WHEN PERCEPTION ISN'T REALITY: AN EXAMINATION OF CONSUMER PERCEPTIONS OF INNOVATION

Innovation research has received increasing attention as firms attempt to gain an edge over their competitors. Past research has focused on innovation from the organization’s perspective and has yet to consider the impact of consumer perceptions of innovation on purchase intentions. Research suggests firms do not possess an adequate understanding of how consumers interpret firm innovativeness, or the potential benefits associated with being perceived as innovative. This research aims to address the impact of consumer perceptions of innovation on behavioral intentions. A scenario-based study is conducted and the results support the premise that consumer perceptions of innovation lead to increased purchase intentions via the mediating effects of perceived quality and anticipated satisfaction. Implications for managers are presented, as well as areas for future research and study limitations.