Conventional wisdom holds that innovativeness has essentially positive
performance implications. However, empirical research reveals mixed
findings regarding customer-related responses to innovation, as distinct
dimensions-such as product newness and meaningfulness-may generate
responses in different manners. This study introduces a multidimensional
conceptualization of innovativeness at the program level, thereby
enlarging the customary perspective by considering both positive and
negative customer responses to innovativeness. Drawing on information
economics, this study suggests that product program meaningfulness
fosters customer loyalty, whereas product program newness undermines
customer loyalty. In addition, the study examines mechanisms that might
buffer the negative newness-loyalty relationship and explores enablers
of the positive meaningfulness-loyalty effect by considering a brand's
association with innovativeness and customer integration. Empirical
support for the proposed effects comes from a multi-industry sample with
180 triadic cases from business-to-business companies, which includes
assessments from marketing, and research and development managers as
well as customers. Moderated regression analysis was applied to test the
hypotheses. The results indicate a negative effect of product program
newness on customer loyalty and a positive effect of product program
meaningfulness. Further, a brand's close association with innovativeness
reduces the negative effect of product newness, and integrating
customers into the value-creating process fosters the loyalty effect of
product meaningfulness. This study offers a potential explanation for
the ambiguity created by equivocal empirical results regarding customer
responses to innovativeness. The study also shows that offering more
innovations does not necessarily make customers loyal. Instead, managers
should mitigate the negative effects of product program newness.
[ABSTRACT FROM AUTHOR]