Factors Affecting Consumer Resistance to Innovation in Mobile Phone Industry

Abstract

Innovation has been called as a key factor for companies to survive and grow in the long run, especially in the dynamic & complex markets and uncertain economic circumstances. The purpose of this research is to analyze the relationship between consumers' resistance and different factors from innovation and consumers' characteristics. Confirmatory factor analysis has been done on pre-test questionnaires to test, improve, and verify the constructs (variables/questions) for measuring the hypothesized factors. A theoretical model has been proposed from the hypotheses; and Structural Equation Modeling has been applied, where results are estimated through Partial Least Square and AMOS approaches, using a sample of 330 respondents from Iran. Five out of eight hypotheses have been supported by our empirical data, where H1 i.e. relative advantage, H3 i.e. complexity, and H4 i.e. perceived risk, are from innovation characteristics, while H6 i.e. motivation, and H7 i.e. „favorable attitude towards existing products‟ are from consumers' characteristics. Motivation, Complexity, Relative Advantage, and Perceived Risk are found as important factors that affect/determine consumers' resistance to mobile phone.