Influence Of Branding Strategies On Consumers ' Adoption Decision Of Innovation

Influence Of Branding Strategies On Consumers ' Adoption Decision Of Innovation

Length: 1019 words (2.9 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

The Influence of Branding Strategies on Consumers ' Adoption Decision of Innovation: A Cross-Cultural Comparison


INTRODUCTION
A rapidly changing in the marketplace nowadays put pressure on firms to develop unique capabilities that help to create competitive advantages. Firms rely on the success of their new products and services to gain competitive advantage and drive growth in the future (Steenkamp et al. 1999; Keller and Lehmann 2006). One of the main challenges for new product managers over the last decades is how to understand the mechanisms of new product and services adoption decision by consumers (Rogers, 2003). Firms need the inspiration to direct their new product development activities, and branding gives that strategic guidance to the development of new product and makes them going forward (Brexendorf, Bayus & Keller 2015). Brand architecture strategy that adopted by a firm plays a critical role in defining brand boundaries and cohesiveness. Firms can follow different types of branding strategies to structure and manage their brands. Prior research suggests that the branding strategy that adopted by a firm can impact the success of innovations (Rao et al. 2004; Rubera and Droge 2013).

Consumers often face difficult choices in situations where they lack the ability to judge product quality. New Products generate uncertainty, and this uncertainty is true in judging the performance of new products. Brands provide consumers a means to reduce risk. Perceived risk and uncertainty have been widely demonstrated as barriers to innovation adoption (Gatignon and Robertson 1985). Given the importance of positive consumer evaluations of new product adoption, the ability of brands to influence consumer adoption and the trial is c...


... middle of paper ...


...ncertainty affects adoption decisions. The degree to which the functional, social, financial, and physical consequences of purchasing and using new products cannot be established; b) perceived Benefits of innovation includes functional, emotional, and social benefits that play an important role in relation to adoption (Rogers, 1995). Control variables include advertising, brand portfolio breadth, brand innovativeness, brand equity, and credibility.
Research Question:
To gain in-depth and analyze the influences of branding strategies, the following questions will be addressed in this research:
In what ways do brand architecture strategies influence consumers ' adoption decision of two different type of innovations: incrementally new products (INPs) and radically new products (RNPs)?
How national culture (individualism vs. collectivism) influences consumers adoption?

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Diffusion Of Innovation Curve Essay

- Essay Questions for Marketing Q.1: The Diffusion of Innovation Curve The diffusion of innovation curve refers to a curve which is used to explain why, how and the rate at which technology and ideas spread from one region to another. The curve is defined by the diffusion of innovation theory. The idea of the diffusion of innovation was coined by Professor Everett Rogers who was teaching the communication studies in the year 1962. Professor through his book "The diffusion of innovations" explains that diffusion of innovation refers to the condition in which the innovations is passed from one community to the other and to the participants who are found in a social system (Rogers 57)....   [tags: Marketing, Innovation]

Better Essays
1473 words (4.2 pages)

The Principles Of Disruptive Innovation Essay

- Principles of Disruptive Innovation: Christensen proposed principles of disruptive innovation as a framework for managers to understand them rather than overcome the change occurred because of disruptive technology. He explains the strength of the rules and emphasizes the in the point of people who engage in disruptive innovations from a new market point of view. 1. Companies rely on customers and Investors: Companies tend to listen to their best customer, to stay in business they kill new opportunities and give customers what they need....   [tags: Innovation, Marketing, Disruptive technology]

Better Essays
1609 words (4.6 pages)

Essay on MIS Improvement and Design Innovation

- Tornatzky and Klein performed a critical meta-analytic study of over 75 articles in their 1982 theses. They reviewed literature concerning innovation characteristics and their relation to innovation adoption and implementation. Tornatzky and Klein (1982) share the results that earlier literature was largely devoid of “any detailed examination of the reviewed studies’ methodological or conceptual rigor” (Tornatzky & Klein, 1982, p. 28). Based on their results, they determined that research in innovation characteristics is “typified by poor conceptualization and research methodology” (Tornatzky & Klein, 1982, p....   [tags: Innovation]

Better Essays
1317 words (3.8 pages)

Essay about Case Analysis: RL Wolfe

- INTRODUCTION RL Wolfe is an engineering and productions company that deals with the production of plastic pipes. The company has its headquarters in Houston, Texas. It is worth 350 million dollars and has three branches that include Wolfe’s Austin based in Texas, Columbus based in Ohio and the most recent branch that the company acquired based in Corpus Christi, Texas. The company has been trying to adopt new human resource management (HRM) practices in a bid to increase the productivity. The new HRM strategy is the adoption of self-directed teams (SDTs)....   [tags: human resource strategies]

Better Essays
3133 words (9 pages)

Innovation, Technology, And Innovation Essay

- In addition to invention process, innovation is an important process for countries to level up their technology capacity. Innovation process is more complex and more organized compare to invention due to the fact that invention may accidently take place. On the contrary, innovation should be planned and needs more effort to enhance technology and research which are important to increase innovative activities in countries. Fagerberg pointed out that innovation is helpful for low- income countries to catch up high income countries....   [tags: Innovation, Invention, Technology, Economics]

Better Essays
868 words (2.5 pages)

Essay on Foster Care And Adoption Are Life Decisions

- Foster care and adoption are life decisions that could change a family’s and well as a child’s entire life path. However, they are not well understood by most people in America and if they were it could open up a world of opportunity for aspiring families. Many people just do not think it would be for them due to the myths and horror stories they have heard but really they must be informed on how the process of both care plans actually work and how to become a foster and/or adoptive parent. Now it may not be the best decision for everybody it is still an option that everybody should be informed on....   [tags: Adoption, Foster care, Family]

Better Essays
1686 words (4.8 pages)

Essay about Big Data

- Introduction Big data is a concept that has been misunderstood therefore I will be writing this paper with the intentions of thoroughly discussing this technological concept and all its dimensions with regard to what constitutes big data and how the term came about. The rapid innovations in Information Technology have brought about the realisation of big data. The concept of big data is complex and has different connotations but I intend to clarify its functions. Big data refers to the concept of a collection of large and complex amounts of data that are found extremely difficult to notate or even process by most on-hand devices and database technologies....   [tags: information technology, innovation]

Better Essays
1116 words (3.2 pages)

Essay on Components of the Diffusion of Innovation Theory

- Diffusion of Innovation (DOI) Theory, developed by Rogers in 1962, is one of the oldest social science theories. It originated in communication to explain how, over time, an idea or product spreads through a specific population or social system. The end result of this diffusion is that people, as part of a social system, adopt a new idea, behavior, or product. Adoption means that a person does something differently than what they had previously. The key to adoption is that the person must perceive the idea, behavior, or product as new or innovative....   [tags: adoption, ideas, nursing ]

Better Essays
717 words (2 pages)

The, The Backbone Of Innovation Literature Essay

- Brophey et al (2013) opine that, Schumpeter’s (1939) seminal work serves as the backbone of innovation literature. Drucker (1985) and more recently, EU European Commission (2004) assert that, innovation is generally seen by both researchers and entrepreneurs as an essential competitive enabler for any enterprise that wants to lead the market and continue to exist. However, Andrew et al (2007) noted that, an understanding of managing innovation is a preamble to how the innovation process can be positively influenced....   [tags: Innovation, Creativity, Diffusion of innovations]

Better Essays
1012 words (2.9 pages)

Essay about Critical Thinking: Strategies in Decision Making

- Critical Thinking: Strategies in Decision Making Critical thinking is a process of applying various skills to analyze information. Critical thinking uses rationality to distinguish between emotion and fact. This paper will discuss the definition of critical thinking, and the skills it takes to think critically. It will also provide an example of critical thinking applied to my current working environment. Finally this paper will discuss the importance and benefits of critical thinking in the decision-making processes....   [tags: Decision Management Critical Thinking]

Better Essays
1019 words (2.9 pages)