This paper investigates the role of cultural differences in the acceptance of new products, as moderated by socio‐economic variables. In order to assess the relationship, an analysis utilizing Hofstede's cultural dimensions, along with secondary data representing socio‐economic structure and the penetration rate of new products was undertaken. The results demonstrate that power distance and uncertainty avoidance hinder the acceptance of new products. Also found is that individualism has a positive effect but the masculinity dimension has no significant effect on the diffusion of new products. The findings regarding the moderation effects of the socio‐economic variables are mixed.
International Marketing Review – Emerald Publishing
Published: Aug 1, 2003
Keywords: Culture (sociology); Product development; Social economics
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