Using product development information to spur the adoption of continuous improvement products
- PDF / 619,466 Bytes
- 18 Pages / 595.276 x 790.866 pts Page_size
- 54 Downloads / 149 Views
ORIGINAL EMPIRICAL RESEARCH
Using product development information to spur the adoption of continuous improvement products Nga N. Ho-Dac 1
&
Minu Kumar 1 & Rebecca J. Slotegraaf 2
Received: 29 September 2018 / Accepted: 22 April 2020 # Academy of Marketing Science 2020
Abstract Continuous improvement products (CIPs) are designed so that firms can make post-purchase improvements without requiring the user to fully replace the product. Although CIPs are becoming increasingly common in the marketplace, there are challenges in having customers adopt these products. In this multimethod research using two different types of studies, we find that sharing information about development progress increases adoption of the current version of the CIP, and that this relationship is mediated by the perceived commitment of developers to the product. Furthermore, we find that product familiarity moderates this mediation relationship. Our research offers insight to scholars interested in this new wave of products, and offers direction for managers in how to market their CIPs. Specifically, we recommend that firms developing CIPs use product development information as a marketing tool to communicate their commitment to the continued improvement of the product and to spur the purchase of the current versions of their CIPs. Keywords Continuous improvement products . Product development . Product adoption
As the distinction between goods and services continues to narrow (Vargo and Lusch 2004), firms are increasingly creating products as assemblages of hardware, software, and data that can be upgraded post-purchase (Hoffman and Novak 2018; Vargo and Lusch 2016). The pervasive rise of the Internet of Things (IoT), push technology, and cloud services has also enabled firms to create products and services that can be repeatedly improved after a consumer’s initial purchase, John Hulland served as Editor for this article. Electronic supplementary material The online version of this article (https://doi.org/10.1007/s11747-020-00730-6) contains supplementary material, which is available to authorized users. * Nga N. Ho-Dac [email protected] Minu Kumar [email protected] Rebecca J. Slotegraaf [email protected] 1
San Francisco State University, 1600 Holloway Avenue, San Francisco, CA 94132, USA
2
Indiana University, HH 2100, 1309 E. 10th Street, Bloomington, IN 47405, USA
through hardware, software, and data modifications. For example, the Tesla Model S, Samsung Family Hub refrigerator, and Phillips Hue Lightbulbs all use remote software releases from the firm to add improved features and functions postpurchase. Machine learning and AI (artificial intelligence) products such as chat bots, facial recognition, and selfdriving cars continuously receive upgrades from the firm to improve their functionality over time. Smart farming solutions that include IoTs, sensors, geo-positioning system, big data, and robotics (e.g., unmanned drones) are also continuously improved post-purchase via software upgrades, data upgrades, or hardware modificati
Data Loading...
