›› 2018, Vol. 30 ›› Issue (9): 97-109,163.

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The Impact of Product Assortment on the Evaluation of Extremely Incongruent New Products

Li Dongjin1, Jin Huizhen1, Zheng Jun2   

  1. 1. School of Business, Nankai University, Tianjin 300071;
    2. School of Economics and Management, Yanbian University, Yanji 133000
  • Received:2016-06-23 Online:2018-09-28 Published:2018-09-29

Abstract:

Highly innovative products may offer consumers greater benefits than incrementally new products, yet they have a higher fail-ure rate. The current research addresses the challenge faced by new products that are extremely different from existing offerings by draw-ing on the theory regarding the evaluation of schema incongruity. The authors propose that consumers' positive evaluation of extremely in-congruent products will increase when firms use strategies that product assortment and thus the likelihood that consumers will be able to make sense of incongruent new products. The results of study 1 reveal that evaluation of visually extremely incongruent new products will increase when retailers display new product by substitute-based (vs. complement-based) assortment, whereas the conceptually extremely incongruent new products will be evaluated more positively by complement-based (vs. substitute-based) assortment. We use the E-Prime software to explore its underlying mechanism in study 2 and study 3. The underlying mechanism is that substitute-based (vs. complement-based) assortment can be processed more fluently and thus facilitate visually incongruity resolution, which leads to more positive evalua-tion. Whereas complement-based (vs. substitute-based) assortment can be processed more fluently and thus facilitate conceptually incongruity resolution, which leads to more positive evaluation. The current research contributes to the research on new product by finding that product assortment is considered to be one of the major factors of consumers' evaluation of new products. We believe this paper could provide useful implications to companies' strategic extremely incongruent new product promotion.

Key words: extremely incongruent new products, substitute-based assortment, complement-based assortment, processing fluency