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1. Research purpose
Few things are as fundamental to the consumer
research as the adoption of new products since a new
product introduction has been a critical strategy for
companies seeking growth and profitability. In areas
with rapid technological advances, the majority of sales
are likely to result from recently developed products.
Cellular phones, compact discs, and computers probably
best exemplifies this perspective. Likewise, the success
of frequently purchased goods heavily rely on the introduction
of new products(Menon & Kahn, 1995). Frito-Lay is
good at coming up with new products which is essential
to keep the lead in the snack food business(Alsop &
Abrams, 1986). Proctor & Gamble has also maintained
its leading position in detergent products by introducing
new brands such as Cheer, Gain, Bold 3, Dash, Dreft,
Oxydol, Era, and Solo(Aaker, 1991)
The spread of new products, however, is risky
because an average of 35% of it tends to fail(Kotler,
1984). The majority of products are not easily adopted
by consumers and diffused across different segments
because newer products may be perceived as more risky
and consumers must be convinced(Aggarwal, Cha, &
Wilemon, 1998). The Coca Cola company, for instance,
introduced a new Coke in late April 1985 in replace
of the original Coke. Less than three months later,
its decision had to be reversed because of strong aversion
among loyal drinkers of Classic Coke(Peter & Olson,
1994).
Thus, the study of how and why consumers adopt
new products in their choices has long been a major
focus of interest. This paper tries to examine the process
in terms of following aspects. First, adoption can be
specified at three levels in product purchase(Midgley
and Dowling, 1978): a specific single product, a specific
product category, and across a number of product categories.
While these levels are distinct, the previous research
have mostly dealt with the latter two types(Steenkamp
and Baumgartner, 1992). Since marketers are primarily
concerned about the adoption of a brand rather than
product categories, this study looks at the first type
of innovative behavior as a major dependent variable.
Second, this study proposes to combine the
factors from the dimensions of consumer and communications.
The personal traits have been suggested to explain the
diffusion of innovations. In particular, this study
includes innovativeness as a critical propensity, which
underlies in the trial of new products(Rogers 1983;
Midgley and Dowling, 1978). Furthermore, there are few
studies to integrate mass and interpersonal communication
influences(Chaffee & Mutz, 1988). Thus, word-of-mouth
as well as advertising are included as major communication
factors.
Lastly, we explore the determinants of adoption
behavior in a field study with a hope to enhance the
generalizations of the findings. By selecting a new
product of soft drink, introduced in Korea by a local
manufacturer, we could explore the paths of adoption
among teens, one of primary target markets. Since the
data has been collected right after the introduction,
the study could help to establish the ecological validity
of the related constructs.
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