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...
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...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.
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?
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