The Role of Defaults in Preventing Innovation Rejection

Item Type Journal paper
Abstract Innovation rejection remains a serious problem for companies introducing new products, as customers may overvalue products they already own and underestimate the innovation's advantage. Choice data from two experiments demonstrate that innovation rejection is determined by (dis)satisfaction with the status quo and that defaults are powerful instruments to overcome the status quo effect in innovation decision making. Innovation rejection decreases significantly if the innovation is implemented as a default, an option customers select unless they actively opt out. Furthermore, it is observed that implementing the innovation as the default significantly increases the perceived value and decreases the perceived risk of the innovation. Taking into account customer expertise, the authors detect that defaults are more effective in reducing innovation rejection for novices. The study derives managerial implications for new product launch management that aims at preventing innovation rejection.
Authors Kuester, Sabine; Hess, Silke & Herrmann, Andreas
Journal or Publication Title International Journal of Innovation Management
Language German
Keywords Innovation rejection; status quo bias; defaults; customer expertise
Subjects business studies
HSG Classification contribution to scientific community
Refereed No
Date 26 March 2014
Publisher World Scientific Publ.
Place of Publication Singapore
Number online first
Page Range -
ISSN 1363-9196
ISSN-Digital 1757-5877
Publisher DOI
Depositing User Dr. Jessica Müller-Stewens
Date Deposited 26 Mar 2015 16:29
Last Modified 20 Jul 2022 17:24


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Kuester, Sabine; Hess, Silke & Herrmann, Andreas (2014) The Role of Defaults in Preventing Innovation Rejection. International Journal of Innovation Management, (online first). -. ISSN 1363-9196

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