Abstract: Product innovation is the driving force for a firm’s sustainable growth, and to some degree it shields a company from fierce competition. The current research examines the effect of lighting conditions in retailing environments on adoption of new products. The results of study 1 reveal that consumers in a high (vs. low) lighting condition are more likely to adopt new products. We use the Inquisit software to explore its underlying mechanism in study 2A, and investigate the mediating role of regulatory focus in study 2B. The results show that a high (vs. low) lighting condition provides greater stimulation and evokes promotion focus (vs. prevention focus), which in turn enhances adoption of new products. Study 3 further demonstrates the moderating role of social exclusion in the above lighting effect. The findings in studies 1 and 2 are replicated when social exclusion is absent. However, when social exclusion is primed, this pattern of effects reverses. As a result, consumers show preference for a new product in a low (vs. high) lighting condition. These findings contribute to literature on new-product adoption and effect of atmospherics. They also provide interesting and readily applicable implications for marketing managers in designing their retail atmosphere and introducing or promoting new products.

Key words: lighting, promotion, prevention, social exclusion, new product management