The Effect of Alliance Image on the Relationship between Consumer Innovativeness and New Product Adoption

Jerome Christia

Abstract


The adopter classification system suggests that an innovating firm should research the characteristics and behaviors that are specific to consumer innovators and direct communications specifically to them (Kotler 1994). Increasingly, in the face of stiff competition, many companies are strategically forming alliances to create new products to appeal to innovators and non-innovators. An alliance is a cooperative form of organizational structure that centers on core competencies. This creates very important theoretical issues and managerial concerns regarding new product development. These issues affect marketing management, strategies and planning, decision-making processes, market segmentation, target markets and product positioning. Strategic alliances form to obtain enabling technologies that can shorten the new product development process (Shilling and Hill 1998). In addition, alliances are growing strategic phenomenon allowing organizations to focus on their specific areas of expertise and leverage their competitive advantage. Spekman and Sawhney (1990) noted that the motivation for companies to enter into alliances is to obtain strategic advantages. This paper links the concepts of new product adoption, alliance image and consumer innovativeness.  There is evidence that alliance image between strong companies moderates the relationship between consumer innovativeness and the likelihood of new product adoption.


Keywords


Consumer Innovativeness; Alliance Image; New Product Adoption

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References


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DOI: http://dx.doi.org/10.18533/ijbsr.v4i4.447

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