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Factors Affecting Consumers Resistance to Innovation

In: Business and Management

Submitted By kamranarasha
Words 25400
Pages 102
JÖ N K Ö P I N G I N T E R N A T I O N A L BU SI N E SS SC H O O L
JÖ N KÖ P IN G U N IVERSITY

F actors A ffecting C onsumer
R esistance t o Innovation
-A study of Smartphones-

Master Thesis within Business Administration
Author:

Kamran Khan
Kim Hyunwoo

Tutor:

Desalegn Abraha

Jönköping

May 2009

Abstract
Background: In mobile phone industry, Smartphones are gaining popularity as an effective communication tool, providing users with “Smart” functionalities of both cell phone and Personal Digital Assistant (PDA). Experts in mobile industry expect that smartphones are going to be dominant in mobile phone market. However, Smartphone industry is facing a different reality, with its declining sales and less market share, forcing research companies (Gartner, Canalys, etc.) to change their expectations. This situation leads us to another important and often ignored perspective of innovation challenges, i.e. consumers' resistance; as consumers' adoption and purchase decision makes a significant difference in the success of innovative products.
Problem: Innovation has been called as a key factor for companies to survive and grow in the long run, especially in the dynamic & complex markets and uncertain economic circumstances. Despite the successful outcome of innovations, inhibition or delay in the diffusion of innovation may translate this success into market failure, where resistance has been called as one of the main reasons for inhibiting or delaying the innovation diffusion .
Consumers adoption of innovation depend upon several factors: the most important of which are specified as consumers’ characteristics (psychological characteristics of consumers; how they view the innovativeness with respect to that particular product), and the innovation characteristics (outcome and effects of innovation). Past research on innovation &

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