Entrenched Knowledge Structures and Consumer Response to New Products

TLDR

Diffusion models predict new product adoption, yet the psychological processes guiding individual consumer decisions remain underexplored. This study applies the knowledge transfer paradigm to show that existing knowledge and innovation continuity shape consumer adoption. Two experiments reveal that the link between expertise and adoption is complex. Experts outperform novices on continuous innovations but, for discontinuous ones, entrenched knowledge reduces comprehension and perceived benefits unless supplemented by additional information, implying segmentation, media planning, and brand loyalty strategies.

Abstract

Although diffusion models have been successfully used to predict the adoption patterns of new products and technologies, little research has examined the psychological processes underlying the individual consumer's adoption decision. This research uses the knowledge transfer paradigm, studied often in the context of analogies, to demonstrate that both existing knowledge and innovation continuity are major factors influencing the consumer's adoption process. In two experiments, the authors demonstrate that the relationship between expertise and adoption is relatively complex. Specifically, their findings indicate that, compared with novices, experts report higher comprehension, more net benefits, and therefore higher preferences for continuous innovations. However, for discontinuous innovations, experts' entrenched knowledge is related to lower comprehension, fewer perceived net benefits, and lower preferences compared with that of novices. Only when this entrenched knowledge is accompanied by relevant information from a supplementary knowledge base are experts able to understand and appreciate discontinuous innovations. These findings have implications for segmentation, media planning, and the creation of product/brand loyalty.