Authenticity and the innovation of traditional products

Innovation is crucial for companies to meet consumer expectations. However, the success rate of launching innovated products is under 41%. No empirical explanation currently exists pertaining to how consumers react when a traditional product is innovated, whether authenticity perceptions of the innovation influence purchase intention and perceived gain from the innovation and whether perceptions of traditionality impact authenticity perceptions. A conceptual framework was developed and tested quantitatively to address these gaps, using two different stimuli, in three countries. The study provides evidence for hypothesised relationships between product traditionality, congruence of innovation, authenticity, perceived gain from the innovation, and purchase intention and was analysed using SEM. Results indicated that traditionality perceptions significantly influence authenticity perceptions which in turn significantly influences purchase intention and perceived gain from the innovation.