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Article history:
Received 22 January 2015
Received in revised form
22 June 2015
Accepted 17 August 2015
Available online 29 August 2015
This study explores three important factorsdmental simulation, innovativeness, and need for cognitiondto determine the effects of these factors on the perception of newly developed branded applications. The study identies two types of mental simulation (process-focused and outcome-focused),
innovativeness (early and later adopters) and need for cognition (low and high) to inform items used to
survey respondents about their willingness to adopt new branded apps and their attitudes towards the
focal brands.
The study demonstrates the effects of mental simulation, innovativeness, and need for cognition on
adoption of the branded app. This experiment improves our understanding of how three-way interaction
between the abovementioned factors affects the intention to adopt a new branded app. The results of a
MANOVA indicated statistically signicant effects of the abovementioned three-way interaction on the
dependent variables. It is anticipated that the analysis resulting from this valuable study will provide a
point of reference for further empirical and theoretical studies on the development of information
technology products and services.
2015 Elsevier Ltd. All rights reserved.
Keywords:
Brand application
Mental simulation
Process simulation
Outcome simulation
Innovativeness
Need for cognition
1. Introduction
Today's dynamic business environment is pushing many rms
to develop more efcient and effective ways of developing and
marketing new products and services. Although many rms have
dedicated considerable effort to understanding the determinants of
new product success and failure, the successful development of
innovative new products tends to be the exception rather than the
rule (Cooper, 1996; Sethi, Smith, & Park, 2001). Companies from a
variety of industries have recognized developing innovative new
products as the cornerstone of success and as an essential factor for
surviving in today's markets (Envik & Wall-Mullen, 2009). Innovative new products that support marketing success allow consumers to do something they have not been able to do before (Zhao,
Hoefer, & Zauberman, 2011). Companies from a wide range of
industries, including automobiles, electronics, and information
technology have learned to use the captive audience provided by
marketing communication channels to commercialize their product innovations. Generally speaking, consumers tend to have less
knowledge about and greater performance uncertainty concerning
innovative new products (Hoefer, 2003) as well as negative inferences about such products and new product evaluation
(Mukherjee & Hoyer, 2001). Consumers rely more on inferences
with high learning costs when evaluating highly innovative attributes in highly complex products (Mukherjee & Hoyer, 2001). To
capture the learning process involved in evaluating new product
innovations, this study uses mental simulation as a variable. Consumers engage in mental simulation to reduce the effort involved in
evaluating newly developed products (Zhao, Hoefer, &
Zauberman, 2007).
As corporations strive to develop new strategies for marketing,
advertising, and running promotions in response to these changes
in digital lifestyles and consumer trends, the need for smart marketing platforms has increased accordingly. Despite growing demand for brand appsdsoftware programs whose content is used to
deliver product and brand information to consumers and
encourage aggressive participation and interactions between the
consumer and the branddfew studies have focused on the development of user-friendly brand strategies and consumer responses
to brand apps. Predicting consumer responses based on personality
traits is becoming crucial in designing new brand apps. Relevant
personality traits include innovativeness and need for cognition
(hereafter NFC), which have been shown to inuence consumers
when adopting new products. Consumer acceptance of new products can be affected by the relationship between consumer innovativeness or new technology adoption and NFC.
In addition to personal consumer traits, other factors that
stimulate consumer purchase intention include advertising and
promotions that contingently evoke a purchase situation. In promotional activities, consumers are stimulated to visualize a virtual
or hypothetical circumstance, and that process is called mental
simulation (Taylor & Schneider, 1989). Because a wide range of
factors seem to affect simulation results, it is important to identify
factors that inuence mental simulation in a way that makes it
conducive to generating desirable attitudes and behaviors in consumers. In this study, we wanted to verify the effects of consumer
innovativeness and need for cognition on mental simulation results. Thus this study attempts to demonstrate the differential effects of process- and outcome-focused thinking generated by
innovativeness and NFC. The study also explores three-way interaction between mental simulation, innovativeness, and NFC as a
factor affecting intention to adopt a newly developed brand app
and consumer attitude towards the associated brand.
2. Literature review
2.1. Brand application environment
The role of digital applications that deliver a brand's messagingdbrand appsdis expanding beyond offering a new kind of
product experience to consumers. Brand apps are designed to run
on smartphones or tablet PCs with the aim of promoting and selling
goods and services. The role of brand apps has expanded dramatically with the advent of smartphones and tablet computers that
are equipped with super-fast Internet connections, highly functional hardware, a large touchscreen display, a vibration sensor, and
global positioning system (GPS) functionality.
Brand apps offer more than a product or service experience, as
they are crafted to address consumer lifestyles and eventually
deliver a brand experience. A brand app is useful for strengthening
connections with customers through instantaneous interaction,
making it an important marketing tool, regardless of its role in
providing information (Marc, 2002). Therefore, with the growing
use of mobile platforms for brand promotion, the development of
brand apps reecting consumer needs has increased, and investigation appears necessary to determine the actual effectiveness of
those apps. Brand apps that run on smartphones offer both
cognitive and behavioral experiences in which the former is associated with the acquisition of product information and knowledge,
and the latter involves exploring products using virtual reality
technology. Moreover, user experiences and product information
collected from brand apps can be shared through social network
services (SNS) such as Facebook, leading to affective and relational
experiences. In particular, brand apps for 3D virtual mobile devices
provide users with rich sensory experiences while exploring virtual
products in a realistic way.
Independently of its use in marketing, the concept of gamication has emerged as a means of enhancing the user experience by
engaging users in game-like behavior. Gamication has recently
drawn attention as a new marketing technique as well. Gamication is the addition of the game design concept to non-game contexts such as websites based on user interest or applications such as
human resources portals to encourage users or employees to
participate in various activities. As the gaming population has
steadily increased based on the basic human desire to play, the use
of gamication extends to real-world problem-solving beyond its
role in enhancing virtual entertainment.
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marketing situations when a new product is launched. It is estimated that consumer adoption behaviors for a new and innovative
product are affected by personality traits and that the effects of
mental simulation vary with the type of mental simulation involved.
Given that mental simulation requires cognitive thinking and
limits cognitive resources, low motivation and cognitive ability can
mitigate the effects of mental simulation (Shiv & Huber, 2000).
Mental simulation is an imagination-inducing perceptual experience
using simulation scenarios created in a virtual environment, making
cognitive thinking essential. NFC has been shown to have varying
effects on mental simulation (Escalas & Luce, 2004). Individuals high
in NFC formed more favorable evaluations of a highly innovative new
product under the outcome-focused simulation condition than under the process-focused simulation condition. However, individuals
low in NFC demonstrated no signicant differences in product
evaluation under either simulation condition. We therefore investigated how NFC is associated with mental simulation.
3. Hypotheses
Consumer innovativeness serves as a crucial element at the time
of adoption of a new product or service. As demonstrated in earlier
studies, innovativeness can be treated as a process variable that
affects time of adoption and the diffusion of new products and
services. Early adopters have a tendency to enjoy new experiences,
ranging from cognitive stimulation-seeking to complex problemor puzzle-solving. Therefore, outcome-focused simulation is likely
to be more effective than process-focused simulation for testing
new brand apps. In general, later adopters have a stronger tendency
to seek a sense of safety, whereas early adopters tend to focus more
on functional and symbolic end benets than uncertainty when
adopting an innovation. We therefore predicted differential effects
of process-focused and outcome-focused simulation and also predicted that early adopters would be more likely to have positive
perceptions to inform product attitudes and adoption intentions
than late adopters.
H1. All other things being equal, subjects who are exposed to an
outcome-focused mental simulation versus those exposed to a
process-focused mental simulation are more likely to form:
a) stronger intentions to adopt the application, and
b) favorable attitudes toward the brand.
H2. All other things being equal, early adopters (with higher
innovativeness) are more likely than later adopters to form:
a) stronger intentions to adopt the branded apps, and
b) favorable attitudes toward the brand.
Consumers high in NFC and innovativeness focus on explanations, facts, and how things work and are interested in understanding mechanisms when doing new things. They like to be
involved in situations that require a lot of thinking and understanding of cause-and-effect relationships and exercise their
cognitive abilities (Haugtvedt & Petty, 1992). Such consumers try to
nd information on a new product, evaluate its performance, and
familiarize themselves with how it operates and how they can use
it. Previous studies have claimed that consumer attitudes towards
new products are predictable based on cognitive responses when
consumers are high in NFC. However, consumer attitudes are not
predictable for those low in NFC (Haugtvedt & Petty, 1992). That is,
a signicant association between the degree of cognitive response
and consumer attitudes was observed in consumers high in NFC;
they try to learn something from a new product and purchase it to
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4. Research methodology
4.1. Pilot study and pretesting of the brand apps stimuli
The study selected two apps from cosmetic brands, which are
innovative in design and methods, as experimental stimuli. We
chose the selected brand apps because they encourage user participation and make consumers feel fullled with amusing content and
competition for rewards. A pretest was conducted with 35 students
from the business administration department at a Korean university
to assess innovative features of the selected apps. The assessment
items included: this brand app is created with new methods and
this brand app's design and function are innovative (Ali, Krapfel, &
Labahn,1995). Each response was measured on a 5-point Likert scale
(i.e., Very Unlikely to Very Likely, with Cronbach's a .823). The
results of the pretest in which a brief explanation and photos were
presented revealed that the level of innovation that respondents
perceived in the brand apps with gamication was high (M 3.89),
making the apps valid as experimental stimuli.
4.2. Experimental design and procedure
The experiment was conducted using 288 college and graduate
students from the college of business administration at a Korean
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4.3. Measurements
Pre-existing items developed by Escalas and Luce (2004) were
used to verify whether the simulation scenarios were executed as
intended. Two items were modied and organized into four items
to measure simulation exercisesdtwo items each for process- and
outcome-focused simulation, respectively: I focused on the process of using the new brand app; I focused on how I would use the
new brand app; I focused on why I would use the new brand
app; I focused on the benets that would be provided by this
brand app.
The measurement tools for innovativeness and NFC used in the
study were veried by their use in a previous study. An adopter
characteristics questionnaire was developed from generalizations
about innovativeness (Rogers & Shoemaker, 1971). Moore and
Benbasat (1991) noted that the questions through which the instrument was used were tested for reliability and validity and were
developed with respect to a particular IT innovation for a particular
audience. The researchers suggested that they could be easily
reworded by substituting the names of alternative IT innovations
(Moore & Benbasat, 1991). The adopter characteristics questionnaire used in this study was a slightly altered version of a ve-point
Likert scale, 16-item instrument developed by Moore and Benbasat
(1991) and Rogers (2003).
Eighteen items were selected on the basis of factor loadings,
item total correlation, and item difculty, while maintaining a
multi-faceted scale. Participants had to check-mark their agreement or disapproval on a ve-point scale (with 1 indicating
strongly disagree and 5 indicating strongly agree). Cacioppo,
Petty and Kao (1984) developed a 34-item Need for Cognition
Scale (NCS) which was reduced to an 18-item scale in order to increase its administrative efciency (MacKenzie & Lutz, 1989). Factor
loading and Cronbach's alpha are described in Table 1.
Based on assessment results regarding levels of innovativeness
and NFC, the items on these two variables were used for calculating
indices, and the median was used to split respondents into two
adopter categories based on their level of innovativeness, forming
an early adopter group and a later adopter group. NFC was
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Table 1
The EFA of innovativeness and NFC.
Construct
FL
Survey measures
Innovativeness
.872
.769
.652
.725
.760
.659
.817
.671
.714
.748
.716
.743
.723
.752
.669
.789
.748
.714
.699
.743
.775
.722
.642
.711
.725
.702
.683
.767
.684
.689
.681
.692
.753
.657
.714
.739
Dependent
Variables
Wilks's
Lambda
d.f
.968
4.66
(1, 288)
.010
.975
3.55
.030
.961
.979
.990
.998
.980
5.64
3.00
1.39
.321
2.83
.004
.051
.250
.726
.061
of innovativeness at a marginally signicant level for attitude towards the brand, supporting H2b (F[1, 288] 3.06, p .081). Thus,
H2a and 2b were supported.
As seen above, hypotheses 3a and 3b predicted that subjects
with low NFC are more likely than those with high NFC to from a
strong intention to adopt the application and a favorable attitude
toward the brand. Hypothesis 3a was not supported (F[1,
288] .204, p .652). However, the main effect of degree of NFC
(e.g., low and high NFC) was signicant on attitude towards the
brand (F[1, 288] 8.22, p < .05). Thus, H3b was supported, but H3a
was not supported.
Hypothesis 4 predicted a three-way interaction effect of mental
simulation, degree of innovativeness, and NFC on the dependent
variables. As shown in Tables 2 and 3, the interaction effects are
marginally signicant (Lambda .980, F(1, 288) 2.83, p .061).
The types of mental simulation, degree of innovativeness, and level
of NFC, respectively, were statistically signicant for intention to
adopt and attitude towards the brand (F[1, 288] 4.13, p < .05, F[1,
288] 5.07, p < .05). Thus, H4 was supported. In addition, there was
no two-way interaction effect of mental simulation, innovativeness,
and NFC on intention to adopt or attitude towards the brand.
However, there was statistically signicant two-way interaction
between types of mental simulation and degree of innovativeness
NFC on intention to adopt the branded app (F[1, 288 5.71, p < .05).
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Table 3
Results of between-subjects analysis by condition.
Treatment (mean/S.D)
Mental Simulation (A)
Innovativeness (B)
D.V
Outcome (2.63/.07)
Process (2.55/.08)
Outcome (2.81/.08)
Process (2.50/.08)
Early (2.73/.07)
Late (2.45/.08)
Early (2.76/.08)
Late (2.56/.08)
Low (2.61/.07)
High (2.56/.08)
Low (2.82/.80)
High (2.50/.08)
Outcome
Early (2.65/.12)
Late (2.62/.09)
Process
Early (2.82/.09)
Late (2.28/.13)
Outcome
Early (2.85/.12)
Late (2.78/.10)
Process
Early (2.66/.09)
Late (2.35/.13)
Outcome
Low (2.71/.10)
High (2.56/.11)
Process
Low (2.52/.10)
High (2.58/.11)
Outcome
Low (2.95/.10)
High (2.68/.11)
Process
Low (2.69/.11)
High (2.32/.12)
Early
Low (2.72/.10)
High (2.74/.11)
Late
Low (2.51/.10)
High (2.39/.12)
Early
Low (2.91/.11)
High (2.60/.11)
Late
Low (2.72/.11)
High (2.40/.12)
Outcome
Early
Late
Process
Early
Late
Outcome
Early
Late
Process
Early
Late
.450
p
.612
.435
Brand
6.29
7.75
.006
Intention
5.23
7.11
.008
Brand
2.49
3.06
.081
Intention
.150
.204
.652
Brand
6.67
8.22
.004
Intention to Adopt
4.20
5.71
.018
.940
1.16
.283
Intention to Adopt
.753
1.02
.313
.124
.152
.697
Intention to Adopt
.304
.413
.521
.001
.001
.972
Treatment (mean/s.d/n)
Mental Simulation Innovativeness Need for Cognition (A B C)
MS
Intention
Low (2.80/.66/31)
High (2.49/.85/25)
Low (2.62/.81/49)
High (2.61/.90/42)
Low (2.64/.84/43)
High (3.04/.98/49)
Low (2.39/.86/29)
High (2.17/.87/20)
Low (3.11/.68/31)
High (2.59/1.2/25)
Low (2.79/.81/49)
High (2.76/.83/42)
Low (2.72/.92/43)
High (2.61/.94/49)
Low (2.66/.99/29)
High (2.04/.82/20)
D.V
MS
Intention to Adopt
3.03
4.13
.043
4.12
5.07
.025
Mental Simulation (Outcome versus Process) Degree of Innovativeness (Early versus Later) Level of Need for Cognition (Low versus High) Scales for mean scores are from 1
to 5 with 5 being most positive. n 288.
focused mental simulation are more likely to form favorable attitudes towards a brand than are those exposed to process-focused
mental simulation. However, there were no signicant differences
by type of mental stimulation regarding intention to adopt a brand
app. Still, the study found that outcome-focused thinking more
positively inuences brand attitude than process-focused thinking.
Hypothesis 2 was also supported by the nding of signicant
effects of innovativeness on respondents' adoption intentions and
brand attitudes towards a brand app. Early adopters (high in
innovativeness) formed stronger positive adoption intentions and
brand attitudes toward a brand app compared with late adopters,
and their behavioral attitudes were more positive than were those
of later adopters.
689
690
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