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Determinants of consumers’ frugal innovation acceptance in a developed country

Leonor Costa (FEUP, Porto, Portugal)
Aurora Teixeira (CEF. UP, FEP & INESC TEC, Universidade do Porto, Porto, Portugal)
Ana Brochado (ISCTE – Instituto Universitário de Lisboa, Lisboa, Portugal)

Young Consumers

ISSN: 1747-3616

Article publication date: 17 May 2021

Issue publication date: 7 July 2021

296

Abstract

Purpose

This study aims to understand why young people are interested in buying frugal innovations.

Design/methodology/approach

Data were collected with a survey administered to 534 university students enrolled in various fields of study (e.g. sciences, technology, economics and fine arts). Using the Tata Nano car as an example of frugal innovation, a model based on the unified theory of acceptance and use of technology was developed using partial least squares structural equation modeling.

Findings

The model’s results reveal that effort expectancy, performance expectancy and facilitating conditions are critical factors that explain university students’ intention to buy Tata Nano.

Originality/value

Although frugal innovations are often introduced first in developing countries, frugal innovations could be highly relevant to users in developed nations as these innovations can provide market opportunities in terms of cost-conscious, relatively low-income and sustainability-conscious consumers.

Keywords

Acknowledgements

Funding: Aurora Teixeira’s research has been financed by Portuguese public funds through FCT – Fundação para a Ciência e a Tecnologia, I.P., in the framework of the project with reference UIDB/04105/2020.

Citation

Costa, L., Teixeira, A. and Brochado, A. (2021), "Determinants of consumers’ frugal innovation acceptance in a developed country", Young Consumers, Vol. 22 No. 2, pp. 185-201. https://doi.org/10.1108/YC-10-2020-1223

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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