits.Over the last 10 years, the mobile phone industry in Korea has grown rapidly, with the introduction of several innovative phone features. The research context therefore is mobile phones with Internet access and their users in Korea.A major research finding is that the firm innovativeness affects product innovativeness, and hence, the instrumental brand benefits. A firm's innovativeness also has a significant effect on the symbolic brand benefits and the partnership value.Our key academic contribution is to expand the previous fragmentary studies of customer value, by classifying customer value into four components: expectation, partnership, transaction, and relationship customer values, rather than just focusing on benefits and sacrifices.Implications for managers include the verification that firm innovativeness is a source of ability for mobile phone firms to create value for customers. Instrumental and symbolic brand benefits through innovation should be the focus area for marketers and new product development (NPD) managers in mobile phone firms to communicate with consumers to increase expectation values in the prepurchase step.

The Contribution of Perceived Firm Marketing Innovation Initiatives to Customer Perceived Value and Loyalty: Does Switching Experience Really Matter?

“…In addition, cruise travellers' experience was found to have a significant positive effect on perceived luxury value. Kim et al (2015) also verified that perceived brand benefits (in instrumental and symbolic) through innovation enables mobile phone firms to create superior value for customers, which in turn can increase customer satisfaction.…”

“…Innovation allows differentiating the firm's offering by creating advantages that customers really appreciate and value (van Riel & Allard, 2012). Hence, the competitive advantage of successful firms can be explained with a logic wherein perceived firm marketing innovation initiatives (PFMII) contributes to customer value, resulting in increased satisfaction and behavioural intentions, eventually escalating loyalty that manifests itself in enhanced profitability (Kim et al, 2015;Kunz, Schmitt, & Meyer, 2011;Naidoo, 2010, Stock, 2011Williams & Soutar, 2009). More recently, Hwang and Hyun (2015) examined the role of perceived firm innovativeness based on data from 315 cruise travellers, and found that perceived firm innovativeness plays an important role in forming cruise travellers' experience related to education, entertainment, aesthetics, and escapism.…”

“…The plan also offers customers free internet roaming across Asia, free calls to U Mobile friends all day and night, and also unlimited internet with no extra charges after exceeding quota. Significant innovation allows a firm to establish a competitively dominant position by differentiating its customer value proposition from that of its competitors (Danneels & Kleinschmidtb, 2001;Kim, Kim, Garrett, & Jung, 2015). Embarking on marketing innovation initiatives further signals to customers that a firm intensively tries to fulfil their evolving needs by making continuous investments into innovation, leading to enhanced satisfaction and loyalty (Stock, 2011).…”

Motion to innovation: Brand value sources have (not) changed over time

“…The theory of innovation as relevant brand value source in its actual meaning starts to be created later, when the influence of company innovativeness and product innovativeness on the components of customer value, is analysed [7].…”

“…Hypothesis H1: After the equation (1) substitution, the value of testing characteristic was calculated (7,325). The critical testing characteristic was calculated through the Microsoft Excel, using the function NORMINV (0,05; 0; 1).…”