Table 1.

Concepts that deal with innovation vs. differentiation

Theories that deal with innovation vs differentiationConceptual descriptionExample
Social identity theory and consumptionAccording to the social identity theory, individuals might seek products that enhance their group status or personal identity, which might be innovative but not necessarily luxurious or expensiveKleine, Kleine, & Kernan (1993) 
Innovation and consumer behaviorSome research suggests that consumers are often attracted to products that provide a sense of uniqueness and social differentiation. This does not always require the product to be expensive or luxurious
Innovation can be a key driver if it offers newness or exclusivity, which satisfies the need for distinctiveness in social groups
Li, Wang, Li, & Liao (2021) 
Affordable innovationsA growing segment of consumers value innovative features over luxury branding These consumers are driven by the functionality and uniqueness of the product rather than its price or luxury statusKlink and Athaide (2010) 
Source(s): Based on literature review

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