How does power distance belief influence consumers' new product acceptance? Life satisfaction and social demonstrance as moderators

Abstract

Scholars have not yet established how power distance belief (PDB) influences consumers’ new product acceptance. We examined the relationship between PDB and new product acceptance (i.e., consumers’ preference and attitude), along with the moderating roles of life satisfaction and social demonstrance, and the mediating role of need to belong. Through three studies, our findings show that when life satisfaction was low, consumers with low (vs. high) PDB had a more favorable attitude toward the new products and showed a stronger preference for them. Further, need to belong was a principal mechanism inducing the influence of PDB and life satisfaction on new product acceptance, with the interaction effect being stronger among consumers with high (vs. low) social demonstrance. Our investigation makes important theoretical contributions by expanding the PDB literature, and also has practical implications for marketers in their promotion of new product acceptance. For example, marketers could sell new products in cultures with low PDB or use advertisements to remind consumers of the importance of equality. This will help to prime consumers with low PDB when their life satisfaction is low, thereby enhancing their attitude toward new products