IMPACT OF INNOVATIONS ON CONSUMERS’ BEHAVIOUR: A CASE STUDY OF PAK ELECTRON LIMITED (Published)
Innovations play a key role in changing behavior, purchasing habits and improving living standard of customers. In this era of stiff competition, innovation is the only toil through which business firms do not only fight a war of survival but also obtain competitive advantage. This is the reason that business firms particularly high-tech companies spend billions of dollars every years on research and development (R&D) and development of new products and services keeping in view the changing needs and demand of the customers. The objective of this study is to investigate how innovation affects the behavior of customers and which factors motivate the customers to adapt innovation. Main research question of this study is to measure the impact of innovation on consumer behavior with special reference to electronic industry. We have taken Pak Electron Company Ltd, which is a market leader in Pakistan and manufacturing different electronic products and marketing them since 1956. In order to measure the behavior of consumer towards innovation products we have taken a sample of 200 male & female customers between the ages of 18-65 years. The data which was primary in nature, was collected through field survey and a questionnaire was structured for this purpose. Face to face interviews were conducted. A standard likert scale was used to analyze data. This scale is commonly used for analysis in qualitative studies. S-Curve model was used to measure the innovations made or introduced by Pak Electronics Ltd in collaboration with other leading electronic companies of the world. Our study evidence prove that the effect of innovations are significant on the behavior of customers and 75% of respondents endorsed that innovative electronic products attracted and have brought positive change in their behavior and living standards.
Keywords: Customer behavior, Innovation, R&D, S-curve, purchasing intention