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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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