Willingness of consumers toward innovation

Abstract

Innovativeness influences by national culture is broadly discussing in the literature of innovation, willingness to pay (WTP) by consumer for improvement. However, innovative high technical firms complete by enhancing their goods with advanced features, and evaluating consumer WTP for these new attributes in different countries is important to adapting the launching price and enhancing profits during the critical launch phase. To fill this gap, the purpose of this paper is to study the impact of national culture and globalization on consumer value and the related WTP for technological innovation. Using large illustrative and similar consumer samples, data were collected in two culturally different but economically similar countries (France and Germany). For principal method of data analysis, Choice-based conjoint analysis was used. This study indicates the influence of domestic culture on customer value and the WTP for IT inventions and the moderating effect of household revenue on this relationship. This study is providing strong empirical evidence and the first to reveal of the impact of domestic culture on WTP for innovations. Furthermore, this study shows moderating impact of income on this relationship and to highlight a developing European innovation adoption attitude.