Being the Same and Different: A Model Explaining New Product Adoption Yaron Timmor, Ph.D. Academic Head of Business Studies Raphael Recanati International School of Business Head, Marketing Communication Program Arison School of Business Interdisciplinary Center Herzliya (IDC) P.O.B. 167, Herzliya 46150 Tel: +972-9-960-2716, +972-3-643-8660 Fax: +972-9-956-8605, e-mail: timmor@idc.ac.il http://www.idc.ac.il/lecturers/yaron.timor Tal Katz-Navon, Ph.D. Arison School of Business Interdisciplinary Center Herzliya (IDC) P.O.B. 167, Herzliya 46150, Israel Tel/fax: +972-9-952-7349 e-mail: katzt@idc.ac.il 2 Being the Same and Different: A Model Explaining New Product Adoption Abstract The study suggests an alternative conceptualization for understanding adoption behavior over time, based on Optimal Distinctiveness Theory (Brewer, 1991), which states that social identity derives from a fundamental tension between human needs for validation and similarity to others—the need for assimilation—and a countervailing need for uniqueness and individuation—the need for differentiation. The present study proposes that the effect of the size of the group of consumers who have already adopted a new product on an individual consumer’s decision to adopt this product is contingent upon the consumer’s two predispositions: the need for assimilation and the need for distinctiveness. Results of empirical research suggested that differently perceived subgroup sizes fulfill consumers’ dual needs for distinctiveness and assimilation differently. The influence of the adopters’ group size on a consumer’s decision to adopt a new product varied among individuals with different levels of needs for distinctiveness and assimilation: when need for distinctiveness was low, the higher was the need for assimilation and the larger was the perceived group size, the higher was the probability of adopting the product. When the need for distinctiveness was high, the lower was the need for assimilation and the larger was the perceived group size, the lower was the probability of adopting the product. In addition, when the need for distinctiveness and assimilation were both high, the probability of adopting the product rose as the perceived group size increased. Implications for product variation, marketing communication, and target groups are discussed. Key Words: New Product Adoption, Diffusion, Need for Distinctiveness, Assimilation, Majority and Minority Influence 3 Introduction Marketing studies are continually looking to understand consumer decisions to adopt new products (Bearden & Etzel, 1982; Grier & Deshpande, 2001; Sheth, Minttal & Newman, 1999). Studies of new product adoption have used two main approaches to explain consumers’ adoption behavior. One approach uses aggregate models, which examine consumers after the diffusion process of a new product is completed. These models are based mainly on time and order of adoption along the product diffusion process (Bass, 1969; Mahajan, Muller, & Srivastava, 1990). For example, these models classify consumers as innovators who adopt a new product early in its lifecycle, early adopters, or early and late majority (Rogers, 1976; Rogers & Shoemaker, 1971). Some studies associate the first group of adopters (i.e., innovators) with other personality traits such as being opinion leaders (Midgley & Dowling, 1993; Summers, 1970), socially active, involved, and venturesome (Danaher, Bruce, Hardie, & William, 2001; Gatignon & Robertson, 1985; Horski, 1990; Labay & Kinnear, 1981; Rogers & Shoemaker, 1971). However, these studies characterize the individuals in the various categories post ante, and do not explain why particular individuals choose to adopt at a certain time or attempt to predict adoption behavior before the innovation is introduced. A second approach uses contingency models, which seek to explain and predict individual adoption behaviors by exploring a consumer’s personal predispositions and how these dispositions interact with specific situations (Kenrick & Funder, 1988; Migdley & Dowling, 1993). The present study suggests an alternative conceptualization for understanding adoption behavior. The model argues that the effect of the size of the group of consumers who have already adopted a new product on the consumer’s decision to adopt this product is contingent upon the consumer’s two predispositions: the need for assimilation and the need for distinctiveness (Brewer, 1991; 1993). 4 Optimal Distinctiveness Theory (ODT; Brewer, 1991) suggests that social identity is activated in order to meet competing needs for differentiation of the self from others and inclusion of the self into social collectives. Both differentiation and inclusion are powerful social motives or drives. Social identity derives from a fundamental tension between the human needs for validation and similarity to others—the need for assimilation—and a countervailing need for uniqueness and individuation—the need for differentiation. These two fundamental needs are independent, i.e., individuals need both a specific level of similarity to and differentiation from others at a certain time. Optimal distinctiveness can be viewed as a compromise between assimilation and differentiation from others (Brewer, 1991). The study starts by reviewing the main findings of the influence of group size on adoption behavior. It then discusses Optimal Distinctiveness Theory (Brewer 1991, 1993) and the two predispositions of need for distinctiveness and need for assimilation. These needs’ moderating effects on the relationship between perceptions of group size and adoption behavior are explained theoretically. Finally, the empirical research is presented, discussing the theoretical and managerial implications. The influence of perceived group size on adoption behavior The proposed model is based on the assumption that all related individuals are part of a group in regards to a specific content such as product, service, opinion or idea. Each individual belongs either to the subgroup that has already adopted the new product or to the subgroup of individuals that has not adopted it. Whichever group the individual belongs to is the ‘ingroup’, while the other group is the ‘outgroup’. The numerical size of each subgroup constantly changes as individuals move from one subgroup to the other. Majority and minority subgroups constantly influence each other members’ behaviors and attitudes (De Vries et al., 1996; Prislin, Limbert & Bauer, 2000; Tan, Wei, Whatson, Clapper & McLean, 1998), mainly through group norms and social pressure (e.g., Asch 1955; 5 Bond & Smith 1996; Deutsch & Gerard, 1955; Kruglanski & Webster, 1991) and minority dissent (Moscovici, 1985; 1976; Nemeth, 1986). When exposed to majority influence, a minority is likely to experience substantial conformance pressure that causes it to focus on the majority position. This induces compliance behavior (Mackie, 1987). In addition, studies suggested that individuals tend to believe that the majority position implies correctness and what is right, discounts uncertainty, or justifies decisions (Baker & Petty, 1994; Gardikiotis, Martin & Hewstone 2005; Shuper & Sorrentino, 2004; Tan et al., 1998). This apparent majority influence increases as the majority subgroup size increases (e.g., Asch, 1955; Tanford & Penrod, 1984). Consumer behavior studies have discussed the influence of group size on customers’ justification and adoption behavior (Burt, 1987; Mackie, 1987; Tan et al., 1998). The term bandwagon effect (Leibenstein, 1950) describes a behavioral propensity to follow the crowd. Applied to the adoption of new products, the bandwagon effect predicts that consumers are more likely to adopt a new product if they perceive a higher level of adoption by other consumers in the marketplace. In this context, the bandwagon effect may work through two related processes: A purely cognitive process may produce inferences regarding the quality of the product; if many consumers have adopted the product, it must be effective, good or valuable. Emotional or social processes may also reduce the perceived risk of adoption; there is less social risk in adopting a product if many other consumers have already adopted it. A bandwagon effect exists when consumers derive a benefit from using a brand that is popular (Hellofs & Jacobson, 1999). Becker (1991) noted that the use of some goods involves a social aspect in that people use or consume the brand in public. The bandwagon effect predicts that adoption likelihood increases as the perceived number of adopters in the relevant reference group increases (Bass, 1969; Mahajan, Muller, & Srivastava, 1990, Rogers, 1983). 6 Individuals tend to compare their decisions and behaviors to others that serve as their reference groups (Hoch & Loewenstein, 1991). Reference theory (Stafford, 1971) refers to the notion that comparison groups are used as frames of reference by individuals to determine their own self status or relative position in a social system. Empirically, Asch’s (1955) experiments of majority influence on individuals and the studies that followed used small anonymous reference groups at a single time point (e.g., Clark & Maass, 1990; Prislin et al., 2000: Tanford & Penrod, 1984). The individuals in these groups knew exactly how many members belonged to which subgroup (majority vs. minority). However, very often a commercial firm’s target groups tend to be large, with relatively weak relationships among members. In large groups, consumers cannot accurately estimate the size of their reference group that has adopted the product and whether this group of adopters constitutes a majority or a minority. Consequently, consumers would base their behavior on their perceptions of the group sizes. The following is hypothesized: H1. In large groups, the perceived level of new product adoption among member of the relevant reference group will have a positive effect on an individual’s propensity to adopt a new product. -------------------Insert Figure 1 about here ---------------------- Needs for distinctiveness and assimilation and group size The question is who is moving from one subgroup (i.e., non-adopters) to the other (i.e., adopters), and why. 7 Consider the following example: A customer enters the store looking for a pair of pants. She looks at one bright red pair. Aiming to help her make her decision, the sales person says, “I see that you have very good and unique taste. Most buyers don’t look at the red ones. They prefer the blue ones.” She mumbles, “Mmm, I can understand why… I’ll think about it and come again next week.” Then, another customer enters the store and looks at the red pants. This time, the sales person hesitates to repeat her mistake and instead says, “It’s interesting, most of my clients this week were interested in these red pants and many bought a pair for themselves”. In response, the costumer also leaves the store but this time mumbles, “Well, I’ll go to look for something that other people don’t have.” In the former situation, the fact that only a minority of customers bought the product influenced the customer’s decision not to buy the product, while in the latter situation the fact that the majority of customers bought the product influenced the customer’s decision not to buy it. Whether identification with a particular social group satisfies simultaneously both the need for assimilation and the need for distinctiveness depends on this group’s level of inclusiveness, i.e., the number of persons that can be classified as members of the same group. There exists an optimal group size in which both needs are satisfied. This optimal level is a function of the relative strengths of the opposing drives for assimilation and differentiation (Brewer, 1993). It is important to point out the differences between the needs for assimilation and distinctiveness and other individual characteristics that have been discussed in the marketing literature in relation to adoption behavior. Most studies examined factors such as product knowledge (i.e., interest in the product, reading related magazines, social activity), reliance on peers (i.e., seeking advice when purchasing new products), opinion leaders (i.e., giving advice to others), and educational level (Bass, 1969; Gatignon & Robertson 1985; Mahajan et al., 1990). Among these studies, conformity (Burt, 1987) and need for uniqueness (Snyder & 8 Frankin, 1977; Tian, Bearden, & Hunter, 2001) have more relevance to attitudes toward majority and minority subgroups. Conformity refers to a change in beliefs or behaviors based on real or perceived group pressures (Blackwell, Miniard, & Engel, 2006). Need for uniqueness refers to counter-conformity (Nail, 1986). These concepts differ from the needs for assimilation and distinctiveness in the following manner: Conformity is measured on a continuum from the conformers to the counter-conformers. Thus, an individual cannot be a conformer and a counter-conformer simultaneously. Assimilation and distinctiveness on the other hand are independent of each other, which means that an individual can have a high need for assimilation and for distinctiveness at the same time (Brewer, 1993). In addition, conformity is associated with loyalty; individuals show high conformity when they stick to their subgroup whether it is the “small minority” or the “large majority”. Assimilation however, is fulfilled within large groups while distinctiveness is fulfilled within small groups (Brewer, 1991). It is proposed that the two needs for distinctiveness and assimilation influence individuals’ adoption behavior. For each new product, a consumer may belong either to the subgroup of people who have already adopted the product or to the subgroup that has not yet adopted it. The size of each of these two subgroups changes over time as more individuals adopt the product. As the subgroups’ sizes change, so do their levels of inclusion, i.e., their ability to satisfy consumers’ needs for assimilation and distinctiveness. Since each individual has different levels of the two needs, different group sizes satisfy the needs of different individuals. The need for distinctiveness is concerned with personal identity that differentiates one individual from others within a given social context. Larger subgroups are more inclusive social units that de-personalize the self-concept that is “where I become We (Turner et al., 1987, p. 50). As more and more people adopt a new product or idea along the diffusion 9 process, the adopters group size increases. Hence, as the subgroup size increases, it cannot satisfy individuals’ need for distinctiveness and the individual is less able to satisfy his/her need for distinctiveness. Thus, the following is hypothesized: H2: The individual’s need for distinctiveness moderates the relationship between the individual perception of the size of the group of people that already adopted the product and the individual’s decision to adopt the product: the higher the individual’s need for distinctiveness and the larger the perceived group size, the lower the probability that the individual will adopt the new product. Some individuals need to feel “the same” as the other group members (Brewer, 1991). Along the diffusion process, when more and more group members adopt a new product or idea, one perceives one’s behavior as similar to many others. The adopters’ group size increases, and consequently, the individual is better able to satisfy his/her need for assimilation. Thus, the following is hypothesized: H3: The individual’s need for assimilation moderates the relationship between the individual perception of the size of the group of people that already adopted the product and the individual decision to adopt the product: the higher the need for assimilation and the larger the perceived group size, the higher the probability that the individual will adopt the new product. We assert that consumers will adopt a new product when they perceive that a certain number of consumers have already adopted the product and this number optimally satisfies their dual needs to be assimilated in the ingroup and differentiated from the outgroup. An 10 individual with a high need for distinctiveness and low need for assimilation will adopt a product when s/he perceives that only a small number of consumers have already adopted it. In a group of potential customers, an individual with a high need to be distinct from others and a low need for inclusiveness within the group behaves in a way that emphasizes that s/he is different. To ensure that the adoption behavior is noticed, this individual will adopt the product when s/he perceive that only a small number of customers have already adopted the product, thus making her/his adoption conspicuous. By adopting a new product or idea when others have yet to adopt it, one explicitly signifies that s/he is not like most other people. As the number of adopters increases, the individual with a high need for distinctiveness is expected to look again for something different and new. These individuals are not necessarily “innovators” or “opinion leaders” (Gatignon & Robertson 1985; Rogers 1983) since they are not necessarily adventurers or risk takers but rather seek to satisfy their high need to be distinct from others. An individual with a low need for distinctiveness and a high need for assimilation will tend to adopt when s/he perceives that many consumers have already adopted the product, and this large group satisfies her/his high need for inclusion. Another option is that the individual’s needs for distinctiveness and assimilation are both high. In this case, this consumer’ desire to be a part of the group is in conflict with his/her aspiration to also be unique. In order to solve this internal conflict, the consumer may wait and adopt the product only later in time, when the number of adopters increases and satisfies his/her need for assimilation. Yet, at the same time, this consumer may look for the product’s least popular style in order to satisfy his/her need for distinctiveness. For example, such a person may buy the most popular brand of jeans in order to satisfy the high need for assimilation, but may prefer the least purchased color to satisfy her/his high need for distinctiveness. 11 Finally, an individual can have both a low need for assimilation as well as a low need for distinctiveness. These individuals may be less susceptible to social influences and be motivated more by personal preferences. These individuals are not necessarily laggards (Rogers, 1983) since their personal needs may influence their decision to adopt the product at any point along the diffusion process. Hence, it is proposed that the needs for assimilation and distinctiveness moderate the relationship between perceived group size and adoption behavior as follows: H4: For individuals with a low need for distinctiveness, the higher their need for assimilation and the larger they perceive the size of the group of people that have already adopted the product to be, the higher the probability that they will adopt the product. H5: For individuals with a high need for distinctiveness, the lower their need for assimilation and the larger they perceive the size of the group of people that have already adopted the product, the lower the probability that they will adopt the product. Methods Participants: A total of 198 students in an academic institute in Israel (80% response rate) answered a questionnaire that was distributed to them at the end of class. The use of students as participants is common in adoption research (for example, Hill et al., 1987; Lee & Allaway, 2002; Lim & Dubinsky, 2004; Timmor & Rymon, 2007). Furthermore, Keen (1999) found no difference in predicting consumer decisions regarding Internet use between students and mall shopper samples. In terms of social group definition (Lickel et al., 2000), the participants in this study belonged to the task and social categories because the students had already studied together in the same study program for about two years and hence, had similar goals and were also engaged in social relations and activities. 12 Procedure: First, a brainstorming meeting of the researchers and three students (who were not part of the study sample) was held to identify new products. It was decided to use three different products that were then relatively new to the market as examples in our questionnaires: a cell phone with a camera, a memory stick, and a new fashion item (in the latter, we instructed participants to “think of a new fashion item that has recently been introduced, such as a shirt or pair of pants”). Technological and fashion items are commonly used in studies of diffusion and adoption behavior (e.g., Mahajan et al., 1990; Miller, McIntyre, & Mantrala, 1993; Tian et al., 2001). Three versions of the questionnaire were composed, one for each of the three products. Each respondent was asked about only one of the three product categories. Next, a pilot study of the three questionnaire versions was conducted among 50 students. Results demonstrated that less than half (15% for the cell phone with camera, 33% for the memory stick, and 48% for a new fashion item) had already adopted the products, implying that the products were actually relatively new to the market. Finally, 240 questionnaires were randomly distributed (80 of each of the three different versions) in six different classes. Measures: Our measures are based on earlier studies when possible. In cases where previous measurements were not available or did not fit the proposed hypotheses, specific measurement tools were developed. Need for assimilation (α = .72) and Need for distinctiveness (α = .83) were each measured with four items based on Brewer (1991, 1993; see Appendix 1 for items). For both scales, responses ranged on a 5-point Likert scale from 1–“do not agree at all,” to 5–“strongly agree.” Perceptions of group size: Participants’ perceptions of the size of the adopters group were measured using the following item: “Think about the students who take the Marketing 13 Research class with you, how many of them do you estimate use a cell phone with a camera (or memory stick or this fashion item)?” Responses ranged on a 5-point Likert scale from 1– “nobody,” to 5–“everybody”. Adoption of the new product was measured by the following item: “Do you have a cell phone with a camera (or a memory stick or this fashion item)?”; responses were either yes or no. Opinion leader was measured using five items and Risk taking was measured using two items (see Appendix) adapted from Goldsmith and Hofacker (1991; α = .72 and α = .76, respectively). Responses ranged on a 5-point Likert scale from 1–“do not agree at all,” to 5– “strongly agree.” Control variables: (1) In order to control for necessity or utilization of the product (Bearden & Etzel, 1982), we included perceptions of product necessity: “in your opinion to what extent is the product essential?” Responses ranged on a 5-point Likert scale from 1–“not at all,” to 5–“highly”. (2) We used a dummy variable for product type. Results Table 1 presents means, standard deviations and correlations among all variables. Correlations among need for distinctiveness, need for assimilation, and being a risk taker, and an opinion leader revealed no significance (see Table 1). ========================= Insert Table 1 about here ========================== To test the three-factor structure of need for distinctiveness, need for assimilation, and perceived group size, we conducted a Confirmatory Factor Analysis (CFA) using the CALIS procedure of SAS. The analyses were performed on variance-covariance matrices with 14 pairwise deletion of missing values. The CFA yielded an acceptable fit level (Hu & Bentler, 1999) of χ2(29, N = 190) = 44.43, p = .03, GFI = .95, CFI = .96, RMR = .08, and RMSEA = .05. All the standardized factor loadings in the model were above .60 (the majority of the loadings were between .60 and .70). Next, in order to test the hypotheses, we applied a Logistic Regression Analysis to examine the behavior of those who had and those who had not adopted the product. The independent variables were perceived group size, need for assimilation, need for distinctiveness, product type, and product necessity, the three two-way interactions of assimilation and perceived group size, distinctiveness and perceived group size, and assimilation and distinctiveness, and the three-way interaction of assimilation, distinctiveness and perceived group size. ========================= Insert Table 2 about here ========================== Results demonstrated (Table 2) that the logistic regression was significant (p< .01), as was the prediction validity of 82.4%. All the main effects and interactions were significant, supporting the hypotheses. In order to graphically depict the three-way interaction, which demonstrated the moderating effects of needs for distinctiveness and assimilation on the relationships between perceived group size and adoption behavior, we followed the graphing procedure outlined by Aiken and West (1991; see Figures 2 and 3). ========================= Insert Figures 2 & 3 about here ========================== The probability of adopting a new product by consumers with a low need for distinctiveness increased the larger they perceived the group size of adopters to be and the higher was their need for assimilation (Figure 2). The probability of adopting a new product for consumers with a high need for distinctiveness decreased the larger 15 they perceived the group size of adopters to be and the lower their need for assimilation was (Figure 3). In addition, the probability of adopting a new product by consumers with both a high need for distinctiveness and a high need for assimilation increased in tandem with an increase in the perceived group size. Discussion This study adds several tiers to the understanding of the theory and practice of consumer behavior in adopting new products: The study proposes alternative motivations derived from Optimal Distinctiveness Theory to explain and forecast customer behavior in the context of new product adoption. This model follows the contingency approach, and theorizes that the effect of group size on adoption is moderated by whether the particular group size satisfies the person’s need for assimilation and for distinctiveness, and their interaction. While most other studies of minority and majority influence used small groups mainly in laboratory settings (for example, Asch, 1955; Prislin et al., 2000; Tanford & Penrod, 1984), the present study was conducted within relatively large groups. When the group is large and individual group members cannot correctly estimate the numeric value of the majority and the minority subgroups, there is a perceived minimum group size that supports the individual’s behavior rather than a numeric majority or minority. Since it is difficult for individuals to estimate the exact group size, they consider whether the group is ‘big or small enough’ for their particular needs. The study results suggest that consumers’ perceived size of the adopters’ group had a positive direct effect on the former’s behavior such that the higher the perceived group size was, the more consumers were inclined to adopt the new product. This finding supports the literature that emphasizes that a perceived large group of adopters may justify and reinforce the decision to adopt; moreover, as the perceived adopter group size increases, so may the 16 pressure to join this group and follow its behavior (Gardikiotis et al., 2005; Mackie, 1987). Another rationale for joining large groups as regards information technology might be the ‘network effect’. For example, the larger the group of consumers who have a cell phone, the larger is my utility to communicate with a cell phone and hence I will tend to buy one. On the other hand, if only a few people have a videophone, then I am unlikely to buy one. Scholars in the field of diffusion of innovation have argued for the existence of various individual characteristics that can influence adoption behavior (Danaher et al., 2001; Gatingnon & Robertson, 1985; Migdley & Dowling, 1993). Our results suggest that the individual’s needs for distinctiveness and assimilation co-exist simultaneously within the same individual, and also influence the consumer’s decision to adopt new products. In addition, the study results demonstrate that these two needs had a low and non significant correlation with the concepts of opinion leaders and risk takers, which were previously discussed in the marketing literature in regard to new product adoption. In this study, the effect of group size on the consumer’s decision to adopt a new product was contingent on the consumer’s optimal distinctiveness needs: The three-way interaction of perceived group size and needs for distinctiveness and assimilation was significant. The change in adoption behavior (from non-adopter to adopter) occurred as a result of the interaction between the consumer’s perceptions of the adopters’ group size, and his/her individual needs for distinctiveness and assimilation. The different perceived group sizes fulfilled the needs for distinctiveness and assimilation differently and hence, impacted the group’s ability to affect adoption behavior differently. It appears that while, in general, the group’s size has a positive effect on individual consumer’s decision to adopt a new product (Gardikiotis et al., 2005; Mackie, 1987; Rogers, 1983), its influence varies among individuals with different levels of distinctiveness and assimilation needs. 17 The literature on majority influence on adoption behavior suggests that the majority influences decisions through social pressure and the bandwagon effect, while also discounting uncertainty, (Baker & Petty, 1994; Gardikiotis, Martin & Hewstone, 2005; Shuper & Sorrentino, 2004; Tan et al., 1998). This study’s results suggest a qualitatively different explanation for majority influence on consumers’ decisions to adopt new products — that the need for assimilation is more fulfilled in large groups (Brewer, 1993). As the individual perceives that more members have adopted the product, her/his need for assimilation is better satisfied by being within this group. Indeed, our results demonstrated that when the consumer’s need for distinctiveness was low and the need for assimilation was high, the probability of adopting the product increased as the perceived group size increased, better fulfilling this higher need for assimilation. On the other hand, the need for distinctiveness is more fulfilled in small groups (Brewer, 1993), where the individual perceives that fewer members have already adopted a product. Our results show that when the consumer’s need for distinctiveness was high and the need for assimilation was low, the probability of adopting the product decreased as the perceived group size increased – no long fulfilling the higher need for distinctiveness. To date, most studies on product adoption have focused on when an individual will adopt the product, and little attention has been given to individuals who have already abandoned it (e.g., Mahajan et al., 1990; Midgley & Dowling 1993; Rogers, 1976). Theoretically, our model suggests that abandonment behavior can occur when consumers have a high need for distinctiveness and a low need for assimilation. They are most prone to abandon the product and move to another one when they perceive that the group of adopters has grown too big to fulfill their high need for distinctiveness. When both the need for assimilation and need for distinctiveness were high and the perceived number of adopters was high, it may be presupposed that consumers will be 18 conflicted internally as to whether to adopt the new product. On one hand, they might feel encouraged to adopt the product because the perceived majority satisfies their high need for assimilation. However, alternatively, they may feel disinclined to adopt the product due to the fact that many people have already adopted it and their need for distinctiveness would thereby not be satisfied. Our results demonstrate that the probability that consumers with both a high need for assimilation and a high need for distinctiveness will adopt the product increased as the perceived number of adopters increased. One potential explanation for this finding may be the context of the present study. Since the three products used were relatively new, less than fifty percent of the participants had already adopted them at the time of the study. Hence, the perceived group size still had some ability to fulfill the need for distinctiveness but had already reached a size that would fulfill the high need for assimilation. For example, the consumer with a high need for distinctiveness and a high need for assimilation may adopt the product because “I am not the only one who buys the product, yet not everyone has already purchased it”. A high need for assimilation may encourage the consumer to buy a well-known brand (e.g., Levi’s jeans) yet a high need for distinctiveness may push the customer to prefer a less common color or design. Finally, consumers with a low need for distinctiveness and a low need for assimilation were just as likely to adopt the product even as the perceived group size increased. The term self-monitoring refers to the extent to which individuals regulate their behaviors based on external events such as the reactions of other people or based on internal factors such as their own beliefs, attitudes, and interests (Snyder, 1974). Consumers with a low need for distinctiveness and a low need for assimilation may be low self-monitors, hence, indifferent to the external influence of others. These individuals’ decisions to adopt a new product may involve internal factors such as individual taste and preferences. Another potential 19 explanation may be that these consumers are less socially involved; consequently, they are less aware of and affected by the behaviors of others. Future Research First, the present study was conducted among business students. It would be interesting to examine such a diffusion process in other population segments. Second, we used three types of different socially visible products and received similar patterns of results for the three of them. For further validation of the proposed model, we suggest testing it with other types of products, for example, less visible products such as hygiene products. Third, participants were surveyed in a specific period. While the relatively short period enabled us to better control the process, a longer research period may enable deeper examination of the diffusion process along time. Finally, the study was conducted among a Western and modern population. Predispositions such as the needs for distinctiveness and assimilation may be affected by cultural factors. Hence, it is worth replicating it across different cultures. Implications and Conclusions Researchers and practitioners are constantly dealing with the question of what affects consumers’ decisions to purchase new products. This study suggests that potential buyers deciding about purchasing a new product consider the number of consumers that have already adopted the product ad hoc. In large target groups, what is important is the perceived number of adopters rather than the real majority or minority actually adopting. Hence, consumers may under- or over-estimate the number of adopters. Marketers can reduce disinformation by communicating to potential customers (through advertising, PR activities) the actual number of adopters. Customers with a high need for distinctiveness may respond more positively and buy products when only a small group of customers have adopted it whereas customers with a high need for assimilation will adopt products when many other people are already using it. 20 Thus, although new customers may feel encouraged to adopt a particular product when more and more people are buying it, persons with a high need for distinctiveness may react in the opposite way, and avoid using the new product. Moreover, such customers may in fact abandon the product and move to a different one. In order to retain these customers, it is important to consider introducing to the market new variations of a product earlier in its life cycle, or to constantly offer new variations of a product. In addition, for customers with a high need for distinctiveness, there should be a further focus on product and image differentiation. Variation can also be suitable for the customers with high needs for both assimilation and distinctiveness. However, when dealing with customers with a high need for assimilation, more concern should be given to the “being the same” factor, which emphasizes that many have already adopted the product, revealing that others think and behave the same way (i.e., product item, color). The model can be more easily applied with customers’ clubs and B-to-B, since these marketing platforms allow closer relations with clients and hence, make it easier to analyze their needs and the subgroups’ composition. 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(1987). “Rediscovering the Social Group: A self-Categorization Theory“, Oxford: Blackwell. 26 Table 1 – Means (Std) and Correlations Means (Std) Need for Need for Perceived Assimila- Distinctive- Group tion ness Size Product Opinion Necessity Leader Need for Assimilation 2.33 (.69) Need for Distinctiveness 2.60 (.78) -.08 Perceived Group Size 1.73 (1.21) -.01 -.01 Product Necessity 2.59 (1.12) 2.57 (.70) 2.39 (.93) .031 -.013 .451* -.026 .191 -.04 -.008 -.164 .048 -.007 .049 Opinion Leader Risk taker * p < .05 .093 27 Table 2: Results of a Logistic Binominal Regression Categorical Dependent Variable – Adopted vs. Did Not Adopt the Product Model 1 (B Coefficient) Model 2 (B Coefficient) Model 3 (B Coefficient) Product Type (1) 2.26** 1.92** 1.09* Product Type (2) .93** 1.37** 1.39* Product necessity .27** -.39* -.65* Need for Assimilation .84** 1.89** Need for Distinctiveness .42* 1.12* -.49** 3.04* Factors Perceived Group Size -.55† Need for Assimilation x Need for Distinctiveness Need for Assimilation x 1.62* Perception of Group Size Need for Distinctiveness x -1.34* Perception of Group Size Need for Assimilation x Need .61* for Distinctiveness x Perception of Group Size Model Statistics -2 log likelihood Chi square Correct classification ** p<.01 * p<.05 † p< .1 214.42 160.30 140.07 51.75 (3 d. f, p .01) 100.31 (6 d. f, p . 01) 115.54 (10 d. f, p . 01) 69.3% 79.3% 82.4% 28 Figure 1: The Conceptual Model and Hypotheses Need for Assimilation Need for Distinctiveness H3 Perceived Group Size H2 H5 H4 H1 Consumer Adoption Behavior 29 Figure 2: Log of Purchase Probability on Perceived Group Size, Need for Assimilation, and Low Need for Distinctiveness 2.4 High assimilation 2.2 2.0 Log of Purchase 1.8 Probability 1.6 Low assimilation 1.4 1.2 1.0 Low High Perceived Group Size 30 Figure 3: Log of Purchase Probability on Perceived Group Size, Need for Assimilation, and High Need for Distinctiveness 2.0 1.8 Log of Purchase Probability 1.6 High assimilation 1.4 1.2 1.0 Low assimilation 0.8 0.6 0.4 Low High Perceived Group Size 31 Appendix 1 Responses ranged on a 5-point Likert scale from 1–“do not agree at all,” to 5–“strongly agree.” Need for Assimilation It is important to me to behave like my friends I usually dress the same as my friends I usually listen to the same music that most of my friends listen to I usually go to the same movies that most of my friends go to Need for Distinctiveness I think differently than most of my friends I tend to associate with people who are different and unique It is important to me to be different, unique, unconventional I think that I am different than most of my friends Opinion Leader Other people ask for my recommendations before they buy a new music record Other people consider my opinion before they buy a fashion item People ask for my advice before they buy new products People whom I know rely on my recommendations when they buy new products I often convince people to buy CDs with music I like Risk taker I like to take risks I like to try new and different things