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Determinants of consumers’ frugal innovation acceptance in a developed country

Determinants of consumers’ frugal innovation acceptance in a developed country This study aims to understand why young people are interested in buying frugal innovations.Design/methodology/approachData were collected with a survey administered to 534 university students enrolled in various fields of study (e.g. sciences, technology, economics and fine arts). Using the Tata Nano car as an example of frugal innovation, a model based on the unified theory of acceptance and use of technology was developed using partial least squares structural equation modeling.FindingsThe model’s results reveal that effort expectancy, performance expectancy and facilitating conditions are critical factors that explain university students’ intention to buy Tata Nano.Originality/valueAlthough frugal innovations are often introduced first in developing countries, frugal innovations could be highly relevant to users in developed nations as these innovations can provide market opportunities in terms of cost-conscious, relatively low-income and sustainability-conscious consumers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Young Consumers: Insight and Ideas for Responsible Marketers Emerald Publishing

Determinants of consumers’ frugal innovation acceptance in a developed country

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1747-3616
DOI
10.1108/yc-10-2020-1223
Publisher site
See Article on Publisher Site

Abstract

This study aims to understand why young people are interested in buying frugal innovations.Design/methodology/approachData were collected with a survey administered to 534 university students enrolled in various fields of study (e.g. sciences, technology, economics and fine arts). Using the Tata Nano car as an example of frugal innovation, a model based on the unified theory of acceptance and use of technology was developed using partial least squares structural equation modeling.FindingsThe model’s results reveal that effort expectancy, performance expectancy and facilitating conditions are critical factors that explain university students’ intention to buy Tata Nano.Originality/valueAlthough frugal innovations are often introduced first in developing countries, frugal innovations could be highly relevant to users in developed nations as these innovations can provide market opportunities in terms of cost-conscious, relatively low-income and sustainability-conscious consumers.

Journal

Young Consumers: Insight and Ideas for Responsible MarketersEmerald Publishing

Published: Jul 7, 2021

Keywords: Frugal innovation; Developed countries; Unified theory of acceptance and use of technology; Partial least squares structural equation modeling

References