Upgrade Product Purchase Decision

Masmira Kurniawati, Tanti Handriana

2017

Abstract

Innovation has been a key to every company’s success, so has been upgrading company’s existing products. However, market reaction to upgrade product could be unpredictable. This paper tries to explain consumer’s tendency in purchasing upgrade product. Specifically, this paper tries to investigate consumer’s tendency in purchasing upgrade product when it is similar vs. dissimilar with existing product and also when it is alignable vs. non alignable with existing product. Product review of previous version of upgrade product (positive vs. negative) is used to confirm that upgrade product evaluation is affected by performance of previous version. Experimental design is used with 299 participants. The results show that when consumers have purchased a product, a dissimilar upgrade product will more likely be purchased than a similar upgrade product, while when consumers have purchased a product, a nonalignable product will more likely be purchased than alignable upgrade product. Product reviews play an important role in this particular purchase decision i.e. when consumers have purchased a product and receive a positive review on the previous version of dissimilar product, dissimilar upgrade product will be more likely purchased than similar upgrade product and when consumers have purchased a product and receive a positive review on the previous version of nonalignable product, nonalignable product will be more likely purchased than alignable product. Based on the result of this study, marketers would understand how consumers come into a purchase decision of upgrade product so they can design the right marketing tools.

Paper Citation

in Harvard Style

Kurniawati M. and Handriana T. (2017). Upgrade Product Purchase Decision.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 384-389. DOI: 10.5220/0007082703840389

in Bibtex Style

@conference{iciebp17,
author={Masmira Kurniawati and Tanti Handriana},
title={Upgrade Product Purchase Decision},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={384-389},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007082703840389},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Upgrade Product Purchase Decision
SN - 978-989-758-315-5
AU - Kurniawati M.
AU - Handriana T.
PY - 2017
SP - 384
EP - 389
DO - 10.5220/0007082703840389