The Influence of Perceived Product Innovativeness on Customer

Commitment: An Empirical Study of TPB Theory

Zichen Wang

College of Innovation and Management, Suan Sunandha Rajabhat University, Bangkok, Thailand

Keywords: Perceived Product Innovativeness, Customer Commitment, Theory of Planned Behavior.

Abstract: The study analyzes the elements that contribute to increased customer commitment in China, with the Chinese

brand Vivo as a case study. The advancement of information technology has enabled an increasing number

of people to enjoy the conveniences of the Internet at any time and from any location; the population of online

users is growing; demand for online shopping is increasing, and an increasing number of customers are

gathering information via social media platforms. At the moment, new consumer growth has stalled, and the

expense of acquiring new customers is constantly growing. Therefore, if businesses intend to succeed in the

market, they must focus on their existing target groups, preserve stickiness, and encourage existing client

devotion. After doing data analysis using SmartPLS 3 and SPSS, this study discovered that consumers'

perceived innovativeness of a product would have a positive and statistically significant influence on customer

commitment. The findings of this study are used to develop practical recommendations for e-commerce

platform-based operations and future research initiatives in this area.

1 INTRODUCTION

While the market potential is vast, the new Internet

purchasing scene is more dynamic and evolving,

competition is getting more complicated and tough,

and the introduction of a variety of social media

sources has provided shoppers with more alternatives

(Anshari, Almunawar, Lim, Al-Mudimigh, 2019).

Businesses must develop a loyal consumer base to

maintain a competitive advantage in a dynamic,

competitive environment because it is far less costly

to retain a loyal client than it is to acquire a new one.

This ensures a steady stream of earnings for the firm,

enabling it to compete more successfully in a

competitive market. Customers' ability to participate

in the enterprise value chain circulation process has a

direct impact on a business's performance in today's

competitive market (Wang 2021). This study sought

to quantify the association between perceived product

innovation and customer commitment. Whether

perceived product innovativeness has an impact on

consumer commitment is the question under

investigation in this study.

https://orcid.org/0000-0003-0326-336X

2 LITERATURE REVIEW

2.1 Theory of Planned Behavior

According to the theory of planned behavior, whether

a consumer will engage in an activity is determined

by the customer's own motivation and ability (Hsu,

Chang, Yansritakul, 2017). As seen in Figure 1. The

theory of planned behavior evolved from rational

behavior theory and is now frequently utilized to

investigate customers' behavioral intentions and

actual conduct.

Figure 1: Main variables of the theory of planned behavior.

Wang, Z.

The Inﬂuence of Perceived Product Innovativeness on Customer Commitment: An Empirical Study of TPB Theory.

DOI: 10.5220/0011168500003440

In Proceedings of the International Conference on Big Data Economy and Digital Management (BDEDM 2022), pages 161-165

ISBN: 978-989-758-593-7

161

2.2 Perceived Product Innovativeness

Zhang, Sun, Liu, and Chang (Zhang, Sun, Liu,

Chang, 2020) investigated China's inventive toy

industry. Zhang et al. analyze the methods through

which consumer innovation results in consumers'

willingness to pay via perceived product innovation

and perceived value. Zhang et al. (Zhang, et al., 2020)

discover that perceived product innovation and

consumer innovation contribute to willingness to pay.

Perceived product innovation and perceived social

value are mediating factors in the link between

consumer innovation and consumer willingness to

pay. Additionally, research into the actual innovation

process has proved unequivocally that the success or

failure of new product creation is not simply

determined by the corporation but also by the

subjective opinions of customers about the product's

innovative dimension. Table 1 highlights the

definitions of perceived product innovation obtained

from prior academics in this research.

Table 1: Perceived product innovativeness deﬁnations.

eference Deﬁnition

Kim, Kim, and Hwang (2021)

The subjective view or evaluation of creative conduct based on the

subjective perception of the customer is known as consumer perceived

innovativeness.

Lowe and Alpert (2015)

It is the degree to which customers see a product as original and enhanced

over current alternatives that are referred to as perceived product

innovation.

Al-Jundi, Shuhaiber, and Augustine (2019)

Consumer perception of product innovativeness analyzes the differences

in product innovation from the consumer's viewpoint, unlike objective

study on innovative behavior.

Flores and Jansson (2021)

Perceived innovativeness refers to consumers' subjective views of product

innovation.

2.3 Consumer Commitment

Various scholarly definitions of customer

commitment are summarized and categorized in

Table 2. Even more intriguingly, the definitions of

commitment in marketing seem to be consistent from

the outset, unlike in the area of organizational

behavior, where psychological and behavioral

approaches disagree.

Table 2: Customer commitment deﬁnations.

Reference Deﬁnition

Hur, Kim, and Kim (2018)

Customer commitment is a pledge to continue a commercial connection

etween two o

more trading partners, whethe

implicit o

explicit.

Iglesias, Markovic, and Rialp (2019)

In contrast to other brands, consumer commitment may be characterized

as an emotional or psychological bond with a brand within a product

category.

Rather, Tehseen, Itoo, and Parrey (2019)

In business and organizations, customer commitment refers to the goal of

developing and maintaining a long-term, stable relationship with a

company o

organization.

Jacoby and Kyner (1973)

Customer commitment is defined as the long-term psychological reaction

to a brand that occurs after customers have considered one or more

competing products o

services.

2.4 Hypotheses

Hypotheses are presented in this study based on the

research objective and a review of the literature.

Hypothesis: Perceived product innovativeness

has a positive impact on customer commitment.

3 METHODOLOGIES

3.1 Research Structure

In accordance with Figure 2, the structure was

developed in accordance with a prior literature

analysis and the theory of planned behavior. The

framework incorporates two variables: perceived

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162

product innovativeness and customer commitment, as

well as a hypothesis concerning the link between the

two variables and the hypothesis. Because of the

logical foundation of the idea offered in this research,

it is simpler to understand.

Figure 2: The conceptual framework of research.

3.2 Research Design

The data for this research was collected via the use of

a self-administered questionnaire. Everything from 1

(strongly disagree) to 7 (strongly agree) on a Likert

scale was evaluated for each of the following

constructs (strongly agree).

4 RESEARCH FINDING AND

DISCUSSION

4.1 Descriptive Statistics

The quantitative research method was used to

disseminate and collect online questionnaires using

social media platforms on the Internet in this study.

This research sent 150 questionnaires, and after

removing those that took less than 30 seconds to

complete, 98 legitimate questionnaires remained,

with a valid recovery rate of 65.33 percent. Table III

and Figure 3 indicate that females outnumbered men

by a little margin, with 48 males (48.98 percent of the

total) and 50 females (51.02 percent of the total

number).

According to Table 3 and Figure 4, the age

distribution of Vivo brand smartphone users is

dominated by consumers aged 40-49, with 36

individuals accounting for 36.7 percent of the total

number, and by consumers under the age of 20, with

only nine individuals accounting for 9.2 percent of

the total number.

Table 3: The Gender Distribution of Samples.

Gender Number Percentage（%）

Male 48 48.98

Female

50 51.02

Figure 3: The gender distribution of samples.

Table 4: The age distribution of samples.

Age Number Percentage（%）

Below 20 9 9.2

21-29 15 15.3

30-39 28 28.6

40-49 36 36.7

50 and above 10 10.2

Figure 4:

The age distribution of samples.

4.2 Measurement Model

As shown in Table 5, all item loadings were more

than the suggested threshold of 0.6 (Hair, Sarstedt,

Ringle, Gudergan 2018). As shown in Table I, the

results of the construct reliability test indicate that the

CR values of all items are more than the intended

threshold of 0.7. The average variance extracted

(AVE) value exceeds the suggested threshold of 0.5

for the total amount of variation in the indicators

accounted for by the latent construct (Hair, et al.,

2018). In summary, the measuring scale used in this

investigation is valid for convergence. The square

root (diagonal value) of the AVE for each structure is

larger than the associated correlation coefficient,

indicating that the structure has the proper

discriminant validity. The factor loadings and cross-

Perceived Product Innovativeness Customer Commitment

The Inﬂuence of Perceived Product Innovativeness on Customer Commitment: An Empirical Study of TPB Theory

163

loadings of the measurement model are shown in

Table 7.

Table 5: Validity and reliability for constructs.

Constructs Items Loadings

Cronbac

h's alpha

CR AVE

Customer

commitment

CC5 0.829

0.890

0.93

0.822

CC6 0.944

CC7 0.941

Perceived

Product

Innovativene

PCI1 0.797

0.759

0.86

0.673

PCI10 0.802

PCI2 0.861

Table 6: Discriminant validity.

Constructs

C1 C2

Customer

commitment

0.970

Perceived

Product

Innovativeness

0.759 0.821

a. Values on the diagonal (bolded) are the square root of the AVE, while the off-

diagonals are correlations.

Table 7: Factor Loadings and Cross Loadings for the

Measurement Model.

Items Customer

commitment

Perceived Product

Innovativeness

CC5 0.829 0.750

CC6 0.944 0.650

CC7 0.941 0.642

PCI1 0.684 0.797

PCI10 0.517 0.802

PCI2 0.644 0.861

a. Values on the diagonal (bolded) are the square root of the AVE, while the off-

diagonals are correlations.

4.3 Structural Model

The findings of the data analysis performed using

SmartPLS are shown in Figures 5 and 6, respectively.

In the case of the structural model, as indicated in

Figures 5 and 6, the results of hypothesis testing may

be obtained by a study of the model. In this study, the

relationship between the components is studied.

Table 8 summarizes the findings of the structural

route analysis performed using SmartPLS. Customer

commitment was favorably and significantly

impacted by perceived product innovativeness (β =

0.759; t = 17.265; p < 0.001). As a result, hypothesis

1 was validated.

Table 8: The structural path analysis result.

Constructs

Relationship

Beta

Value



Values

Perceived Product

Innovativeness ->

Customer

Commitment

0.759 17.265 1.360 0.000

Table 9: Predictive relevance (Q

SSO SSE

Q² (=1-

SSE/SSO)

Customer

Commitment

354.00

139.27

0.607

Perceived Product

Innovativeness

354.00

234.04

0.339

Figure 5: Structural model assessment

Figure 6: Effect size.

5 CONCLUSIONS

This research aims to determine if there is a

correlation between product innovation and customer

commitment as perceived by customers of Vivo-

branded smartphones. As a consequence of the data

BDEDM 2022 - The International Conference on Big Data Economy and Digital Management

164

breakdown described above, this chapter discusses

the results and management implications before

giving appropriate suggestions and pointing to future

study topics. According to the conclusions of this

study's data analysis, brand reputation is known to

impact consumer commitment. This conclusion is

consistent with Foroudi, Jin, Gupta, Foroudi, Kitchen

(Foroudi, Jin, Gupta, Foroudi, Kitchen, 2018) and

other researchers' findings, indicating that companies

with a strong brand reputation are more likely to

generate significant customer loyalty and recurrent

purchases of the brand's goods and services (Foroudi,

et al., 2018). Since regular customers not only help

businesses perform better they also reduce marketing

expenses, companies can increase customer loyalty

by actively innovating their product lines. This will

give them an advantage over other brands of similar

products and give customers a stake in the service

delivery process. As a way to enhance the company's

own value benefits and competitiveness, businesses

nurture loyal customers as part of their human

resource management strategy.

Research limitations and suggestions are included

in this study, which aims for rigor in its approach

design but is still vulnerable to external influences.

It is proposed that future studies might look at

other brands or sectors in order to further understand

the link between perceived product innovation and

consumer loyalty, even though this study focuses on

Vivo-branded smartphones.

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