Factors Influencing the Consumer Acceptance of Innovation in Handicraft Products

Abstract

This study investigates the factors influencing consumer acceptance of certain types of innovation in handicraft products. Another aim of the article is construct/scale development applicable to handicrafts because our study collected scale items from other studies and tried to develop constructs applicable to handicraft products. The descriptive analysis through a quantitative cross-sectional consumer survey was applied along with cluster analysis for consumer market segmentation following the acceptance of certain types of innovations. Eight factors were discovered through EFA. The construct scores for authenticity innovation, packaging innovation, value-adding, product improvement, product design innovation, alternative/new materials, quality materials, and technological innovations were used in the cluster analysis. The results show that most consumers are open to accepting innovation in handicrafts. Particularly, consumers prefer those innovations that do not modify the traditional features and characteristics of products, such as authenticity, packaging, and quality-related innovations. However, consumers considered technological innovations as more skeptical. The comparison of socio-demographic profile of consumer segments with their acceptance of innovation indicates that the younger generation and well-educated consumers are more willing to accept innovation in handicraft products. Contrarily, the old-age consumers were unwilling to accept the innovation and prefer to purchase authentic and quality products. Additionally, as income increases, people like more authentic and quality products. This study focused on an emerging topic for handicraft industry, that is, innovation considered controversial, challenging, and received less attention from scholars in past. Further, this study is the first of its kind to explore the consumer acceptance of innovation in handicraft products.