THE EFFECT OF AFFECTIVE VERSUS COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGEMENT A Thesis Presented to the Faculty Of ISM University of Management and Economics In Partial Fulfillment of the Requirements for the Degree of Master of International Marketing by Justina Unguraitytė May 2015 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 2 Abstract Purpose – the aim of this research is to evaluate the effect of different types of information – affective versus cognitive - on product innovation’s judgements. Furthermore, the effect of main moderators (affective vs. cognitive information) was aimed to be investigated through the product innovation attributes and attitude toward product, which were taken in the research as the main pridictors. Theoretical findings – theoretical analysis uncovered that the product innovation judgment is mostly associated with the cognitive process where customers use information with the purpose to reduce the uncertainty. Despite this, increasing importance of innovations in a highly competitive market caused that both scholars and practitioners had engaged in a long maintained investigations with the purpose of more comprehensive understanding of process that customers use while judge product innovations. Due to this, it was found that significant findings of psychologists and neuroscience specialists caused the increasing interest to investigate the process of product innovation judgment in the perspective of affective process. Methodology approach – a quantitative research method an experiment was applied with the interaction of moderation effect. After the pre-experiment was conducted one product innovation with two types (affective vs. cognitive) of advertisements were selected for the main experiment to perform. Research findings – findings indicated that affective information provided in the way of advertisement had more positive (as opposed to cognitive) influence on the effect between product innovation attributes, attitude toward product and overall product innovation judgment. Keywords – affective information, cognitive information, information behavior, product innovation judgment, product innovation adoption, affective-based ads., cognitivebased ads., product innovation attributes, attitude toward innovation. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 3 Table of contents Abstract………………………………………………………………………………………..2 Table of contents……………………………………………………………………………....3 List of tables…………………………………………………………………………………...6 List of figures………………………………………………………………………………….7 Abbreviations………………………………………………………………………………….8 Introduction…………………………………………………………………………………....9 Literature review……………………………………………………………………………..13 Key concepts identification………………………………………………………………13 Body of literature………………………………………………………………………...14 Innovation………………………………………………………………………………..14 Defining innovation……………………………………………………………………...14 Classification of innovations…………………………………………………………….16 Development of successful innovation…………………………………………………..18 Innovation judgment……………………………………………………………………..20 Innovation adoption process……………………………………………………………..20 Innovation attributes……………………………………………………………………..25 Affective and cognitive information……………………………………………………..28 Defining information and information behavior…………………………………………28 Affective and cognitive decision making regarding information use……………………30 Interplay of cognitive and affective factors………………………………………………32 Affective and cognitive communication strategies for successful innovation judgment...34 Problem definition………………………………………………………………………..39 Summary of the theorethical conceptualization………………………………………….39 Problem identification……………………………………………………………………42 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 4 Research methodology………………………………………………………………………44 Research model development and hypothesis formulation……………………………..44 Research method………………………………………………………………………..50 Experiment selection…………………………………………………………………....50 Analytical framework for moderation effect…………………………………………....50 Research process………………………………………………………………………..52 Pre-experiment………………………………………………………………………….53 Design of the randomized manipulation check…………………………………………53 Affective and cognitive information as advertisements………………………………...53 Selection of product innovations and advertisements…………………………………..54 Aim and hypothesis of manipulation check…………………………………………….57 Sample and procedure of manipulation check………………………………………….57 Result of the manipulation check……………………………………………………….58 Experimental design…………………………………………………………………….63 Identification of moderators roles………………………………………………………63 Methodology of experiment…………………………………………………………….64 Techniques for statistical data analysis…………………………………………………64 Procedure of experiment………………………………………………………………..65 Empirical research results…………………………………………………………………..66 Research model representativeness and multivariate data assumptions………………...66 Results of experiment…………………………………………………………………...75 Comparing moderation affect of affective and cognitive information to product innovation judgment……………………………………………………………………76 Effect of affective information to product innovation judgment (as opposite to cognitive information) with predictors of product innovation attributes…………………………77 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT Effect of affective information to product innovation judgment (as opposite to cognitive information) with predictors of attitude toward product…………………………....77 Conclusion of the research results…………………………………………………..78 Discussion…………………………………………………………………………….....80 Synthesis of research findings…………………………………………………….....80 Implications for theoretical understanding of product innovation judgment………..82 Implications for theoretical understanding of affective and cognitive information....83 Implications for innovation management…………………………………………....85 Limitations…………………………………………………………………………...86 Suggestions for future research……………………………………………………...86 Conclusion……………………………………………………………………………….88 References……………………………………………………………………………….90 Appendices……………………………………………………………………………..102 5 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 6 List of tables Table 1. Classification of innovations…………………………………………………….....17 Table 2. Overview of product innovations attributes analyzed in literature………………....39 Table 3. Overview of the most recent studies supporting the significant role of affective factors in customers information use and decision making………………………………….41 Table 4. Hypotheses formulation…………………………………………………………….46 Table 5. Product innovations for manipulation checks……………………………………....55 Table 6. Advertisements for manipulation checks…………………………………………...56 Table 7. Abbreviations of advertisements…………………………………………………....56 Table 8. Hypothesis of manipulation check……………………………………………….....57 Table 9. Student’s criteria for testing hypotheses of Innovation1’s’s advertisements……….60 Table 10. Student’s criteria for testing hypotheses of Innovation2 advertisements………….61 Table 11. Student’s criteria for testing hypotheses of Innovation3 advertisements………….61 Table 12. Descriptive statistics of evaluations affective-based and cognitive-based advertisements…………………………………………………………………………….….63 Table 13. Hypotheses of the simple model…………………………………………………..68 Table 14. Correlations in regards with the simple model…………………………………....69 Table 15. Multivariate data of the simple model…………………………………………….70 Table 16. Hypothesis of interaction terms between product innovation attributes…………..72 Table 17. Multivariate data of the improved model………………………………………….73 Table 18. The effect of affective vs. cognitive information on product innovation judgment.. ………………………………………………………………………………………………..76 Table 19. Evaluation of the hypotheses……………………………………………………...79 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT List of figures 7 Figure 1. Main differences of ‘System 2’ and ‘System 1’ suggested by D. Kuhgneman…...37 Figure 2. Direct and indirect effect of Ad-evoked feelings to product or brand attitude…...38 Figure 3. Research model…………………………………………………………………...47 Figure 4. Statistical moderator model applied for the present study..……………………..51 Figure 5. Research process outline……………………………………………………….....53 Figure 6. Product innovation judgment with the simple model…………………………......68 Figure 7. Innovation judgment with the improved model…………………………………..71 Figure 8. Final results of experiment (moderation effect of Ads3affective vs. Ads3cognitive through product innovation attributes and attitude toward product)………………………..75 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT Abbreviations IDM Innovation Diffusion model TAM Technology Acceptance theory DPM Innovation – Decision Process model IB Information behavior SMH Somatic Marker Hypothesis ISP Information Search process SBIT Social – Information Technology model VS. Versus ADS. Advertisements 8 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 9 Introduction Challenges that companies are facing in an extremely competitive, politically and economically uncertain world became one of the main reasons why the extensive spectrum of scientific studies and practices regarding the importance of the innovations started to grow dramatically. In respect to this, companies must find the ways to innovate in order to respond to the changing customer demands, lifestyles or simply for taking into account all opportunities offered by technologies and the changing market (Rowley, Beregheh, Sambrook, 2011). Consequently, the market started to be occupied by a variety of radically new products that suggest for the customers to believe in the prominence of the endless range of new human’s needs which are sometime artificially created by marketers. This has particularly caused the situation where numbers of marketing discussions evolved with the aim to understand the processes that consumers experience while trying to evaluate innovations. Much of the existing studies support the approach that innovation adoption is directly related to the uncertainty reduction process (Davis, 1989; Flight, D’Souza & Allaway, 2011; Art, Frambach & Bijmolt, 2011). It is clear from the previous researchers, that customers tend to analyze risks and benefits (Saaksjarvi & Morel, 2010) while gathering and considering information with the purpose of making the evaluation decision of the innovation (Roger, 2003). In addition, even feelings are perceived as having a significant influence on human’s decision making, although many previous researchers maintained their central focus on the analytical process in the innovation adoption (Wood & Moreau, 2006). Subsequently, in such a global knowledge and technological economy innovation started to be seen as key success factor for creating a strong competitive advantages (Johanessen & Skaalsvik, 2015; Ettlie, Groves, Vance & Hess, 2014; Inauen & Schenker-Wicki, 2012; Hassanien&Dale, 2012; Gremyr, Lofbero, Witell, 2010; Lidgren, Saghaug, Knudsen, 2009; Salavou, 2004; THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 10 Johnson, 2001; Johannessen, Olsen, Lumpkin, 2001; Evangelista, McKinnon, Sweeney 2013). Due to this, the need for comprehensive exploration of processes in which customers engage in order to assess innovation is defined as one of the highest priorities of recent scholars. Needs to be mentioned, that growing academic interest in understanding the effect of both affective and cognitive factors in the innovation adoption process is the meaningful contribution not only to the innovation adoption literatures but also for a totally new sphere of neuromarketing, because clues of psychology and neuroscience in the mentioned topic is recognized in numbers of studies (Kings & Slovic, 2014). Meanwhile, from the practical perspective it helps for a professional marketing specialist to understand what makes the biggest influence to the customer’s decisions to adopt or not to adopt the innovation. Accordingly, such information might play a fundamental role for preparing marketing strategy for future innovations. This research investigates the effect of affective and cognitive information on the product innovation judgment. Currently, one side of the researchers explains innovation adoption as a bottom-up cognitive process, other side tries to find alternatives while building their approach on more affective factors. However both sides support classical models such as Roger’s innovation diffusion theory (2003), theory of planned behavior (Ajzen, 1991), the technology acceptance model (Davis, 1989) or theory of reasoned action (Fishbein & Ajzen, 1975; Sheppard, Hartwick & Warshaw, 1988) who claim that during the adoption process customers gather and consider information in order to make adoption decision. In respect to this, recently little attempts were conducted with the aim to explore how information provided in different types – affective versus cognitive – effects the overall product innovation judgments. Partly, the present study will fill this gap while continuing the work started by one of the most recent studies implemented by Kings and Slovic (2014); there THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 11 central focus was to explore affect heuristic in product innovation judgment, but no manipulations with real product communication to the overall evaluation of the product innovation were done. The underlying research question is: what is the effect of cognitive versus affective information on product innovation judgment? Findings of the study contribute for both theoretical understanding of consumer’s evaluations of product innovations as well as affective and cognitive information. Obviously, it provides for marketers useful practical findings which might help to prepare effective communication strategy for the certain innovation. Hence, the aim of the research is to explore the effect of different types of information - affective versus cognitive - on product innovation’s judgements. This aim leads to the objectives provided below: 1. To provide comprehensive literature review on the theoretical grounding of the innovation judgment and affective and cognitive factors in terms of information use. 2. To design and conduct empirical research in order to examine how information provided in different style (affective versus cognitive) effects the judgment of product innovation. 3. To explore the results of empirical research providing statistical analyzes of the date received. 4. To discuss managerial implications of the research findings and provide the guidelines for the future research and practical recommendations for marketers. The experimental research going to be adopted to the study. The method enables the researcher to control and manipulate independent variables that effect experimental group which is not possible by using survey or past data (Soo & Oo, 2014). The latter is extremely important in exploration of the specificities of customer’s behavior in terms of their reactions THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 12 to technological product innovations. Moreover, design of experiments is defined as powerful tool for generating valid, supportable findings for improving various of process (Firka 2011). Following this, the method really can help to reach useful insights for marketers that are engaged in the creation process of innovations. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 13 Literature Review Key Concepts Identification The chapter of the literature review is based on numbers of objectives that need to be achieved. Working definitions of the key concepts ‘innovation judgement” and “affective and cognitive information” are going to be identified through taking into account varieties of definitions and conceptualizations in the relevant prior and most recent literature. Need to empathize that significantly increased attention of academics to the mentioned concepts caused the extensive line of approaches that require to be specified for the context of affective and cognitive information impact to the product innovation judgment. In particular, for the purpose to answer the research question different types of literature such as research studies, theoretical articles and editions, reviews or case studies are going to be taken into considerations. Consequently, the first chapter consists of four main subsections with the aim to ensure the consistent way to arrive to a comprehensive understanding of key concepts. Accordingly, the purpose of the innovation section is to clearly define the concept “innovation” in order to ensure the comprahensive discussion in the second section where analysis will be continued with the concept “innovation judgment” . Analysis will be conducted through a review of the literature, which discusses topics from the innovation definitions itself to the overall innovation adoption process. While the third section is dedicated for the concept “affective and cognitive information” to delineate through sequential analyzes regarding widespread approaches of customer information behavior to affective and cognitive constructs. The section closes with conclusions of theoretical conceptualizations, which leads to the main problem identification that is tend to be solved for the purpose of this research. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 14 Body of Literature Innovation. Defining innovation. Challenges that companies are facing in such extremely competitive, politically and economically uncertain world became one of the main reasons why the amount of scientific studies regarding various types of innovations started to grow dramatically. Companies must find the ways to innovate in response to changing customer demand and lifestyles, or simply for turning to account all opportunities offered by technologies, changing market places, structures and dynamics (Rowley, Beregheh, Sambrook, 2011). Consequently, in such a global knowledge and technological economy innovation started to be seen as key success factor because of its ability to create a strong competitive advantages (Johanessen & Skaalsvik, 2015; Ettlie, Groves, Vance & Hess, 2014; Inauen & Schenker-Wicki, 2012; Hassanien & Dale, 2012; Gremyr, Lofbero, Witell, 2010; Lidgren, Saghaug, Knudsen, 2009; Salavou, 2004; Johnson, 2001; Johannessen, Olsen & Lumpkin, 2001; Evangelista, McKinnon, Sweeney, 2013). Due to the widespread recognition of the importance of innovation, numerous of researchers started to provide various approaches regarding definitions of innovation and its types. Following early literature (Roger, 2003) innovation can be described as “an idea, practice, or object that is perceived as new by an individual or other unit of adoption”, should be underlined that this definition is strongly supported by numerous of current researchers too (King & Slovic, 2014; Flight, D’Souza, Allaway, 2011; Saaksjarvi, 2003). The same time Doran (2012) presents innovation as “an iterative process initiated by the perception of a new market and/or new service opportunity for a technological-based invention which leads to the development, production and marketing tasks striving for the commercial success of the invention”. From this perspective, innovation process can be considered as iterative and with different levels of innovativeness (Garcia & Calantone, 2002). In this respect, the first introduction of innovation is not the same as reintroduction of an improved one (Doran, 2012). Several THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 15 authors provide one more approach and define innovation from two perspectives “as a transversal organizational process, or as an outcome embodied in the final offer and referred to as product innovation” (Fort-Rioche & Ackerman, 2013). In a relationship to this, the distinction between product innovativeness from organizations’ point of view and from the market perspectives must be identified (Fort-Rioche & Ackerman, 2013; McNally, Cavusgil, Calantone, 2010; Calantone, Chan, Cui, 2006). Even more concepts of innovations could be provided, however such a diversity of approaches creates ambiguity and confusions, while consensual definition would help to avoid numerous of miscommunications in both academic and business fields (McAdam, Raid & Gibson (2004); Rowley et al., 2011). Need to be empathized that most prevailing definitions of innovation more or less are focused on the newness and novelty. Hence one more shortcoming such as a lack of accordant measures of innovation’s newness can arise (Johannessen et al., 2001; Blyth, 1999). Accordingly, following both early and the most receant literature the concept of newness can be explained by individuals’ reaction to a new idea (Roger, 1983; Hristov & Reynolds, 2015). the mentioned reaction directly correlates with five perceived attributes (relative advantage, compatibility, complexity, trialability, and observability) of innovativeness by which customers supposedly judge innovation during the decision-making process (Roger, 1962). Whereas more later studies suggest that newness consists of several components that are addressed by three sub-questions: what is new, how new, and new for whom? (Johannessen et al., 2001). In this respect, innovation should be seen as a single continuum, which includes all three mentioned aspects. Although the approach more exceptionally empathizes the importance of economic unit, that has the possibility to evaluate the level of innovations’ newness regarding scope and size (new for whom). While another scholar (Salavau, 2004) provides even more distinct perception regarding measurement of innovation and assumes newness as a subjectively defined, incorporated element of THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 16 innovation rather than some kind of measurement. Subsequently, the term innovativeness is conceived as a key negotiable expression and not necessarily is used interchangeably with innovation, but it also can be distinguished from the other and refer to some kind of measure (Salavau, 2004). In correlation with this, innovativeness is the one, which indicates the level of newness of the innovation and should be measured taking into account different types of innovations (Salavau, 2004; Doran, 2012; Garcia & Calantone, 2002; Herrman, Tomczak, Befurt, 2006). This has particularly been the case for the different types of innovation to be identified by extensive spectrum of literature. Classification of innovations. Nearly all comprehensive reviews agree that two types of innovation could be distinguished: “radical” or “incremental” (Hristov & Reynolds, 2015; Szekely & Strebel, 2013; Doran, 2012; Herrman et al., 2006; Dewar & Dutton, 1986; Inauen & Schenker-Wicki, 2011; Bigliardi, Dormio, Galati, 2012). Should be mentioned that such classification is applied for both products or services innovation (Inauen & Schenker-Wicki, 2012). The present study will contribute to the broader scientific understanding regarding product innovation, due to this all further analysis is going to be provided from the product rather than service point of view. To this extent, radical product innovation refers highly new experiences to the customers and new technological solutions to the companies (Herrman et al., 2006; Aboulnasr, Narasimhan, Blair & Chandy, 2008). When radical or otherwise discontinuous innovation occurs, significant level of changes appears in the whole industry (Rowley et al., 2011). Subsequently, such kind of innovation has a conspicuous influence for both sides: producers are facing the possibility of new sources of competitive advantage while for customers it brings major changes in their everyday lives regarding economic and social aspects (Heiskanen et al., 2007). Meanwhile, the incremental innovation takes into account minimal improvements regarding technologies and changes in product value for the customers (Herrman et al., 2006). On the basis of one of the latest research paper (Ponnam, THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 17 Sreejesh, Balaji, 2015) even 90% of all new products can be identified as incremental and usually come from the conservative strategies that are focused on small changes in such aspects as product features, price, design, main functions etc. On the other hand, radical and incremental types of innovations are typical extremes that lead to even more deeper debates in terms of understanding what is beyond them (Boregheh et al., 2011). In this respect, one of the relatively recent models suggested by Francis and Bassant (2005) distinguishes four categories for variant types of product (can be applied for services too) innovations: product, process, position and paradigm (Table 1). Table 1. Classification of innovations Product innovations Process innovation Position innovation Paradigm innovation Changes in the Changes in the way Changes in the Changes in the product/service product/service is context in which business model of features, elements. developed and product/service are organization delivered. presented to the regarding customers. product/service provided. Note. From ‘Targeting innovation and implications for capability development,’ by Francis D. and Bessant J., 2005, 25(3), p.171 – 83. The most unique point of such classification is the basis on which innovation types are assorted. Instead of central focus on the extent of changes (level of changes made into the industry) regarding tangibility and visibility of innovation, the concept encompasses all types of innovations used within companies (Baregheh, Rowley, Sambrook & Davies, 2012). In addition, this classification is the only one, which includes such unconventional types of innovation as position and paradigm that can lead to major transformations in the market (Baregheh et al, 2012; Rowley et al, 2011). THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 18 For instance, position innovation can cause even the emergence of new market (Francis & Bessant, 2005), because it is directly related to the modification of the understanding about products while trying to reach another market or new customers’ group (Rowley et al., 2011). In the same time, paradigm, which has some parallel with radical innovation, reframes the way the product is perceived (e.g. “Low – cost” airlines) in the market and means significant changes in the industry (Rowley et al., 2011). Development of successful innovation. It is no wonder that such widespread recognition of the importance of innovation by both academics and practitioners has particularly led to rapidly growing body of literature analyzing what kind of innovation has the greatest potential to create a sustainable competitive advantage. Numerous of examples in the market have shown that even the first mover position that was done by huge corporations such as IBM and its personal computer, NOKIA with their 7650 smartphone and numbers of others, does not guarantee the success of innovation (Basu, 2014). In addition, due to the approach of several authors (Kekäle & Kola-Nyström, 2007) the innovativeness and success leads to the major paradox in business strategy, because the higher level of products’ novelty the higher possibility to fail instead of sustain long-term growth of the company. Consequently, extensive spectrum of approaches in terms of different ways to innovate started to be analyzed. Recently open innovation could be noted as one of the most discussed concepts on this topic and is conceived as an opposite model of the vertical integration (Duarte & Sarkar, 2011; Bellantuano, Pontrandolfo & Scozzi, 2013; Scott & Chaston, 2013; Inauen & Schenker-Wicki, 2012; Schroll & Mild, 2011). While vertical integration model perceives R&D division as a strategicall core in the creation process of innovation (Chesbrough & Appleyard, 2007; Duarte & Sarkar, 2011), the open innovation is in a correlation with external collaboration (Duarte & Sarkar, 2011). After having analyzed the impact of the open innovation method on innovation performance, THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 19 Inauen and Schenker-Wicki (2011) argued that vertical or otherwise called “closed” innovation has reached its limits, because of the rapid increases of tradeability in technologies and intellectual property. This goes hand in hand with premeditated exploration and exploitation of numbers of sources for innovation comes into being (West & Gallagher, 2006). Conceptually, open innovation in contrast with the vertical one, is seen as a an open system with various ways to use the collaboration of external and internal knowledge together, instead of being closed only with the capabilities of R&D division (Duarte & Sarkar, 2011; Jarnepaa & Warnick, 2011). Hence, open system is built on the possibility to apply expertise and technology competencies that are not available inside the company which is directly related to both reduced cost of innovation and sharing the risks (Ballantuano et al., 2013; Jarnepaa & Warnick, 2011; Bigliardi et al., 2012). Meanwhile, Kutvonen (2011) proposes to distinguish even six groups of strategic objectives that companies are tend to target for achieving long-term benefits through external collaboration: gaining new knowledge, learning from knowledge transfer, multiplication of own technologies, controlling technological trajectories, external exploitation as a core business model and higher control power over the market environment. While trying to make it clear what is the main purpose of open innovation, the research study conducted by Scott and Chaston (2013) could be taken into account. These researchers analyzed the performance of companies in Peru in terms of the engagement in the open system. Statistically significant relationship between companies’ results and its involvement in external collaboration were noted. Accordingly, it is reasonable to claim that in the twenty-first century open innovation has become one of the most effective ways to achieve sustaining business performance (Chesbrough, 2007). In addition, the mentioned study confirmed the statement of Lichtenthaler and Lichtenthaler (2009) who stated that the prime benefit of using open system considers to be THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 20 the possibility to enhance companies’ new product development activities. In this line of thought, firms that are operating in developed economies such as Perus’, are seeking to enhance their performances not only by new products, but also by improving all other areas that are related to their elaborations (Scott & Chaston, 2013). However, collaboration with partners, customers, suppliers, competitors and all other possible external knowledge and technological sources is still perceived as sufficiently risky (Gillier, Kazakci & Piat, 2012). It is so, because partners should be both: different enough in order to provide effective contributions for the mutual purpose from both sides and still have something in common for being able to understand each other. Innovation judgment. Innovation adoption process. Extensive literature reviews and studies were conducted with the central focuses on the innovation adoption process (Plewa, Troshani, Francis & Rampersad, 2012; Sääksjärvi & Morel 2010; Azadegan & Teich, 2010; Flight et al., 2011; Cui, Bao, Chan, 2009; King & Slovic, 2014; Seligman 2006; Hirunyawipada & Paswan, 2006). There is no doubt, that understanding the overall process of how individuals evaluate innovations’ attributes and what are the main factors influencing their decisions, significantly contributes to the companies success while commercializing different types of innovations (Haggman, 2009; McCoy, Badinelli, Koebel & Thabet, 2010). Despite the rapidly growing body of recent studies, early models such as Rogers’s ( 2003) innovation diffusion (IDM) or Davis’s (1989) technology acceptance theory (TAM) still reported as being a starting point for nowadays studies (Sheng, Zolfagharian, 2014; Sheikhshoaei & Oloumi, 2011; Elwood, Changchit, Cutshall, 2006; Kuo & Lee 2009). Nevertheless, much of the recent discussions still appear to be based on trying to identify the possible limitations of the prior theories and uncovering new important insights in order to enhance the perception of innovation adoption process. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 21 For instance, Seligman (2006) states the IDM as a linear, decision and consequences focused progression, rather than the method that would enable to understand the adopter’ mental process. On the contrary, TAM together with one more early theory of Planed Behavior (Ajzen, 1991), is presented by the scholar, as being more behavioral focused. This assumption comes from the main purpose of the TAM which is to analyze the effect of external variables on internal customers’ attitudes, beliefs and intensions (Elwood et al., 2006, Cui, Bao, Chan 2009; Kuo & Lee 2009). In regard to TAM, two aspects -perceived usefulness and perceived ease of use – are assumed as the core while explaining customer’s attitude and intensions toward innovation. Despite the fact, that the theory was supported by extensive spectrum of studies, some limitations still appears to be highlighted. For instance, due to some other researchers Elliot and Loebbecke (2000), one of the main shortcoming of the TAM is the fact that theory does not include such aspects as social, institutional and personal as having an influence to the adoption process. Consequently, some researchers have approached the misgivings regarding individual acceptance needs, which is underestimating while applying TAM (Plewa et al., 2012). Following this approach, IDM can be assumed as being even more concentrated on the individual’s perception because of the possibility to evaluate customer’s standpoints toward relative advantage, trialability, observability, complexity and compatability of innovation significantly affect its adoption (Roger, 2003). Taking this into account, recently extensive line of literature reviews appears to be focused on empathizing the importance of deeper understanding of individuals’ mental process while adapting innovations (Kings & Slovic, 2014; Seligman, 2006; Pereira, 2002). The vast majority of recent researchers agree on the Rogers’ “Innovation – Decision Process’’ model (IDPM) (Seligman, 2006)which implies the progression of activities that occur during the innovation adoption process (Seligman, 2006). The model consists of five stages. Accordingly, Rogers (2003) claims, that firstly customers are concentrated on the THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 22 evaluations of the knowledge they gain about the innovation. To this extent, innovation attributes, for instance, advantage, compatibility, and complexity are started to be of the interest to individual (Azadegan & Teich, 2010). The second stage considers the persuasion level, which goes hand in hand with individuals concerns to receive even more information in terms of innovation. Conceptually, the third stage is dedicated for making a decision. In respect to this, individual makes a judgment of innovation regarding its advantages or disadvantages, evaluates possible consequences of acceptance or rejection of the presented innovation. The fourth stage, is called implementation and implies individual’s engagement to the innovation which involves adopter’s efforts to learn more about the usefulness of a new item. Finally, the stage confirmation is build upon the decision finalization while seeking to be warranted about decision already made. However such five stages model of innovation started to be criticized because of its linear approach to customer decision-making. For instance, Pereira (2002) argue that innovation adoption process cannot be modeled on decision-focused progression through certain stages because it makes a potential adopter as a black box. On the contrary to this, Pereira (2002) suggest to investigate innovation adoption process through a sensemeking model which is defined as a cyclical process of extracting information about innovation from stimuli. Compering the mentioned model with Roger’s five stages, sensemakeing one is based on the evolution of the adopter’s mental framework rather than explaining innovation adoption through series of activities through which the potential adopter goes during the innovation-decision process. In particular, Roger’s innovation-decision process shows the progress of activities during the overall process while sensemkaing model clarify the mental mechanics at each stage. For better understanding, the example of the first knowledge stage can be taken. Sesnmakeing model claims, that potential adopter gain knowledge about innovation from stimuli, which is a result of the environment surrounding an individual. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 23 Taking this into account potential adopter use his/her social contacts or other elements of the environment in order to gain understanding if innovation is the way to meet his/her needs. On the other hand, such attempts to explain innovation adoption process require deeper understanding of customer behavior from psychology point of view. However, the alternative model still agrees on the fact, that information use is unavoidable in order to make a judgment of innovation. According to the fact that the main purpose of this study is to explore the effect of cognitive versus affective information types on innovation judgment, deeper analysis of prior studies regarding the role of information in the innovation adoption process is essential. How it was mentioned above, following the Rogers’s (2003) series of adoption stages, customers gather and consider information in order to make analytical judgment of the risks and benefits of innovation. To this extent, the adoption process can be perceived as “a future event with uncertain outcomes’’ (Sääksjärvi & Morel 2010) where risk and uncertainty considered as being the main barriers for favorable adoption decisions (Hoeffler, 2003; King & Slovic, 2014). Subsequently, due to the information collected customers increase understanding of an innovation, which goes hand in hand with the evaluation of its benefits (Hoeffler, 2003). This has particularly been the case, why extensive spectrum of research correlates adoption process to the reduction of uncertainty through a bottom-up cognitive operations in which customers consider information available (King & Slovic, 2014). Accordingly, Kuo & Lee, 2009) has successfully applied TAM in order to point out the relationship between information and perceived ease of use. Based on the study conducted, two crucial points such as need-centric and task-centric should be taken into considerations in order to ensure the effectiveness of information. Conceptually, need-centric reports the significant importance to be focus on providing information in as much comprehensible way as it is possible for the purpose to enhance the perception of usefulness. Whilst, task-centric THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 24 factor is suppose to be for targeting the certain group of customers. The importance of the need-centric orientation can be supported by the approach, which is based on the fact, that information enable potential adopter to re-assess and mentally overcome risks associated with the innovation (Flight et al., 2011). From this perspective, the hypothesis that information is negatively related to risk and complexity supposed to be confirmed. However, the study conducted by Flight et al., (2011) pointed that the negative coefficient certainly exists, but it is not strong enough to affirm the significant linkage. Considerably, substantial amount of questions regarding the role of information in terms of innovation attributes in the adoption process still require deeper analyzes. Taking this into account, despite the fact that much researcher has been carried out for conceptualizing the innovation adoption decision as a bottom-up cognitive process (Wood & Moreau, 2006), growing body of the recent studies started to suggest an alternative explanation for early judgments of product innovations (King & Slovic, 2014). According to the study of the Pham et al. (2001) the affective innovation judgments can be perceived as being more faster, more consistence across individuals and even more predictive in terms of targeted customer’s minds than cognitive-based evaluation. Due to this, some authors argue that the role of affective reactions assume to be as a dominant in the process of product innovation judgments (King & Slovic, 2014; Baumeister, Vohs, DeWall &Zhang, 2007; Lowenstein, Weber, Hsee & Welch, 2001). As a result, the present research considers the different influence of the affect-based and cognitive-based information toward innovation product judgments. Innovation attributes. Many studies have been conducted in order to understand the main aspects of the innovation adoption process that can provide valuable support for the companies commercializing their innovations. It can generally be said that the majority of the most recent studies are still based on the theories of Ewerett M. Rogers that first were THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 25 recognized in 1962 and still hold the highest position in terms of innovation topics (Kapoor, Dwivedi, Williams 2014). As the inventor of diffusion of innovation theory, scholar claimed that diffusion is the process by which innovation is communicated through various channels to members of the social system (Roger, 2003). Accordingly, Rogers identified five main attributes of innovation – relative advantage, compatibility, complexity, trialability, observability - that have been found as having significant influence on the rate of adoption. For the purpose of making deeper analysis regarding the relationship of innovation characteristics and its adoption process, an enormous volume of studies was conducted on the basis of Roger’s five attributes (Adams, Transfield, Denyer, 2013; Kapoor et al., 2014). To this extent, Tornatzky and Klein (1982) after performing review and meta-analysis of seventy-five articles have distinguished three attributes – compatibility, relative advantages and complexity – as having statistically significant relationship with the innovation adoption. Nevertheless, the researchers have done considerably more work, while adding even 25 supplementary characteristics of innovation to the five attributes of Rogers. However, it should be empathized that this already thirty – three years old study primarily was implemented not for adding new attributes. The main purpose was to explore the relationship of innovation characteristics with both: innovation – adoption development and participative decision – making (Tornatzky and Klein, 1982). However, taking into account that the study of Tornatzky and Klein was conducted almost thirty-three years ago, it is no wonder that until these days numbers of the revisions of innovation attributes were done by many researchers. Consequently, in 1991 Moore and Beinbasat have successfully performed one more study in this area regarding attributes from both Rogers and Tornatzky and Klein lists. As a result, researchers have identified three new characteristics – image, voluntariness and result demonstrability – as needed to be incorporated while analyzing innovation adoption process. However, in 1997 Agarwal and THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 26 Prasad have presented interesting findings that in some cases can be perceived as contrary to the approach of Moore and Beinbasat. Scholars argue that attributes identified by Moore and Beinbasat cannot be introduced as significant predictors of innovation acceptance. In this respect, Agarwal and Prasad have noticed that the effect of different attributes to the innovation adoption depends on two dependent variables: current and future usage. Due to this, such attributes as compatibility, visibility, trialability and voluntariness were perceived as having the biggest influence to the current use. Meanwhile, with regard to the future use, result demonstrability was recognized as working in concert with concept of relative advantage and has statistically significant impact on the future use intensions. Following this approach, to communicate the tangibility of innovations’ benefits becomes extremely important for the organizations’ performance. Based on the growing literature on innovations importance to the overall company’s success in the twenty-first century, researchers have recently questioned the need for exploring innovations attributes and their impact to the consumer’s decision to adopt innovations in nowadays perspective. One of the most resent studies regarding the innovations’ attributes was conducted by Kapoor, Dwivedi and Williams (2014). The primarily purpose of the study was to identify the main changes and possible progress in use of innovation attributes in the last 15 years (attributes that were shortlisted since 1996 until mid of 2011). To this extent, scholars decided to explore all twenty-eight attributes that were identified by prior researchers Tornatzki and Kleen (1982) as well as More and Beinbasat (1991). However, the research has been proceeded with the list of eight attributes which had been developed using the results of meta-analysis that were based on 223 publications and the elimination of all attributes that were discussed in less than ten studies. The results of the study were concluded with the fact that the most frequently mentioned attribute was noted to be the ease of operations. Following the study, from the customers perspectives, ease of THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 27 operation is associated with the minimal need of physical and mental efforts to be used in order to make a particular innovation to operate. In addition, it was found that ease of operation consider to be assumed as an opposite to the complexity attribute and had the influence on the perception of usefulness. On the other hand, even the ease of operation in numbers of studies was identified as having a significant influence on the innovation adoption process, but the mentioned attribute not necessarily plays a substantial role in this matter. For instance, it was revealed that innovations of e-government services do not include ease of operations to the list of attributes as having essential impact on the innovation adoption. Continuing with other discussed attributes - visibility, social approval, demonstrability, and image – it can be concluded that the latter are directly related with the positive impact on adoption. The same time riskiness and voluntariness can cause both effects: positive and negative. It should be empathized, the cost was linked only with the negative impact on innovation adoption. One of the most recent studies was conducted by King and Slovic (2014). Researchers have recently questioned the need to explore the affect heuristic in early judgments of product innovations. Consequently, in order to reach the study’s primarily purpose, which was mentioned above, scholars decided to distinguished two attributes – riskiness and benefits – as having a significant influence on the innovation adoption process. The central focus on these certain attributes was based on the approach provided by prior study (Arts, Frambach, Bijmolt, 2011), which generalized consumer innovation adoption process, by providing deep meta-analysis regarding widespread models in terms of innovation adoptions (e.g. Rogers’ (2003) innovation diffusion model, Davis’ (1989) the technology acceptance model etc.). As a result, it was come to agreement that innovation adoption process is directly related with the process of uncertainty reduction. Accordingly, in regards with innovation attributes customers are tend to assess both benefits and risk they are going to THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 28 encounter while adapting innovation. King and Slovic (2014) empathize that the risk can be perceived as a “salient”attribute, which has a significant influence while adapting innovations. It is so, because from the customers’ perspectives the benefit of innovation due to its newness is considered as being uncertain or simply unproven. Subsequently, the risk attribute is noted as being one of the most ‘salient’ attributes, which arise from the factor of uncertainty and can significantly influence the innovation adoption process. In addition, it must be mentioned, that scholars (King and Slovic, 2014) have found, that the assessments of attributes – riskiness and benefit – are interrelated and can be directly effected by both cognitive and affective decision making. Affective and cognitive information. Defining information and information behavior. It is no wonder, that once the decision to launch an innovation is made, the second stage of new product development is the combination of production and marketing activities (Garrido-Rubio & Polo-Redondo, 2005). The current study will contribute to the marketing part which is noted as being one of the most substantial and expensive determinants of innovation success (Avlonitis & Papastathopoulou, 2000). It is fact, that marketing involves product communication activities that play extremely important role in innovation adoption process while the target audience is trying to gather information in order to make a decision (Roger, 2003). Consequently, to investigate the relationship between information provided during the product communication and decisions made by customers is significantly important for commercializing innovations. Extensive spectrum of studies has been carried out in the field of human behavior regarding information (Burford & Park 2014, Robson & Robinson, 2013; Hepworth, 2007). As a result, the term ‘’information behavior’’ (IB) evolved and started to be widely analyzed by researchers with the aim to predict how human is tend to approach and handle information (Davenport, 1997). The scholars provided various suggestions for the purpose to THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 29 define IB as many precise as it is possible (Mutshewa, 2007), while this study is based on the explanation introduced by Wilson (2000): Information Behavior is the totality of human behavior in relation to sources and channels of information, including both active and passive information seeking, and information use. Thus, it includes face- to-face communication with others, as well as the passive reception of information as in, for example, watching TV advertisements, without any intention to act on the information given (p.49). In addition, for the purpose to be even more precise in accordance with the aims and objectives of the study the term “information” here will take the form of “message” (Shenton, 2004) to the customers about product innovation. Following the approach of Wilson (2000) the central focus on the present study is going to be on information use and potentially passive reception to it. It is so because, according to the fact that the product innovation should be new for the customers (Johannessen et al., 2001), an assumption can be made, that target audience simply had no idea that the product exist before the advertisement has reached them. From this perspective, customers are tend to gather and consider information very carefully, because of the high uncertainty level in terms of possible risks and not confirmed benefits of the innovation (Kings & Slovic, 2014; Huy, Svein & Olsen, 2012; Saaksjarvi et al., 2010). Subsequently, any insights about the process how individual move him or her to evaluate one product better than other assume to be a significant contribution to the marketer’s success (Werth & Foerster, 2007). Despite the fact, that the abundant of the literature investigating human information behavior regarding innovation adoption decision process place cognitive approach as a dominant (Wood & Moreau, 2006), the recent studies have been started to actively empathize the significant role of affective factors in customer’s decision making (Savolainen, 2015; Vinhas, Silva, Faridah &Alwi, THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 30 2006; Werth & Foerster, 2007; Kings & Slovic, 2014; Mazaheri, Richard & Laroche, 2012). In line with Werth & Foerster (2007) the comprehensive evaluation of customers behavior cannot assume cognitive as a dominant one and affective factors need to be taken into more accountable considerations because of its ability to influence consumer behavior significantly in an unconscious way. In accord to the information behavior, one of the prior study (Clore, Schwarz & Conway, 1994) has identified the correlation between both negative and positive emotions impact to the different customer’s information – processing strategies. This correlation was supported by Savolainen (2015) who following the approach of Nahl (2007) once again revealed the energizing role of the affective factors in respect to cognitive one. Consistent with Nahl (2007) it was empirically proved that successful information behavior depends on regulation of negative and positive affective forces on individuals in information use. Taking into account the present research considers how customers form product innovation judgments using information provided in both cognitive and affective styles. Affective and cognitive decision making regarding information use. Owning to the fact, that nowadays one of the most fascinating discussions surrounding scholars is the role of emotions and rationality in customers’ decision- making (Hess & Bacigalupo, 2011). It is no wonder that numbers of ways to present the main idea of cognitive and affective factors were identified. However, first of all, in order to clarify the affective and cognitive factors from terminological point of view needs to be empathized, that due to psychology both factors are assigned to the components of mind (Ranganathan, Madupu, Sen & Brooks, 2013). Consequently, it can generally be said that both of these components is directly related with information use, which can be perceived as a raw material for the individual’s mind, (Kaye D., 1995) and is recognized as playing important role in the customers innovation adoption process (Roger, 2003; Kuo & Lee, 2009; Flight, D’Souza & Allaway, 2011). Based on the approach of Youn (2000), both cognitive and affective factors influence human’s decision THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 31 making by taking into account different elements. Subsequently, affect involves feelings, emotions and moods, the same time cognition refers rational thinking, understanding and interpreting information (Youn, 2000). In the context of process, due to Huitt and Chain (2005), cognition can be conceived as “ the process of coming to know and understand; the process of encoding, storing, processing, and retrieving information”, while the affective process is based on “the emotional interpretation of perceptions, information, or knowledge”. Due to the definitions provided it can generally be said, that cognition answer to the question of “what is the meaning of the information provided?”, meanwhile affective can be defines by the question “ How human feels about this information?”. Characterizing the cognitive factor in the decision making perspectives, it can be noted that it is in a strong correlation with rationalism and rational decision making (McGrath, 2006) because it is directly related with perception, reasoning and judgments (Kim, Chan & Chan, 2007). Whereas affective factor serves individual’s subconscious level of mind and works as the internal motivator to appeal the things that provides us positive associations and good feelings (Williamson, 2002). In this respect, emotion considered to be the core element in affective perspectives (Law, Wong & Yip, 2012) and plays important role in customer’s information use (Kings & Slovic, 2014) . It is so, because individuals are more focus and more often recall the information, which is consistent with one’s mood state (Mattila & Wirtz, 200). As a result, can be claimed that feelings are able to provide customers with a significant source of information for evaluative judgments of an innovation attributes by creating positive or negative feelings (King & Slovic, 2014). For instance, specific risk of an innovation can be unnoted by customers, because of the positive feelings created by compelling communication type of an innovation with positive emotional cues such as uplifting music or happy people. The assertion, that feelings provide valuable information, which is used by costumers in order to facilitate their decisions, is supported by somatic THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 32 marker hypothesis (SMH) (Damasio, 1996). SMH fundamentally is based on the notion that “ bioregulatory signals, including those that constitute feeling and emotion, provide the principal guide for decisions” (Bachara, Damasio H. & Damasio A.R., 2000). SMH holds that positive and negative feelings associated, for instance, with information provided have a direct impact to the extent to which customers prefer one option to another (Kings & Slovic, 2014). Taking everything into account, numbers of scholars have assumed cognitive and affective factors as being even as an antagonist (Armony & Vuilleumier, 2013) that are fighting for the main role in the customer’s decision making. Despite this, some researchers have approached the question to analyze the interplay between these to components of human’s mind and even started to support the assumption, that emotion itself can be perceived as being rational, because it is able to set the goals of actions (De Sousa, 2009). Consequently, scholars have recently questioned the need to investigate the relationship between cognitive and affective factors in terms of information seeking and use for the purpose to elaborate what the role each of the factor is playing in customers behavior (Savoleinen, 2015). Interplay of cognitive and affective factors in information use. Abundance of articles still are tend perceive cognitive and affective factors as separate entities (Savoleinen, 2015). The assumption is supported by Wilson (1999) who has analyzed thirteen major models of information behavior, and only several of them were identified as taking both factors into sufficiently detail analyzes. Following the approach of the recent sholar Savoleinen (2015), models of Kuhlthau and Nahl, that have been developed independently since the 1990s, should be conceived as the most sophisticated and the only one that provides detail conceptualization of cognitive, and affective factors in information seeking and use. In THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 33 addition, both of the models do not consider mentioned factors as a separate entities and the main empathizes is placed on their interplay. Due to the Fulton (2009) the model Information Search Process (ISP) introduced by Kuhlthau in 1991 plays a significant role while forming “cognitive-affective approach”. ISP is based on the psychological theories developed by Kelly (1963) and Bruner (1973), where the central focus is concentrated on the nature of human thinking, feeling and acting as a construction process (Kughlthau, 2004). The model consider affective factor as a “Symptoms” that are caused by cognitive factors arrived from negative or positive feelings such as anxiety, doubt or satisfaction. Need to be empathized, that the mood is assigned to the affective-cognitive factor and reflects individual’s attitude toward information. Whereas, cognitive factor is interpreted as thoughts that are in a relation with the task at hand and choices made. Subsequently, the interplay of cognitive and affective factors is based on the uncertainty principles “Uncertainty is a cognitive state that commonly causes affective symptoms of anxiety and lack of confidence” (Kuhlthau, 1993). As a result, Kuhlthau (2004) argues that affective factors direct cognition throughout the process of information search and use. On the basis of psychological theory provided by Kelly (1963), feelings directly impact the process of constructing meaning about the information gathered. The Social – Information Technology model (SBIT) proposed by Nahl is reported as being a significant contribution to the perception of the affective factors in terms of information behavior (Savoleinen, 2015). The main purpose of SBIT is to reveal the interdependency of cognitive and affective factors in processing and using information (Nahl, 2007). The model is based on the fact, that information behavior is based in individual’s biological procedures that are continuous and consists of sensorimotor, cognitive and affective processes. To this extent, affective factor is perceived as playing a substantial role in the first phase of information use and is dominant on bi-polar scale with regard to the THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 34 evaluation of information (e.g good – bad etc.). While cognitive factor appears to be active in the second phase of information use. Accordingly, in the context of interplay of affective and cognitive factors, SBIT claims that cognitive appraisal is caused by affective procedures that work as motivator and regulator for cognitive procedures to occur. To sum up, basically the core difference of ISP and SBIT is based on the role of affective factor, which is significantly stronger in SBIT model where affective procedures are reported as a dominant one and suppose to be the main reason for cognitive action to be started. In contrast to the approach of ISP, SBIT does not place such priorities to the affective factor and place cognitive (thoughts) and cognitive-affective factors (mood) as prior to affective one. Affective and cognitive communication strategies for successful innovation judgment. In a subsection “defining information and information behavior” we provide the definition of information and how customers tend to use it, however any clues about the way information reaches the customers are not provided. However, for the purpose of this research it is important to look into it directly from the perspective of the innovation adoption process. From this perspective, information goes hand in hand with communication strategies (Roger, 1995). Consequently, communication can be described as a process of information transfer and construction of the meaning of information shared (Blyth, 2002). As a result, it is no wonder that companies put a lot of efforts in order to provide the information about innovation in as much effective way as it is possible. In essence, extensive line of researchers suggest that appropriate introduction to the innovation is one of the key success factors for achieving a favorable performance of innovation (López & Sicilia, 2013). Existing literature, which is exploring innovation adoption process, argues that advertisement is still maintained to be the most effective communication tool for introducing innovation (Manchanda, Xie & Youn, 2008; Narayanan, Manchanda & Chintagunta, 2005). THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 35 According to the fact that active discussions evolved in terms of affective and cognitive factors in information use and overall innovation adoption process, advertisements started to be created on the basis of the process that potential adopter uses in order to evaluate the innovation. Active considerations regarding what plays a dominant role, (affective or cognitive information use in innovation judgment) leads to one more question, which asks on what basis – emotional or rational appeals - advertisements should be built on. The way consumer accepts advertisement started to be analyzed years ago. For instance, Batra and Ray (1986) argue that cognitive responses regarding advertisements and information provided in it cannot be assumed as playing a dominant role and affective responses should be taken into serious considerations by researchers. In this regard, the matter is to understand which way to appeal to the customer is more affective in shaping consumers attitude towards the product (Batra & Ray, 1986; Crites, Fabrigar, Petty 1994; Gil-Saura & Ruiz-Molina, 2008). Consequently, emotional or rational appeal can cause positive or negative attitude towards the product what is directly related to the customer’s decision to adopt or not a certain product (Marin, Pizzinatto & Giuliani, 2014). Currently, despite the fact that the number of studies explain customer’s behavior in respect of cognitive process, significantly increased number of researchers started to support the dominant role of emotions in successful advertising (Marin et al., 2014). A comprehensive understanding of the overall process how human mind works became the main reason why cognitive or rational based advertisements started to give the way for affective or simply feeling-focused ones (Wood, 2014). Hence the interaction of psychology and neuroscience in marketing sphere assumed to be obvious. Nobel prize laureate psychologist Daniel Kahneman contributed the marketing field by providing profound insights about human decision-making and judgment process that was THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 36 based on number of researches conducted and presented in his work “Thinking Fast and Slow” (Bazerman, 2011). Kahneman proposes that the two cognitive processes exist (Figure 1). First is called “system 1” and is built on the initiative, automatic and associative fast reaction. Latter system characterized as being slow for learning and not requiring any efforts. While the “system 2” is based on conscious mental process that requires efforts in making certain judgments. However, Kahneman asserts that human being is not used to thinking hard and tends to rely on a plausible judgment that comes to the mind on the spot (Wood, 2014). In addition, Koghneman agrees with the idea that emotional arousal is able to reduce the possibility to accept rational-counter arguments while increasing the accessibility of the thoughts that are based on the immediate emotion. Need to be empathized that the scholar asserts that the ability to evaluate information provided using “system 2” depends on the quantity of information available. Consequently, according to Wood (2014) such mental mechanism can be applied for customer’s reactions to the advertisements and their later decision making. System 2 Slow Conscious Reflective Deliberative Analytical Rational Logical System 1 Fast Unconscious Impulsive Associative Automatic Emotional Figure 1. Main differences of System 2 and System 1 suggested by D. Kuhgneman. From: “How Implicit Association Measurements Lead to Explicit Business Result at Dr. Aaron Reid at IIe X”, 2014. Retrieved from: http://www.sentientdecisionscience.com/tapping-system-1-processing-reveals-deep-consumer-insights/ THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 37 Continuing, when the information about the product in advertisement is introduced on the emotional basis (“system 1”), it makes customer feel more positive and leads to the resistance of any effortful considerations (“system 2”) in terms of information provided. According to Wood (2012), who dedicates the majority of his research to investigate emotion’s role in advertising, “system 1” is the one which is willingly used by the customers while evaluating advertisements. In addition, one more scholar Reid (2014) provides estimations that were conducted by psychologist and claims that in general 95% of the human thoughts occur in “system 1”. Following Wood (2012) “emotion not only influences what we pay attention to but automatically channels our thoughts and makes certain associations accessible to us, simplifying decisions and guiding the judgments we make” (p. 32). Furthermore, the researcher argues that lack of emotions can even interfere the customer’s process of decision making. As a result emotional appeal to the customers evokes positive feelings that in a direct or indirect way has a significant positive effect on customers attitude towards product or brand (Figure 2) (Geuens, De Pelsmacker & Pham, 2014). According to Geuens et al., the direct positive effect on the customer’s attitude can be identified in two ways as showed the Figure 2. As a result, the first way is conducted when emotional based advertisements can awaken positive thoughts by stimulating favorable feelings about the brand. The second way for shaping customer’s expected attitude towards the product or brand is by automatic process of evaluative conditioning evoked by emotional advertisements. Taking this into account one of the main aims of the marketers became to stimulate as much positive emotions as it is possible in order to generate customer’s satisfaction that would be reflected into more positive attitude towards the product (Marin et al., 2014). THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 38 a Ad-evoked feelings Attitude toward Ad b a Attitude toward product or brand b Direct effect a Indirect effect Figure 2. Direct and indirect effect of Ad-evoked feelings to product or brand attitude. From: “Do pleasant emotional Ads Make Consumers Like Your Brand More? “, Emotional Ad, 6(1), 40-45. As a result traditional hierarchy-of-effects model which is based the sequential process where customers move from unawareness to awareness, from awareness to understanding, from understanding to persuasion, from persuasion to purchase is noted as being more convenient because of its applicability for pre-testing and tracking research rather than being more informative and useful for marketers (Wood, 2012). Problem Definition Summary of the theoretical conceptualization. The main aim of this section is to summarize the significant contributions of previous researchers in the context of the main aim of the present study. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 39 According to the literature review it can generally be said that majority of the recent innovation adoption studies still is built on the basis of classical models such as TAM (Davis 989) or IDPM (Roger, 2003). It is important to notice that none of the researchers argue against the fact that innovation adoption is directly related with the process there potential adopters search and use information about innovation. From this perspective consumers consider information with respect to innovation attributes regarding which numbers of discussions occurred and have been already reviewed in this chapter (Table 2). Table 2 Overview of product innovation’s attributes analyzed in the literature Authors Number of attributes 5 Analyzed attributes listed Tornatzky & Klein, (1982) 9 Relative advantage, compatability, complexity, communicability, divisibility, profitability, social approval, trialability, observability. Moore & Beinbasat, (1991) Saaksjarv & Morel (2010) Flight, D’Souza & Allaway (2011) 3 Image, voluntarines, result demonstrability. 3 Performance risk, relative advantage, compatability. 15 Kapoor, Dwivedi & Williams (2014) 8 Observability, communicability, trialability, personal compatability, social compatability, social advantage, volition, relative atvantage by attributes, relative economic advantage, customizability, product performance, complexity-in-use, complexity-in-design, category risk, discontinuity. Ease of operations, image, cost, riskness, visibility, voluntariness, result demonstrability, social approval. Kings & Slovic (2014) 2 Roger, (1962) Relative advantage, compatability, complexity, trialability, observability. Risk , benefis Despite the fact that numbers of innovation attributes are considered by different scholars and in different times of period some of the attributes remain irreplaceable years after years. Without doubts relative advantages, risk, complexity and compatibility can be assigned to the list of irreplaceable innovation attributes. The long maintained interest of latter attributes can be correlated with the fact, that extensive line of researchers support the approach that innovation adoption goes hand in hand with uncertainty reduction process. Consequently customers suppose to consider information about innovation in order to THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 40 evaluate risk, which also correlates with complexity to use totally new product or innovation’s ability to be compatible to his/her personal life. Moreover, following the analysis of prior research conducted, potential adopter always try to assess how new product could satisfy his/her needs, consequently the attribute relative advantage always is involved in the innovation adoption process. However, should be empathized that sufficient number of most current studies started to provide critique approach toward traditional explanation of innovation adoption process which more a less is based on cognitive process. Scholars started to provide empirically proved arguments regarding dominant role of affective process in innovation judgment. How it was mentioned above, the vast majority of researchers agree that information plays extremely important role while potential adopter try to evaluate innovation. Due to this the term information behavior was taken into considerations in order to ensure the clear understanding of customer’s information use process. Extensive line of discussions of quantitative and qualitative empirical works, reviews shows that understanding of information use works together with customer’s decision-making. It means that decisions are effected by the way the information was used by the potential adopter. Consequently, the numbers of researchers questioned the need for discussion in terms of mental process that customers experience while evaluating information that leads to a decision regarding innovation judgment. Based on the literature review it can be said that exist sufficient amount of research asserting the dominant or at least the same weight role of affective process in the innovation adoption context comparing with cognitive process. Table 3 shows an overview of studies that actively support the approach, that cognitive process do not play a dominant role in customers information use and decision making, and the significant considerations regarding the role of affective factors and its interplay with cognitive one should be taken into considerations. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 41 Table 3 Overview of most recent studies that support the significant role of affective factors in customers information use and decision-making Authors Approach Comment Savolainen, 2015 Cognitive factor in information use cannot bee seen as Approach is based on detail analysis playing a dominant role. In order to have holistic and comparison of Kuhlthau’s and picture of information use the interplay of both factors Nahl’s models. The latters are – affective and cognitive – should be discussed. identified as pioneering approaches in information seeking and use. King & Slovic, 2014 Potential adopter of innovation often relies upon their Authors conducted three experimental overall affective impression while evaluating risks and studies that were based on the benefits of product innovation. customers judgment of two main innovations attributes: risk and benefit. Mazaheri, Richard & Support the idea that customer’s emotions such as Lab experiment was conducted for Laroche, 2012 pleasure, arousal and dominance has a significant testing online consumer behavior impact on customers attitude toward object and regarding the effect of emotions. intention to buy. Mattila & Wirtz, 2000 Claim that affective factors (emotional) effects Analyze the effect of affective factors individual judgments of products or services. in the context of prepurchase and Distinguish such factors as pleasure and arousal as postpurchase process in order to test playing a significant role in product or services the effect of customers emotional evaluation process. responses to overall judgment of the product/service service and his/her intention to choose this product/service one more time. Lakomski & Evers, Argue that emotions plays a dominant role in rational The approached is based on the 2010 decision making. Suggest to replace traditional rational neuroanatomy of emotion applying decision-making theories to theory of emotional naturalistic philosophy of human decisions that is assume to be more realistic from the thoughts and experience and his ability biologically point of view. to value the things on the basis of his neuroanatomy. Currently, many questions frequently arise in order to understand the role of feelings and rationality during the process of information evaluation. However, lack of studies can be identified that would directly analyze the affective and cognitive information use in terms of innovation adoption process. Due to this, the present study is going to fill this gap while THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 42 connecting process such as information use, cognitive and affective procedures that potential adopter experience and innovation adoption. Coming back to the main aim of the present study, both of the mentioned way can be applied for promoting innovation, because radical product innovations can be suggested not only by the well known brands but by totally new creators such as start ups too. Problem identification. The review of literature has shown that innovation adoption is perceived as an uncertainty reduction process. Due to this risk and relative advantages became innovation attributes that were approved by number of studies as being the core variables according which potential adopter makes his/her judgment. In addition, extensive line of researchers agree that in order to reduce the uncertainty level and to make a positive decision toward innovation, customers need to be provided with a reasonable amount of information. Consequently there is no consensus in academia world regarding the mental process that customers experience while evaluating risks and benefits of innovation. Discussions’ main purpose is to understand which process (cognitive or affective) is playing the dominant role while the potential adopter is making his judgment. At the same time researchers investigating the direct effect of advertisement suggest number of empirically proved evidence that emotional based advertisement has significantly more positive effect on customers decision making than one that has rational appeal to the target audience. As a result, the fact that advertisement is approved as the most effective communication tool for providing information about innovation to the potential adopter (Manchanda et al., 2008; Narayanan et al., 2005) rises one more question: is it possible to reduce uncertainty level using emotional advertising? Taking everything into account what was mentioned above it becomes obvious that in order to understand what mental process potential adopter uses in evaluation process of innovation it becomes important to find out how information provided in an affective or cognitive way effects innovation judgment. Hence the main question still THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 43 unanswered is: what is the effect of affective versus cognitive information use on product innovation judgment? Although previous studies have attempted to answer the question what process occurs in customers’ mind while they try to evaluate innovation, obvious lack of studies that would investigate the direct effect of information provided in both affective and cognitive ways exists. Despite the fact that the number of researches was conducted with the purpose to understand the differences of effects of emotional and rational advertisements, deficit of studies that would be specially adapted to the innovation adoption sphere is noted. As a result current state of researchers’ and marketers’ knowledge in terms of mental process that potential adopter experiences is still limited, because the topic is strongly related not only to marketing sphere but interaction of psychology and neuroscience specialists becomes increasingly necessary. Consequently, it becomes clear that causal relationship between main concepts of the current study -“affective and cognitive information” and “ innovation judgment” - is still not covered sufficiently. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 44 Research Methodology The chapter of the research methodology presents research model and provides main arguments, based on the findings of literature analysis, why it is reasonable to apply it in order to test hypothesis that are framed with the aim to answer the research question. Later the research method is selected for the purpose to conduct developed research model in as much effective way as it is possible. The overall plan of the research will be outlined in order to be always on the track while trying to reach empirically approved findings that would be beneficial from both theoretical and practical point of view. Moreover, how it will be uncovered in the overall plan of the research, the chapter involves implementation of manipulation checks that enable to be more insured in terms of the validity of the research model. Finally, the overall process of empirical testing of hypothesis concludes the chapter. Consequently, in order to be clear how the results of the research were gained the section consists of detail introduction of the research methodology, techniques of statistical data analysis, the role of main moderators and procedure of the study. Research Model Development And Hypothesis Formulation Research model is presented in the Figure 5 and is constructed according to the literature analysis of previous studies in the field and obviously with respect to the research question: “what is the effect of cognitive versus effective information on product innovation judgment?”. The model is based on the construct of multivariate regression analysis with the moderation effect (affective-based ads vs. cognitive-based ads.). Consequently, the model suggests that affective and cognitive information being as a moderator addresses how product innovation attributes and attitude toward brand (product) influences product innovation judgment. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 45 As a result four innovation attributes such as compatibility, relative advantage, construct of risk and complexity should be involved between predictors for two main reasons. Firstly, mentioned attributes, following the literature review, are empirically approved as being one of the strongest predictors regarding innovation adoption. Secondly, the information, which is going to be provided in two ways – affective-based ads and cognitive– based ads has the real possibility to raise associations with the attributes listed. It means that information will be informative enough to form even the primary approach of the potential adopter regarding innovations’ relative advantage, risk, complexity and compatibility. In addition the model involves one more predictor, which is attitude toward product. The latter is added because of reasons, that are uncovered in the vast majority of theories of innovation adoption process and studies that investigated customer’s responses toward affective or cognitive advertisements. Taking into account such theories as Roger’s innovation diffusion (2003), the technology acceptance model (Davis, 1989) or the theory of planned behavior (Ajzen,1991) or simply with reference to the overall literature analysis made in this research we can come to a conclusion that potential adopters consider information which form their attitude toward innovation (Kings & Slovic, 2014). Moreover, according to the fact that the present research will manipulate with information provided in different kind of advertisements – one will be affective-based and the other - cognitive-based – it is important to involve brand attitude which is undoubtedly is one of the most frequently used variables for evaluating customer’s responses toward advertisements (Batra & Ray, 1986). In general, the involvement of attitude as a predictor in the research model can be reasoned even by the approach of Crite, Fabriger and Petty (1994) who investigated the effect of affective and cognitive properties to individual’s attitude and support the position that “attitude is assumed to be evaluative summary judgments that can be derived from qualitatively different types of information e.g affective and cognitive”. According to the fact THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 46 that brands of product innovations that are going to be judged are not well known it is more likely that attitude toward brand will be transformed to attitude toward product. Such situation is not an exception in the process of product innovation judgment, because varieties of innovation types that have been already presented in the literature analysis show that innovations are not necessarily created under the well-known brands. For instance, number of success stories of startup business model reveals that on many occasions, potential adopters need to judge product innovations regarding their attitude toward product rather than brand. As a result, it can generally be said, that the construct of the model is dedicated to assess innovation judgment, which is affected by product innovation’s attributes (variables that are most frequently used for understanding potential adopter’s decisions) and attitude toward brand (product) (variable that most frequently is used for evaluating customers responses toward different types of advertisements) moderated by information provided in affective or cognitive ways. Consequently, the following hypotheses are identified (Table 4): Table 4. Hypotheses formulation H1 Compatibility is directly related to the product innovation judgment H2 Relative Advantage is directly related to the product innovation judgment H3 Risk and Complexity is directly related to the product innovation judgment H4a Interaction of Compatibility and Relative Advantage is directly related to the product innovation judgment H4b Interaction of Compatibility and Risk and Complexity is directly related to the product innovation judgment H4c Interaction of Relative Advantage and Risk and Complexity is directly related to the product innovation judgment H5 Attitude toward brand (Product) is directly related to the product innovation judgment H6 Affective-based and Cognitive-based Ads is directly related to the product innovation judgment H7 Affective-based ads (as opposed to cognitive based ads) have a positive moderating influence on the effect between product innovation attributes and product innovation judgment H8 Affective-based ads (as opposed to cognitive based ads) have a positive moderating influence on the effect between attitude toward product and product innovation judgment THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 47 The hypotheses are constructed on the basis of research problem that has clearly revealed the need to compare effect of information, which would be communicated through different kind of advertisements. This research is going to test the fact if the process of innovation judgment, which is comparable with uncertainty reduction process, can be more positively effected by information provided on emotional basis rather than rational information which, from the first sight, can be perceived as having higher possibility to Product innovation attributes reduce the risks related to the innovation. Compatibility: Personal compatibility Social compatibility Social advantage Relative Advantage: Product performance H1 H2 H4 Innovation judgment H7 Risk and complexity: Complexity - in - use Discontinuity H6 Affective vs. Cognitive ads H3 Affective vs. Cognitive ads H8 Affective vs. Cognitive ads Attitude toward product: Usefulness Importance Pleasure Nice or not H5 Figure 3. Research model As it was mentioned above, innovation adoption process is inseparable from the innovation attributes that were analyzed in an extensive line of prior and most recent research and is used by potential adopters in order to evaluate the innovation provided. Review of the THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 48 studies that have already been conducted showed that attributes such as relative advantage, risk, complexity and compatibility are one of the most frequently tested and analyzed by the scholars trying to explore the potential adopter’s decisions making regarding innovation judgment. According to the fact, that all these attributes are involved in the research model it becomes vitally important to provide clear definitions of each of them for the purpose of understanding the main role of each attribute in the model. Compatibility. The main aim of the compatibility attribute is to evaluate how well the innovation fits to the potential adopter’s personal life and social environment (Flight et al., 2011). Due to this, it can be defined as a degree to which potential adopter doubts that innovation is compatible with his/her values, needs and existing experience (Saaksarjvi et al., 2015). As a result, the more innovation is compatible the more it fits to potential adopter’s personal and social life (Roger, 2003). The present study involves the current attribute into its predictor’s lists because of nowadays market, which is already crowded by wide range of different kind of innovations. Consequently to evaluate only perceived benefits and risks cannot be representative enough for testing hypothesis, because the overflowing offers in the market provoke customers to personalize and evaluate them in the context of their personal and social life. Relative advantage. Roger (2003) defines relative advantage as a degree of potential adopter’s uncertainty level regarding product innovation’s ability to be better than already existing products in the market. Accordingly, Roger (2003) defines relative advantage as a rate of benefits and costs perceived by potential adopter. In other words, individual evaluates the promises of innovation and tries to make his/her position in terms of expected benefits and possible risks (expected product performance). Despite the fact, that Roger did not distinguish risk as a separate attribute, as was shown in the literature review, numbers of scholars put it in their lists of innovation attributes as one of the most important predictor for THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 49 the outcomes to test. Consequently, the present study uses relative advantage for exploring the strength of perceived advantages of product innovation while the perceived risks are checked additionally. Risk and Complexity. Flight et al. (2011) who had investigated characteristic-based innovation adoption process took risk and complexity in one construct defining risk as the customer’s conceived probability of potential failure of innovation while meeting his/her needs. Accordingly, in terms of risk attribute, customer simply tries to estimate how much it is likely that innovation will not be able to satisfy his/her expectations. Due to this, risk goes hand in hand with individual’s doubts to adopt or not the innovation and obviously with the overall rate of innovation judgment. Moreover, it is discussed that risk can be divided into numbers of kinds (Rijsdijk & Hultink, 2003), as a result it should be empathized, that the present study uses the performance risk which is most relevant to the product innovation and is conceptualized as definitions provided above (Saaksarjvi et al., 2015). The same time complexity, can be conceived as a subjective interpretation of the risk (Dowling & Staelin, 1994) or the degree of difficulties of learning to use the innovation (Flight et al., 2011). The present study uses the construct of risk and complexity that both following the previous research conducted are noted as being negatively related to the positive judgments of product innovations. To conclude regarding the research model, the latter is based on the moderation effect, which leads to the fact that manipulation will occur with two independent variables (affective-based ads and cognitive-based ads ) in order to test the effect of identified predictors (product innovation attributes and attitude toward product) to the product innovation judgment. Subsequently, manipulation with such moderators will enable us to gather date for empirical testing of hypothesis formulated with the purpose to reach the main THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 50 purpose of the present study, which is to evaluate the effect of affective vs. cognitive information on product innovation judgment. Research Method Experiment selection. In this research a quantitative research method an experiment is going to be applied for several reasons. First of all, currently existing studies that are related to the present research problem have been conducted while applying experiment. For instance, Batra and Ray (1986) use experiment for investigating affective responses as a supplement to cognitive ones in the acceptance of advertisements, while King and Slovic (2014) carried out an experiment in order to evaluate what is the impact of affect heuristic in early judgments of product innovation. Taking this into account, experiment is already approved as being an affective way for empirical evidence to be found in terms of exploration of affective and cognitive processes. Secondly, from theoretical point of view, an experiment is perfectly suitable for testing hypothesis where causal relationship can be identified between two or even more variables (Patzer,1996). Consequently, an experiment is frequently conducted in marketing research in order to reach the condition where manipulation occurs with one or more independent variable for the aim to test the hypothesis regarding dependent variable. In respect to this, such methodological approach is applied for the present research question because the manipulation is needed to evaluate the effect of affective and cognitive information to the product innovation judgments. Analytical framework for moderation effect. Following the research model the experiment is based on the construct of multivariate regression analysis with the moderator interaction. Hence, the effects of moderators are going to be tested. Moderator can be defined as qualitative or quantitative variable that influences the direction of the relation between an independent or predictors variables (Reuben and Baron, 1986). In addition, moderator can affect the strength of the mentioned relation. Accordingly the analytical framework of THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 51 moderator can be presented as in the Figure 3 provided below. Following the Figure 3 where the theoretical moderator model is applied for the present research, it is obvious that in this case the qualitative moderator directs the relation between predictors. Moreover, three causal paths (a;b;c) are identified as having impact to the outcome. Due to this the path a is noted as a factor which is not in a control while the path b is considered as effect of controllability. Need to be mentioned, that using such an analytical framework for testing moderator effect, the hypothesis can be supported only in the case when the interaction of path c , which is the interplay of predictor and moderator, is significant. In addition, it is eligible that moderator variable would not be in a correlation with both predictor and dependent variable in order to ensure the clearly interpretable interaction. Another specialty of the moderator is the fact that it always behaves as independent variable. Generally, in the current research, affective-based ads and cognitive-based ads being as a moderator address how innovation attributes and attitude toward product influence product innovation judgment. Moderator model b c Predictor X Moderators Innovation attributes + Attitude toward brand (Product) a Predictor Moderator Moderator model applied for the present Outcome Variable Affective-based Ads and Cognitive-based Ads (Innovation attributes + Attitude toward product) x Affective-based Ads and Cognitive-based Ads a b Innovation judgment c Figure 4. Statistical moderator model applied for the present study. From “The Moderator – Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical considerations”, by M. B. Reuben, D.A. Kenny, 1986, Journal of personality and Social Psychology, 51(6), p. 1174 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 52 Research process. For the purpose to come to the answer of the research problem consistently, the overall research plan was prepared. As shown in Figure 4 the theoretical foundation for the empirical work has been done in the previous chapter, where development of main concepts were implemented in respect to the studies conducted until the need of this research was identified, i.e. product innovation attributes that are used by potential adopter in order to judge the product innovation were identified through numbers of research performed as well as affective and cognitive process in terms of information behavior were analyzed. Consequently, theoretical considerations have brought to the main research question. Next the research model was constructed and the research method, in order to perform me model, was selected. In order to ensure the validity of the research model randomize manipulation check had to be carried out for moderators (independent variables) – affective-based ads and cognitive-based ads. The empirical testing of the hypothesis was performed, after that the independent variables have been statistically approved as being suitable for taking the role of moderators. The data collected has been checked on multivariate regression analysis with moderator’s interaction for the aim to provide statistically proven findings of the research. For the conclusion, discussion about research’s contribution to both academic and marketing management fields is presented the same as some limitations and suggestions for the future research are identified. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT Identification and conceptualization of key concepts Key concepts identification Theoretical conceptualization Main problem, research question and hypothesis identification Empirical testing of hypothesis Research model and hypothesis identification Research method and analytical framework for moderation effect manipulation check implementations 53 Discussion and Conclusion Theoretical findings and implications Contribution to marketing specialists Limitations & Future Research Empirical testing of hypothesis Figure 5. Research process outline. Pre-experiment Design of randomized manipulation check. Affective and cognitive information as advertisements. There is no concrete criteria according to which affective and cognitive information can be differentiated. Several authors underline that the level of presentation considered to be one of the most widely-spread ways to distinct what kind of information affective or cognitive – is presented (Crite et al., 1994). Consequently, following Crite et al. (1994) who conducted the research in order to investigate the scale for the evaluation of affective and cognitive information, as a whole describes affective information as the one which is assessed by the customers at a very general level, e.g. “happiness or sadness”, while cognitive information is more often evaluated at an object-specific level e.g. “grass is green”. According to the fact, that advertisement is still assumed to be the most effective way to present the information to the potential adopters of product innovations (Manchanda et al., 2008; Narayanan et al., 2005), the present research uses this presentation type for empirical testing of hypotheses. However, it is important to check if the selected advertisements THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 54 (selected way to present information) are really perceived as being affective-based or cognitive-based by the customers. Consequently, in order to be sure, that the moderators (affective-based ads vs. cognitive-based ads) are really suitable for the research manipulation check is required to be conducted. Selection of the product innovations and advertisments. Product innovations were selected taking into account three main criteria. Firstly products needed to be as new for the Lithuanian market as it is possible. In other words, no marketing campaign has been conducted in the Lithuanian market and innovations can not be older than one year in order to minimize the possibility that customers have already had the possibility to be familiar with innovations through any personally used channels. Secondly, product innovations had to be assigned to the same level regarding customer’s involvement. In order to avoid prices as a significant influencing factor it was decided to use product innovations that are more likely to be described to the low-involvement goods rather than high-involvement. Thirdly, product innovations needed to have advertisements that could be applied to the present research in terms of affective and cognitive nature. As a result two product innovations – vessyl cup and butterfleye camera were selected from the international list of innovative startups in 2014. While the third startup – Rockety Bike Lamp – was created in Lithuania and the present research was the first time when this innovation has been shown to the potential adopters. Short introductions to the each of the innovations are provided in Table 5. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 55 Table 5. Product innovations for manipulation checks Innovation Description Research name Innovation1 Vessyl cup Sensor-packed cup can automatically determine what kind Innovation1 of liquid you have poured inside it, as well as report the calorie content of whatever you poured. Innovation2 Rockety Bike Lamp Product provides light for a daily commute and extra Innovation2 security for possible situations of a bike theft. Lamp has a single LED light, battery to provide power, dynamo to recharge system, GPS module for tracking features and GSM module to maintain Internet connection. Innovation3 Butterfleye camera for home security The product can detect peoples’ faces and animals, and be Innovation3 connected with smart devices that would let you be aware of what is happening in your house at any place you are. Continuing, for the each of the selected product innovation two types of advertisements needed to be selected - affective-based ads and cognitive-based ads. According to the fact, that real product innovations were decided to be tested, videos were taken as being the best representatives of affective-based ads for Innovation1 and Innovation2. While for representing the cognitive-based ads, the print was approved as having the biggest possibility to present Innovation1 and Innovation2 in a cognitive nature. At the same time, the producer of Innovation3 had two different videos available that perfectly met our requirements in terms of affective-based ads and cognitive-based ads. The latter combination (two videos) was expected to be the best (two videos) choice, because of the decreased possibility that the results can be influenced not only by the nature of advertisements (affective and cognitive) but by the format of advertisement too. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 56 Consequently, such selection of advertisements (all the advertisements you can see in the Table 6) for all the innovations enabled not only to reach the main aim of manipulation check, but also allowed to detect if there are significant differences in the respondent’s evaluations of cognitive-based ads provided in two different formats - audio and descriptive. Moreover, selection of the two different formats could become the reason to eliminate Innovation1 and Innovation2 from the exper iment because of the aim to avoid any external influence factors such as different formats of affective-based ads and cognitive-based ads to the outcomes. Table 6. Advertisements for manipulation checks Innovation Affective-based Ads Cognitive-based Ads Innovation1 https://www.youtube.com/watch?v=lu4ukHmXK FU https://www.surveymonkey.com/s.aspx?sm=gnbNj2g X6bLnU1aLO7vk8g%3d%3d Innovation2 https://vimeo.com/113736749 Password: lempute https://www.surveymonkey.com/s/QMCX8G2 Innovation3 https://www.youtube.com/watch?v=6kCsztbSLo A https://www.youtube.com/watch?v=jlUu46Y8tWI In order to avoid confusion regarding products’ innovations and advertisements selected, abbreviations of advertisements used in the following research are provided in Table 7. Table 7. Abbreviations of advertisements Advertisement Innovation1 Innovation2 Innovation3 Affective-based Ads1affective Ads2affective Ads3affective Cognitive-based Ads1cognitive Ads2cognitive Ads3cognitive Aim and hypothesis of the manipulation check. It is fact, that only after providing statistical evidence that tested advertisements (that are the selected as the way to provide THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 57 information about the product innovation) can be indicated as affective and cognitive the research’s moderators are identified. Consequently the main aim of the manipulation check is provided below as well as hypothesis in the Table 8. Aim: to evaluate if different types of the advertisements (affective-based ads and cognitive-bases ads) can be considered as cognitive or affective. Table 8. Hypothesis of munipulation check. Ha Ads1affective is more affective ads than Ads1cognitive Hb Ads1affective is affective-based advertisement Hc Ads1cognitive is more cognitive-based advertisement Hd Ads2affective is more affective ads than Ads2cognitive He Ads2affective is affective-based advertisement Hf Ads2cognitive is more cognitive-based advertisement Hg Ads3affective is more affective ads than Ads3cognitive Hh Ads3affective is affective-based advertisement Hj Ads3cognitive is more cognitive-based advertisement Sample and procedure of manipulation check. Sample: Each advertisement was required to be evaluated by 80 respondents who were first and second year students from ISM University of management and economics. Such sample was selected in order to avoid any extraneous influences that would occur because of different ages, social class etc. and would cause unrepresentative data. Procedure: Using online survey respondents were randomly assigned to receive one advertisement in terms of three different innovations without having possibility to see and compare two different advertisements about the same product. One group of 86 participants read approximately 100 words print (Ads1cognitive) of Innovation1 that was cognitive in nature. Different group of 84 participants evaluated the Ads1affective of the same innovation, which THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 58 duration was 3 minutes 45 seconds, created in affective nature. Ads1affective enabled participants to see real situations of the product consumptions and provided the same information, which was presented in the print for the other group but using real creator team as presenters. 80 participants evaluated the approximately 100 words print (Ads2cognitive) of Innovation2. The group of 83 participants evaluated the Ads2affective. The latter group had to watch 1 minute 25 seconds advertisement with the same information provided as in the print, but with strong emotional clues (story telling, music, real artist etc.). Needs to be mentioned, that the Ads2affective, contrary to Ads1affective, did not have artists as presenters, due to this the information was written on the screen in the context of emotional scenario of advertisement. Finally, 84 participants got the Ads3cognitive. Participants had to watch totally informative, 1 minute 51 second video, where a man’s voice (it was not possible to use the presenter) provided main information about Innovation3 while showing it at the front of the screen. Different group of 83 participants were asked to watch Ads3affectiv. In Ads3affective real artists and a woman as a main presenter, enabled participants to imagine how Product3 could be applied to their everyday life situations. Consequently, in total 6 different objects were tested on a 7-point scale anchored at “Emotional” to “Logical”, “Imaginative” to “Informative” and “Feeling” to “Thinking”. Results of manipulation check. To evaluate if different types of the provided information can be considered as cognitive or affective information, student’s criteria for one sample and Student’s criteria for two independent samples were calculated for each of the objects (Table 5; Table 7; Table 9). Student’s criteria for two independent samples are used for testing if two sets of data statistically different in the context of normal distribution (Čekanavičius, Murauskas 2003, p.172 -175) 𝑡= 𝑥̅ − 𝑦̅ 𝑛𝑚(𝑛 + 𝑚 − 2) √ 𝑛+𝑚 √(𝑛 − 1)𝑠𝑥2 + (𝑚 − 1)𝑠𝑦2 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 𝑥̅ , 𝑦̅ are means of samples 𝑠𝑥2 , 𝑠𝑦2 are standard deviations of samples nm are sample sizes. 59 The value of t-test is compared with student’s distribution value with (n+m-2) degrees of freedom. Student’s criteria for one sample tests if the sample mean differs from the particular estimation. 𝑡= 𝑥̅ is the mean of sample a is estimation of mean 𝑠 2 is standard deviation of sample n is sample sizes. 𝑥̅ − 𝑎 √𝑠 2 /𝑛 The value of t-test is compared with student’s distribution value with (n-1) degrees of freedom. While means, standard deviations and t-tests results for all six information types were listed in the Table 12. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 60 Table 9. Student’s criteria for testing hypotheses of Innovation1 advertisements Measures Student's Student's criteria for one criteria for two sample Student's criteria for sample Ads1affective one sample Ads1cognitive 4 4 a (indifferent level) t (t-test) 10,87 15,12 111,02 k (degrees of freedom) 157 83 85 α (significant level) 0,05 0,05 0,05 1,98 1,99 1,99 t_α/2 (k) (Student distribution) The data provided in the Table 9 shows, that all hypotheses for Ads1affective and Ads1cognitive are statistically supported. Accordingly, first of all the hypotheses were tested comparing Ads1affective and Ads1cognitive with each other. Due to this, it can be stated that Ads1affective is more emotional than Ads1cognitive (10,87>1,98). Moreover, it was statistically confirmed that Ads1affective is affective-based advertisement (15,12>1,99) as well as Ads1cognitive is statistically approved as being cognitive-based advertisement (111,02>1,99). THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 61 Table 10. Student’s criteria for testing hypotheses of Innovation2 advertisements Student's Measures criteria for two Student's criteria for Student's criteria for sample one sample Ads2affective one sample Ads2cognitive 4 4 a (indifferent level) t (t-test) 12,95 344,76 665,82 k (degree of freedom) 170 82 99 α (significant level) 0,05 0,05 0,05 1,97 1,99 1,98 t_α/2 (k) (Student distribution) As with the Innovation1, the Table 10 statistically supports all hypotheses of Innovation2 advertisements. It can be claimed that Ads2affective is more emotional than Ads2cognitive (12,95>1,97). Furthermore, it can be generally said that Ads2affective is able to represent the affective-based advertisements (344,79>1,99), as well as Ads2cognitive can be noted as being cognitive-based advertisements (665,82>1,98). Table 11. Student’s criteria for testing hypotheses of Innovation3 advertisements Student's Measures criteria for two Student's criteria for Student's criteria for sample one sample Ads3affective one sample Ads3cognitive 4 4 a (indifferent level) t (t-test) 11,87 123,46 380,04 k (degree of freedom) 151 80 83 α (significant level) 0,05 0,05 0,05 1,98 1,99 1,99 t_α/2 (k) (Student distribution) The situation with the Innovatio3 is totally the same as with the previous product innovations. Following the Table11 it can be asserted that Ads3affective is more emotional than Ads3cognitive (11,87>1,98). In addition, it was statistically confirmed that Ads3affective is THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 62 affective-based advertisement (123,46>1,99) as well as Ads3cognitive is statistically proved as being cognitive-based advertisement (380,04>1,99). As expected, after comparing the means (Table 12) all advertisements provided in affective nature was perceived by respondents significantly more emotional rather than logical, more imaginative rather than informative and more feeling rising rather than encouraging to think. Need to be mentioned, that as the most affective-based advertisement was supported the Ads2affective with the total average score of 4,96. The last position in terms of level of emotions is taken by Ads1affective with the total average score of 4,45. Continuing with cognitive-based advertisement, as the most logical, informative and encouraging to think is recognized Ads3cognitive with the final score of 1,99. In addition, needs to be mentioned that such result has just supported the assumption, that print provided in cognitive nature is not necessarily needed to be interpreted as more cognitive than video only because of its descriptive format. This has particularly been the case why it was decided to remove Innovations1 and Innovations2 from experiment in order to minimize the possibility for the additional interpretations of the final results caused by different formats of affective and cognitive information placed in the moderator role. Consequently, according to the results it can be asserted that information provided in affective and cognitive natures is statistically supported as being representative of different kind of information and empirically can be approved as a moderator for the experiment designed for the purpose to evaluate the effect of affective and cognitive information type to product innovation judgment. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 63 Table 12. Descriptive statistics of evaluations affective-based and cognitive-based advertisements Affective information Product 1 Cognitive information Logical/ Informative/ Thinking/ Final Logical/ Informative/ Thinking/ Final Emotional Imaginative Feeling result Emotional Imaginative Feeling result Mean 4,79 4,02 4,54 4,45 2,07 2,17 2,05 2,10 St.dev. 1,69 1,93 1,74 1,58 1,28 1,42 1,55 1,21 Signific yes yes yes yes yes yes yes yes 84 84 84 84 86 86 86 86 ance* Respon dents Product Mean 5,20 4,75 4,92 4,96 2,46 2,90 2,28 2,55 2 St.dev. 1,42 1,60 1,63 1,30 1,33 1,71 1,45 1,19 Signific yes yes yes yes yes yes yes yes 83 83 83 83 80 80 80 100 Mean 4,52 4,46 4,49 4,49 2,02 2,12 1,83 1,99 St.dev. 1,65 1,73 1,75 1,52 1,22 1,48 1,28 1,15 Signific yes yes yes yes yes yes yes yes 81 81 81 81 84 84 84 84 ance* Respon dents Product 3 ance* Respon dents Experimental Design Identification of moderators roles. After receiving the results of the multiple check it was decided to conduct the experiment only with the Product3. Such a decision mainly is based for the purpose to avoid any external interactions that would cause the deviation of the main research question. Due to this, even the selected ads of Product1 and Product2 was statistically approved as being representatives of affective and cognitive information, the different types of ads – video and print – possibly could have an influence to the result of the THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 64 main experiment. As a result, according to the fact that the main aim of the present research is to manipulate with different nature of ads (affective vs. cognitive) rather than types of ads (audio vs. descriptive), ads of Product1 and Product2 needed to be eliminated. In addition, the ads of Product3 were statistically confirmed, as being able to represent affective - based and cognitive - based ads being in the same video format that will let to ensure the representativeness of the moderation effect. Consequently, the role of the main moderators in the research are taken by Ads3affective and Ads3cognitive (Table 6 or Appendix 3). Methodology. The sample (N) of the experiment was 277 participants. More women participated (63,2%) and participants mean age was 22. Participants were randomly assigned to one of the two advs – Ads3affective (N=136) versus Ads3cognitive (N=141). Each participant needed to evaluate Product3 responding to 24 questions on a 7 – point scale provided in a controlled laboratory environment using a computer-based survey (online software Qualtrics). Techniques for the statistical data analysis. According to the fact, that the model of experiment is based on the moderation - affective versus cognitive information as moderators - effects, multivariate linear regression analysis is going to be applied. Need to be empathized that in cases of moderation effects, all predictor variables and their interaction term play extremely important role in the overall model estimations seeking to improve interpretation of regression coefficients. Taking into account the model of the present research, product innovation attributes – compatibility, relative advantage, risk and complexity – as well as attitude toward product will take the role of predictors. In addition, interaction terms will be estimated between product innovation attributes because the latter tend to correlate amongst each other. Furthermore, for the purpose to be convinced that the selected model will reach statistically significant R2 score (how much variance the model of product innovation judgment is able to explain) more simple model without interaction term among product THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 65 innovation attributes will be tested and compared with the selected one. Multivariate linear regression analysis will be conducted using predictive analytics software SPSS. Procedure of experiment. After the manipulation check was conducted it was decided to continue the experiment only with one product innovation BC in order to ensure the representative outcomes and eliminate all possible external factors that would cause the deviation from the main research question. Consequently, two ads in video format with 2 minutes durations were randomly presented to the participants. Both advertisements had the same information in terms of quantity and quality, but it was provided in different nature – affective and cognitive. As it was mentioned above, both advertisements were statistically supported as being representatives of affective and cognitive information types. As a result, firstly after watching the video participants were asked to answer four questions related with attitude toward product on a 7 – point scale anchored at “Useful” to “Useless”, “Pleasant” to “Unpleasant”, “Nice” to “Awful”, “Important” to “Unimportant”. The survey is continuing with questions dedicated to evaluate product innovation through its attributes. Participants were asked to complete 7 – point scale adapted for different 19 questions dedicated to capture affective evaluations of product innovations attributes. The questionnaire has been prepared on the basis of the research conducted by Flight et al (2011), which has successfully developed a scale for measuring innovation attributes (Appendix 5). Finally, the participants completed the survey with the question dedicated to find out the participant’s intention to use the innovation (“Would you use it or not?”) on a 7 – point scale anchored at “I would definitely use” to “I would definitely not use”. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 66 Empirical Research Results It is fact that the research aim is to evaluate the effect of affective vs. cognitive information on product innovation judgment in as much comprehensive way as it is possible in order to ensure the validity of the results. Consequently, for the purpose to receive results that would provide meaningful findings about moderation effect (Ads3affective vs. Ads3cognitive), the interaction term between predictors (compatibility, relative advantage, risk and complexity) suppose to be estimated. It is so, because according to the literature analysis, the assumption can be made, that product innovation attributes interacting together can influence the overall judgment of product innovation. Subsequently, the chapter mainly consists of three parts: the results of the test of the research model representativeness, the final results of experiment and finally the short summary with regard to research question and hypothesis tested. Research Model Representativeness And Multivariate Data As it was mentioned above, in order to be convinced that the constructed model statistically proved as being representative the latter model should be empirically compared with the simplified one. Subsequently, it will be tested if it is statistically significant to estimate interaction term between selected product innovation attributes (compatibility, relative advantage, risk and complexity) in order to evaluate the moderation effect of Ads3affective vs. Ads3cognitive. The score R2 of the two models (with interaction terms and without it) is going to be compared for the purpose to be as much precise as it is possible. The score R2 shows how much variance in the product innovation judgment model is explained, due to this it is expected that the research model with interaction terms among product innovation attributes has higher R2 and this difference (between R2) is statistically significant. Consequently, the comparison of the score R2 will be estimated using F test: THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 𝐹𝑓−𝑟,𝑁−𝑓−1 = 67 (𝑁 − 𝑓 − 1)(𝑅𝑓2 − 𝑅𝑟2 ) (𝑓 − 𝑟)(1 − 𝑅𝑓2 ) Where: f - the number of parameters in the model with interaction effects r - the number of parameters in the model without interaction effects N - is sample size Taking everything into account what was mentioned above, in order to use F test for proving the representativeness of the constructed research model numbers of estimations need to be performed for both models. For the following estimations, according to the fact, that affective and cognitive information are qualitative variables therefore their effect type codes them so that we could use the comparison with grand mean. Due to this, in the present research 1 codes the Ads3affective, while -1 indicates Ads3cognitive. As a result, dummy coding (e.g. cognitive information = 0 and affective information =1) is not used in order to be more precise and avoid calling one group as a control ones. Based on the multivariate regression the model that not includes interaction term between products innovations attributes has been specially constructed for the present research. Due to the fact, that this chapter is dedicated to discuss the results, the latter model (later will be called as a simple model) is expressed in the way of the mathematical formula provided in the Figure 6. Consequently, simple model would evaluate product innovation judgment with moderation effect of Ads3affective vs. Ads3cognitive as follows in the Figure 6 using multivariate regression analysis: THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 68 =α+ (1) + β1* Attitude + (1) + β2 * Compatibility + (2) + β3 * [Relative advantage] + (3) + β4 * [Risk and complexity] Figure 6. Product Innovation judgment with the simple model The simple model would be able to test hypothesis as shows the Table 13: Table 13. Hypotheses of the simple model H1 Compatibility is directly related with product innovation judgment H2 Relative Advantage is directly related with product innovation judgment H3 Risk and Complexity is directly related with product innovation judgment H5 Attitude toward is directly related with product innovation judgment H6 Affective-based and Cognitive-based Ads is directly related with product innovation judgment H7 Affective-based ads (as opposed to cognitive based ads) have a positive moderating influence on the effect between product innovation attributes and product innovation judgment H8 Affective-based ads (as opposed to cognitive based ads) have a positive moderating influence on the effect between attitude toward product and product innovation judgment In order to evaluate the simple model, first of all correlations of predictors and outcomes need to be estimated (Table 14). In addition, estimations of correlations provide the first meaningful findings related with the main aim of the present research. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 69 Table 14. Correlations in regards with the simple model Attitude Relative Risk and Innovation advantage complexity judgment Compatibility Attitude 1,000 0,752 0,596 0,231 0,690 Compatibility 0,752 1,000 0,596 0,320 0,670 Relative advantage 0,596 0,596 1,000 0,362 0,457 Risk and complexity 0,231 0,320 0,362 1,000 0,243 Innovation judgment 0,690 0,670 0,457 0,243 1,000 Secondly, the multivariate regression analysis was conducted in order to test the hypothesis of the first model. Following the data of the Table 14 it can be claimed that all hypotheses are statistically supported with the one-tale 5% significance level. Subsequently, estimations of coefficients being greater than zero and σ value (the probability that coefficient value significantly differs from zero) being lower than desired 5% significance level indicates that attitude toward product and all four product innovations attributes are directly related with product innovations judgments. Moreover, it can be claimed that product innovation judgment has the strongest relationship with attitude toward product (0,690). This leads to the fact that the general evaluation that customers make about the product innovation has the strongest impact to the overall product innovation judgment. Considering product innovations attributes, unexpectedly none of the most frequently by the researchers tested attributes such as relative advantage (0,457) and risk and complexity (0,243) was identified as having the strongest relationship with the product innovation judgment. While compatibility (0,670) showed significantly higher correlation to the product innovation than three others, already discussed innovation attributes. Need to mention that the latter attribute was not stated as being frequently tested by previous researchers and was added to the model THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 70 only as an additional predictor in the respect of the increasing customers need for personalization. Continuing with correlations, as Table 14 indicates all the correlation values are significant with 5% two-tails significant level. In addition, for the purpose to decrease the correlation standardized variables have been used. Due to this, standardized value is created deducting the average value from the original value and dividing the difference by standard error using the formula as follows: 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑡𝑖𝑧𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 = 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑣𝑎𝑙𝑢𝑒 − 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑣𝑎𝑙𝑢𝑒 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑒𝑟𝑟𝑜𝑟 After the correlation values were standardized the multivariate regression model of the simple model was evaluated as provided in the Table 15. Table 15. Multivariate data of the simple model Variable Value (β) Standard Error σ (Sig.,) Constant 0,635 0,557 0,025 Attitude 0,563 0,104 0,000 Compatibility 0,503 0,120 0,000 Relative advantage 0,310 0,093 0,007 Risk and complexity 0,590 0,081 0,000 As the results of the multivariate regression show, all variables are approved as being statistical significant with one-tale 5% significance level (σ < 5%). In addition it can be asserted that the quantity of variance that the simple model is able to explain is equal to R2 = 0,520. After the estimations of the simple model are done, the model with interaction term between product innovation attributes (latter will be called as improved model) and moderation effect of Ads3affective vs. Ads3cognitive need to be evaluated. Consequently, the THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 71 mathematical expression of the research model, which has been already presented in the previous chapter as being constructed on multivariate regression model is provided in the Figure 7. The Figure 7 shows that the interacted variables are described as follows: Interacted variable = Variable * [Affective or cognitive information] =α+ + β1* [Affective of cognitive information] + + β2* Attitude + β3 * [Interacted attitude] + + β4 * Compatibility + β5 * [Interacted compatibility] + + β6 * [Relative advantage] + β7 * [Interacted relative advantage] + + β8 * [Risk and complexity] + β9 * [Interacted risk and complexity] + β10 * [Compatibility and Relative advantage] + β 11 * [Interacted Compatibility and Relative advantage] + β12 * [Compatibility and Risk and complexity] + β 13 * [Interacted Compatibility and Risk and complexity] + β14 * [Relative advantage and Risk and complexity] + β15 * [Interacted Relative advantage and Risk and complexity] + β16 * [Compatibility and Relative advantage and Risk and complexity] + β 17 * [Interacted Compatibility and Relative advantage and Risk and complexity] Figure 7. Innovation judgment with the improved model Consequently the main difference between the simple model and the improved model can be expressed by three additional hypotheses (Table 16) that can be tested by the improved model as well as all other hypothesis identified for this research: THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 72 Table 16. Hypothesis of interaction terms between product innovation attributes 4a Interaction of Compatibility and Relative Advantage is directly related to the product innovation judgment H4b Interaction of Compatibility and Risk and Complexity is directly related to the product innovation judgment H4c Interaction of Relative Advantage and Risk and Complexity is directly related to the product innovation judgment THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 73 According to the fact, that correlation of predictors are already estimated, the results of multivariate regression of improved model is presented in the Table 17. Table 17. Multivariate data of the improved model Variable Value (β) Standard Error σ (Sig.) (α )Constant 0,391 0,017 0,000 Affective or cognitive information 0,211 0,104 0,000 Attitude 0,754 0,158 0,000 Interacted attitude 0,196 0,086 0,037 Compatibility 0,949 0,172 0,000 Interacted compatibility 0,135 0,013 0,000 Relative advantage 0,272 0,099 0,007 Interacted relative advantage 0,067 0,014 0,006 Risk and complexity 0,203 0,048 0,015 Interacted risk and complexity 0,107 0,017 0,000 Compatibility and Relative advantage 0,382 0,114 0,001 Interacted Compatibility and Relative advantage 0,076 0,011 0,005 Compatibility and Risk and complexity 0,343 0,147 0,020 Interacted Compatibility and Risk and complexity 0,161 0,015 0,000 Relative advantage and Risk and complexity 0,341 0,140 0,016 Interacted Relative advantage and Risk and complexity 0,061 0,014 0,007 Compatibility and Relative advantage and Risk and 0,204 0,091 0,026 0,141 0,031 0,040 complexity Interacted Compatibility and Relative advantage and Risk and complexity Following the data provided in the Table 17, all the hypotheses of the improved model are supported. As a result, it can generally be said that product innovation attributes and THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 74 attitude toward product moderated by Ads3affective vs. Ads3cognitive are directly related to the product innovation judgment, because all values gained are statistically significant using onetail 5% significant level (σ >5%). Needs to be mentioned, that the improved model approved the assumptions made after the estimations of correlations of predictors. Due to this, attitude toward product can be distinguished as having the strongest influence to the product innovation judgment with the value of 0,754. Consequently, it can be stated that the quantity of variance that the improved model explains is equal to R2 = 0,609. To sum up, after the multivariate regression analysis has been performed for both simple and improved models the comparison of the scores R2 was implemented while applying the F test formula, which was introduced at the beginning of the section. The following F test results were gained: 𝐹= 259 ∗ 0,079 = 4,0235 > 0,449 = 𝐹13,267 (0,05) 13 ∗ 0,391 In respect to the results, it can be noted that F test value is significantly higher than F distribution value with 5% probability. Taking this into account, we can come to a conclusion that the model with interaction term between innovation attributes (improved model) has statistically higher representativeness than the model without interactions terms involved (simple model). Consequently, after the model is statistically proved the effect of moderators – Ads3affective vs. Ads3cognitive are going to be analyzed in the second section. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 75 Result of Experiment After the model was proved as being representative to analyze the effect of Ads3affective vs. Ads3cognitive to product innovation judgment, the Figure 8 shows how the results of multivariate regression analysis are applied to the mathematical expression of the research model. Innovation judgment = 0,391 (α) + + 0,211 (β1 ) * [Affective of cognitive information] + +0,754 (β2 ) * Attitude + 0,196 (β3) * [Interacted attitude] + + 0,949 (β4 ) * Compatibility + 0,135(β5) * [Interacted compatibility] + + 0272 (β6) * [Relative advantage] + 0,067(β7) * [Interacted relative advantage] + + 0,203 (β8) * [Risk and complexity] + 0,107 (β9)* [Interacted risk and complexity] + +0,382 (β10) * [Compatibility and Relative advantage] + 0,076(β11) * [Interacted Compatibility and Relative advantage] + 0,343 (β12)* [Compatibility and Risk and complexity] + 0,161(β13) * [Interacted Compatibility and Risk and complexity] + 0,341 (β14)* [Relative advantage and Risk and complexity] + 0,061(β15) * [Interacted Relative advantage and Risk and complexity] + 0,204 (β16 )* [Compatibility and Relative advantage and Risk and complexity] + 0,141(β17) * [Interacted Compatibility and Relative advantage and Risk and complexity] Figure 8. Final results of experiment (moderation effect of Ads3affective vs. Ads3cognitive through product innovation attributes and attitude toward product) Comparing the affect of affective vs. cognitive information to the product innovation judgment. For the purpose to compare the effect of affective and cognitive information to the product innovation judgment the data collected with the moderator Ads3affective (was coded by 1) and the data gathered with the Ads3affective (was coded with -1), THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 76 were applied into the regression model. Consequently after summarizing the results of the experiment (Table 18), it becomes obvious that Ads3affective have statistically significant more positive moderating effect on the overall product innovation judgment than Ads3cognitive. These results are supported by the fact that participants that judged product innovation on affective nature based information had the 3,89 average value of the product innovation judgment while the average value of other group of participants is 3,02 (using information provided in cognitive nature). Student’s test confirms that the difference between these averages is statistically significant at 5% one-tail significance level. In addition, should be mentioned, that Ads3affective caused 3,3 times better evaluation of the product innovation than Ads3cognitive, before the moderation effect to the predictors has occurred (proportion of constants 0,602/0,180). However, in order to test the main hypothesis of the research the results need to be compared in regards with product innovation attributes as well as attitude toward product. Table 18. The effect of affective vs. cognitive information on product innovation judgment Ads3affective Ads3cognitive (β) (β) Variable (α) (Constant) 0,602 0,180 Attitude 0,950 0,558 Compatibility 1,084 0,814 Relative advantage 0,339 0,205 Risk and complexity 0,310 0,096 Compatibility and Relative advantage 0,458 0,306 Compatibility and Risk and complexity 0,504 0,182 Relative advantage and Risk and complexity 0,402 0,280 Compatibility and Relative advantage and Risk and complexity 0,345 0,063 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 77 Effect of affective information to product innovation judgment (as opposite to cognitive information) with predictors of product innovation attributes. It was statistically confirmed that interaction between product innovation attributes has statistically significant influence on the product innovation judgment. Consequently, the Table 18 involves values of the moderated effect of separate product innovation attributes as well as moderated effect of interaction between product innovation attributes. The results provided in the Table 18 shows that the hypothesis H7 - affective-based ads (as opposed to cognitive based ads) have a positive moderating influence on the effect between product innovation attributes and product innovation judgment - is statistically confirmed. It is fact, that participant who evaluated the product innovation with respect to affective information tended to perceive it as less risky and complex (affective: 0,339; cognitive: 0, 096). In addition, participants who randomly received affective information assessed relative advantage of the product innovation with higher scores in contrast to participants who got the cognitive information (affective: 0,339; cognitive: 0,205). The same situation occurred with the compatibility attribute, the affective information moderated the effect where participants conceived product innovation as being more easily applied to their personal life and social environment, while cognitive information caused lower compatibility scores assigned by participants (affective: 1,084; cognitive: 0,814). Effect of affective information to product innovation judgment (as opposite to cognitive information) with predictors of attitude toward product. How it was noted in the literature analysis and statistically confirmed by the model of the present research, attitude toward product has a direct effect to the product innovation judgment. As the Table 16 shows, the hypothesis - H8 affective-based ads (as opposed to cognitive based ads) have a positive moderating influence on the effect between attitudes toward product to the product innovation judgment - was statistically approved too. Due to this, it was confirmed that THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 78 participants after having randomly received affective information tended to form more positive attitude toward product that caused better overall evaluation of the product innovation judgment (affective: 0,950; cognitive: 0,558). Conclusion of the research results. To sum up, the research model has been successfully applied and the result of the experiment has supported all the hypotheses. Consequently, it was statistically approved that a moderator variable (affective or cognitive based ads) changes the strength of an effect between predictors (attitude toward product and product innovation attributes) and the product innovation judgment (intension to use). Taking this into account it can be claimed that the effect of affective information (as opposite to cognitive) significantly contributes on the strength of this relationship. In addition, affective information as apposite to cognitive being as a moderator does not tend to change its direction in terms of its effect. It means, that affective information cause not only more positive attitude toward product (as opposite to cognitive information) and better evaluation of product innovation attributes, but even strengthen the possibility of the customer’s intention to use the product innovation that is indicated by better score of product innovation judgment. Moreover, the results of the research have showed, that attitude toward product is statistically approved as being the strongest predictor of product innovation judgment while the moderation effect of affective vs. cognitive information occur. Furthermore, the results confirmed the importance of interaction term of the product innovation attributes. It was statistically approved, that moderator of affective information significantly effect stronger and more positive interaction not only between the product innovations attributes and product innovation judgment (intension to use), but also interaction among product innovation attributes. Consequently, the results show that the relationship between product innovation attributes and product innovation judgment is stronger, when affective information effect not each of the product innovation separately, but their interaction terms. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 79 Table 19. Evaluation of the hypotheses H1 Compatibility is directly related to the product innovation judgment Accepted H2 Relative Advantage is directly related to the product innovation judgment Accepted H3 Risk and Complexity is directly related to the product innovation judgment Accepted H4a Interaction of Compatibility and Relative Advantage is directly related to the product Accepted innovation judgment H4b Interaction of Compatibility and Risk and Complexity is directly related to the product Accepted innovation judgment H4c Interaction of Relative Advantage and Risk and Complexity is directly related to the Accepted product innovation judgment H5 Attitude toward brand (Product) is directly related to the product innovation judgment Accepted H6 Affective-based and Cognitive-based ads is directly related to the product innovation Accepted judgment H7 Affective-based ads (as opposed to cognitive based ads) have a positive moderating Accepted influence on the effect between product innovation attributes and product innovation judgment H8 Affective-based ads (as opposed to cognitive based ads) have a positive moderating influence on the effect between attitudes toward brand (product) to the product innovation judgment Accepted THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 80 Discussion The chapter discusses the main findings of the present research in the context of previous studies conducted. In addition, the contributions of the findings are considered with regard to the theoretical implications for both concepts of the present research: product innovation judgment and affective and cognitive information. Necessarily, the chapter presents practical implications of the findings for marketing practitioners from the innovation management field. For the conclusion, limitations of the present research are identified as well as suggestions for the future researches are provided. Synthesis Of Research Findings The aim of the present research was to evaluate the effect of affective versus cognitive information on product innovation judgment. For this purpose, the research model was constructed on the basis of theoretical analysis of the previous researches and conducted applying experiment as a research method for the empirical testing of hypothesis with a sample of Lithuanian consumers. The results of the research showed that information provided in an affective nature (affective-based ads) caused more positive product innovation judgment than information received in a cognitive-nature (cognitive-based ads). Consequently, findings indicate important insights about customer’s behavior regarding product innovation judgment for both theoretical and practical implications. While making a synthesis of the research findings, need to mention, that much of the attention was dedicated for identifying reliable moderators in order to ensure the validity of the research model and overall findings. Due to this, based on the findings from the pervious researchers it was decided to apply advertisement as the best type for the communication of information for the product innovations (Manchanda et al., 2008; Narayanan et al., 2005). The empirical testing of advertisements of three product innovations (Innovation1, THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 81 Innovation2, Innovation3) has led to the assumption that marketing tools that are using to create a certain nature (affective or cognitive) of advertisements, in other words a certain nature to communicate the information, can be successfully applied for the different kinds of advertisements such as video and print. Hence, the results of the pre-experiment denied the predictions, that the tested print, because of it’s descriptive format, will be evaluated by the participants as being more logical, informative and encouraging to think than only one cognitive-based video. As a result, even all of the empirically assessed advertisements created in a cognitive nature were statistically approved as being cognitive-based ads, the most logical, informative and encouraging to think was conceived video instead of two print tested. Consequently, the results supported the early approach provided by Crite et al (1994), which claims that the only one way to distinguish affective and cognitive information is to evaluate the level of presentation, which not necessarily depends on the advertisement type or any other kind of communication. However, in order to minimize the possibility to deviate from the main purpose of the research, date of the main experiments were gathered using only one advertisement type (video ads) for communicating information in two different nature (affective and cognitive). Subsequently, the main findings of the experiment confirmed the assumption, that customers are tend to use affective instead of cognitive process while evaluating information in order to make innovation judgment. This was statistically approved after manipulation with two different advertisements of the same product, same duration and the same quality and quantity of information about the innovation but in different presentation nature (affective and cognitive). Consequently, such findings can be explained while taking into account findings of the researchers conducted in psychology and neuroscience field, who claim that customers are more willing to make plausible judgment that comes to the mind on the spot rather than being to be involved in logical thinking (Wood, 2014). Due to this, as the THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 82 findings of the present research show customers’ information behavior which leads to their decision making can be effected by emotional arousal. Implications For Theoretical Understanding Of Product Innovation Judgments Numbers of literature investigating product innovation adoption analyzed it with a central focus on cognitive process (Wood & Moreau, 2006). However, the need for alternative understanding what process customers really use for judging the innovation become obvious for numbers of reasons. First of all, extensive line of scholars and practitioners started to empathize the increasing importance of the innovations, which is noted to be one of the most effective ways to create a strong competitive advantage in a saturated, extremely competitive markets. Due to this, currently scholars have been working more broadly to understand the customer behavior in the context of psychology and neuroscience, because it started to be extremely difficult to predict customer’s decisions relying only on the assumptions that are based on logical explanations. In addition, researchers from the advertising field provided numbers of empirical evidences showing even the dominant role of affective instead of cognitive based advertisements while influencing the customer to make a positive decision toward product. Taking everything into account the present research contributed to the theoretical understanding of product innovation judgment while providing empirical evidences that even the process is conceived as an uncertainty reduction ones it is not necessarily are based on cognitive process. Findings of the present research indicate that potential adopter who evaluates information about product innovation in order to reduce uncertainty and make a decision can be influenced by the way in which information is communicated. Specifically, findings support the approach of King and Slovic (2014), which is based on the fact that overall THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 83 judgment of the product innovation is influenced by customer’s affective evaluation of risk and benefit. The contribution of this paper includes the development of innovation adoption process, while deeper investigating the first stage in the adoption process, which consist of customers’ information evaluation about the innovation (Roger, 2003). Need to empathize, the approach that product innovation adoption is inseparable with information assessment is supported by numbers of scholars (Plewa, Troshani, Francis & Rampersad, 2012; Sääksjärvi & Morel 2010; Azadegan & Teich, 2010; Flight et al., 2011; Cui, Bao, Chan, 2009; King & Slovic, 2014; Seligman 2006; Hirunyawipada & Paswan, 2006; Arts et al., 2011). Consequently, each of the finding related to this stage of the adoption process become even more important because it was proven in numbers of studies as playing extremely important role for customer’s decisions. Moreover, researchers have long maintained an interest to understand product innovation attributes that are assumed to be the main measures in order to evaluate customer’s decisions regarding product innovation judgment (Flight et al.,). Taking this into account, findings of the present research show how affective and cognitive information effect four, approved as one of the most valuable product innovation attributes: compatibility, relative advantage, risk and complexity. Implications For Theoretical Understanding Of Affective And Cognitive Information Extensive spectrum of studies has been carried out for the purpose to understand customer’s behavior in terms of information use. Due to this, even the term “information behavior” was identified and started to be widely analyzed by academics in order comprehend what process individual proceeds for using information. The findings of the present research contribute to the deeper understanding of how customer’s information behavior is influenced by the information provided in different nature – affective and cognitive. Findings of the present THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 84 research support psychological theory, which claims that emotional arousal (specificity of affective information) is able to reduce the possibility that rational arguments (septicity of cognitive information) will play a dominant role in customer’s decision making (Wood, 2014). Hence, the results of the experiment showed that affective information has caused more positive judgment of product innovation than cognitive information, and the different of judgment was statistically significant (judgment caused by affective information was 3 time higher). Moreover, need to empathize, that manipulation with different kind of information was conducted in the product innovation judgment which is conceived as being uncertainty reduction process where potential adopter use information in order to understand risks and benefits of the innovation (Hoeffler, 2003; King & Slovic, 2014; Saaksarjvi et al., 2015 ). Consequently, the results of the present research demonstrated that affective information was able even to reduce the perceived risk (product innovation was evaluated as being 3 times less risky and complex) and increase the perceived benefit (product innovation was evaluated as being 1,7 times more beneficial). Accordingly, it can be claimed, that cognitive information which is based on a rational, exclusively clear presentation of the product innovation does not encourage customers to feel more informed and save in terms of possible risk of the innovation. Due to this, the present research support the approach that emotions aroused by the affective information makes customer to feel more positive which leads to more fast, unconscious and associative evaluation of information and more positive attitude toward product. Furthermore, results of the present research approved one more approach from psychology field which is based on the fact, that lack of emotions can even cause the interfere in customers decision making process (Wood, 2012). As a result, cognitive information can has even the harmful effect on innovation judgment rather than helping to reduce the feelings of uncertainty. Therefore, all tested predictors of product innovation THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 85 judgment – product innovation attributes and attitude toward product – were assessed with significanly lower scores after providing cognitve information. Implications For Innovation Management Marketing part is stated to be one of the most substantial and expensive determinants of innovation success (Avlonitis & Papastathopoulou, 2000). Consequently, extensive line of nowadays companies still trying to find the answer what is the key factor for launching a successful innovation. Due to this, meaningful findings of the present research leads marketers specialists to better understanding of the customer behavior in terms of two different communication strategies for the product innovations. Understanding how customer interprets information provided in two different nature could become the basis for the future launch campaigns for most radical or simple incremental innovations. Findings uncover for the marketers the specificities of customer’s decision making in regards with product innovation judgment from the psychological point of view, while empathizing the dominant role of the affective factors. Subsequently, the research provides significant insights about most important product innovation attributes that can help the marketer to prepare as much effective characteristic-based description of product innovation as it is possible. This knowledge allows marketers to become more customer oriented while selecting the best communication strategy for reaching the target audience and influencing their positive decision toward innovation in as much effective way as it is possible. Hence, using findings of the present research can help marketers to create more value for the company as well as for the customers who do not want to be attacked by the information, which leads them to bigger considerations, rather than make their decision process to be easier. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 86 Limitations As with any research the present study has limitation. First and foremost limitation is related to the reliance of the samples during the experiment implementation. The samples of the preexperiment were drawn from students at a single university in order to ensure the homogeneity. However, the main experiment was conducted with significantly less homogenous because of the purpose to reach the representative sample size. Such a situation is not enable to ensure, that all external factors such us different age, social class etc. are totally eliminated in order to be sure that the final results are impacted only by the manipulation of the main moderators (affective-based ads and cognitive-based ads). A second limitation is the modest quantity of moderators tested. Because of the selected types advertisements and the results of the pre-experiment it was decided to make experiment only with one innovation with the aim to gain results that would answer to the main question of the research without any deviations, supposedly caused by external factors such as different format of advertisements (video vs print). Suggestions For Future Research There is no doubt that there is a need for continued research in this field. First of all future research needs to examine and test effect of affective and cognitive information on the product innovations that be assigned to the high-involvement product category. There is even the theoretical possibility, that the judgment of high-involvement product innovations can receive statistically different effect made by affective and cognitive information than the present study showed with product innovations that require fewer customers’ involvement to be adopted. Such assumptions can be made because of the different level of uncertainty, due to this findings of the future research would help to compare the process that customers use THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 87 in order to judge different type of product innovations with the effect of affective and cognitive information. In addition, future research can contribute to the present research while testing the effect of affective and cognitive information on product innovation with the wider range of moderators. Manipulation with a larger amount of moderators would help to confirm the approach of the present study or would uncover more important insights for both theoretical and managerial implications in the discussed field. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 88 Conclusion The aim of the present research was to evaluate the effect of affective versus cognitive information on product innovation judgment. For this purpose the research model was constructed on the basis of multivariate regression analysis with the moderation effect. The experiment was applied as the most suitable research method for the present research because of its specificity to test causal relationship between two or even more variables. In order to ensure the validity of the experiment, pre-experiment were conducted with the aim to empirically test and select the most suitable moderators – affective-based Ads and cognitivebased Ads. According to the results of the study, two major issues have been identified: affectivebased Ads statistically approved as having more positive influence on the effect between product innovation attributes and product innovation judgment as well as affective-based Ads statistically approved as having more positive influence on the effect between attitude toward product and product innovation judgment. It is important to empathize, that advertisement was selected as a communication type for the purpose to ensure the most effective way to test the effect of information provided in two different natures. Consequently, the results are significant for both academic research and marketing practitioners. For the theoretical implications the present study contributes while providing alternative explanation of the product innovation judgment process with the dominant role of affective information rather than cognitive ones. Moreover, the study clearly indicates the link between marketing and psychology science in regards with deeper understanding of customer behavior in product innovation judgment in the perspectives of affective and cognitive information use. In addition, findings of the results are applicable even for the developing deeper theoretical understanding about the customer’s responses toward advertisements certainly in context of product THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 89 innovation judgment. From the marketing management perspectives, practitioners are provided by numbers of meaningful insights about customer’s behavior in terms two different communication strategies (affective information versus cognitive) for the product innovations. Due to this, these findings can even become the basis for the affective-based launch campaigns to be prepared for the future innovations. To sum up, the main aim of the research is achieved. The experiment resulted in the acceptance of all the hypothesis of the research. It was statistically confirmed that affective information cause more positive (as apposite to cognitive information) overall judgment of product innovation with the product innovation attributes and attitude toward product as predictors. Should be to mention, that further research needs to be conducted in order to ensure sufficient variety of ways (e.g. more different ads of different products etc.) in which affective and cognitive information could be provided. In addition, the effect of affective and cognitive information on product innovation judgment should be examined involving into the experiment product innovations that would be assigned to the highinvolvement product category for the purpose to investigate weather the type of product innovation has a statistical significant influence on the overall judgment. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 90 References Aboulnasr, K., Narasimhan, O., Blair, E., Chandy, R. (2008). Competitive response to radical product innovations, Journal of Marketing, 72 (3), 94-110. Adams, R., Tranfield, D., Denyer,. D. (2013). Process antecedents of challenging, undercover and readily-adopted innovations. Journal of Health Organization and Management, 27 (1), 42 – 63. Agarwal, R., & Prasad J., (1997). The role of innovation characteristics and perceived voluntariness in the acceptance of information technologies. Decision science, 28 (3). Ajzen, I., (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50 (2), 179-211. Armony, J., Vuilleumier, P., (2013). The Cambridge handbook of human affective neuroscience. Cambridge university press. 36-42. Arts, J. W. C., Frambach, R. T., Bijmolt, T. H. A. (2011). Generalizations on consumer innovation adoption: a neta-analysis on drivers of intention and behavior. International Journal of Research in Marketing, 28 (2), 134–144. Avlonitis, G. J., Papastathopoulou, P., (2000). Marketing communications and product performance: innovative vs non-innovative new retail financial products. International Journal of Bank Marketing, 18 (1), 27 – 41. Azadegan, A., Teich, J., (2010). Effective benchmarking of innovation adoptions. Benchmarking: An International Journal, 17 (4), 472 – 490. Bachara, A., Damasio H., Damasio A. R., (2000). Emotion, decision making and the orbitofrontal cortex. Cerebral Cortex, 10 (3), 295 – 307. Balachandra, R. & Friar, J. H., (1997). Factors for success in R&D projects and new product innovation: a contextual Management, 44 (3), 276-87. framework. IEEE Transactions on Engineering THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 91 Baregheh, A., Rowley, J., Sambrook, S., Davies, D., (2012). Food sector SMEs and innovation types. British Food Journal, 114 (11), 1640 – 1653. Batra, R., Ray L. M., (1986). Affective responses mediating acceptance of advertising. Journal of Consumer Research, 13 (2), 234 – 249. Batra, R., Ray, M. L., (1986). Affective responses mediating acceptance of advertising. Journal of Consumer Research, 13 (2), 234-249. Baumeister, R. F., Vohs, K. D., DeWall, C. N., Zhang, L., (2007). How emotion shapes behaviour: feedback, anticipation, and reflection, rather than direct causation. Personality and Social Psychology Review, 11 (2), 167. Bellantuono, N., Pontrandolfo, P., Scozzi, B. (2013). Different practices for open innovation: a context-based approach. Journal of Knowledge Management, 17 (4), 558 – 568. Bessant, J. & Tidd, J., (2007). Innovation and entrepreneurship. John Wiley & Sons, Chichester. Bigliardi, B., Dormio, A. I., Galati, F. (2012). The adoption of open innovation within the telecommunication industry. European Journal of Innovation Management, 15 (1), 27 – 54. Blythe, J. (1999). Innovativeness and newness in high-tech consumer durables. Journal of Product & Brand Management, 8 (5), 415 – 429. Blythe, J. (2002). Communication and innovation: the case of hi-fi systems. Corporate Communications: An International Journal, 7 (1), 9–16. Burford, S., Park, S. (2014). The impact of mobile tablet devices on human information behavior. Journal of Documentation, 70 (4), 622 – 639. Calantone, R. G., Chan, K., Cui, A. S. (2006). Decomposing product innovativeness and its effects on new product success. Journal of Product Innovation Management, 23 (5), 408-421. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 92 Čekanavičius V., Murauskas G., (2003). Statistika ir jos taikymas (172-175). Leidykla TEV, Akatamedijos g. 4. Chesbrough, H. W. (2007). Why companies should have open business models. Sloan Management Review, 48 (2), 22-28. Clore, G. L., Schwarz, N., Conway, M. (1994). Affective causes and consequences of social information processing. In Wyer, R.S. Jr. & Srull, T. K. (Eds.), Handbook of Social Cognition 2nd ed., Lawrence Erlbaum Associates, Hillsdale, NJ. Crite, L. S., Fabrigar, R. L., Petty, R. E. (1994). Measuring the affective and cognitive properties of attitudes: conceptual and methodological issues. Society of Personality and Social Psychology, 20 (6), 619-634. Cui, G., Bao, W., Chan, T. S. (2009). Consumers' adoption of new technology products: the role of coping strategies. Journal of Consumer Marketing, 26 (2), 110 – 120 Damasio, A. R. (1994). Descartes' error: Emotion, reason, and the human brain. New York: Putnam, 206 – 222. Davis, F. D. (1989). Perceived usefulness, uerceived ease of use, and user acceptance of information technology. MIS Quarterly, 13 (3), 319–340. De Sousa, R., (2009). Rationality. In Saunder, D. and Scherer, K. R. (Eds), The Oxford companion to emotion and the affective sciences. New York, Oxford University Press, 329. Dewar, R. D. and Dutton, J. E. (1986). The adoptions of radical and incremental innovations. Management Science, 32 (11), 1422-1433. Doran, J., (2012). Are differing forms of innovation complements or substitutes. European Journal of Innovation Management, 15 (3), 351 – 371. Duarte, V., Sarkar, S., (2011). Separating the wheat from the chaff – a taxonomy of open innovation. European Journal of Innovation Management, 14 (4), 435 – 459. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 93 Elliot, S. & Loebbecke, C. (2000). Interactive, inter-organizational innovations in electronic commerce. Information Technology & People, 13 (1), 46-66. Elwood, S., Changchit, C., Cutshall, R., (2006). Investigating students' perceptions on laptop initiative in higher education. Campus-Wide Information Systems, 23 (5), 336 – 349. Ettlie, J. E., Groves, K. S., Vance, C. M., Hess, G. L. (2014). Cognitive style and innovation in organizations. European Journal of Innovation Management, 17 (3), 311 – 326. Evangelista, P., McKinnon, A., Sweeney, E. (2013). Technology adoption in small and medium- sized logistics providers. Industrial Management & Data Systems, 113 (7), 967 – 98. Firka, D. (2011). Statistical, technical and sociological dimensions of design of experiments. The TQM Journal, 23 (4), 435 – 445. Flight, R. L., D'Souza, G., Allaway, A. W., (2011). Characteristics-based innovation adoption: scale and model validation. Journal of Product & Brand Management. 20 (5), 343 – 355. Fort-Rioche, L., Ackermann, C. L, (2013). Consumer innovativeness, perceived innovation and attitude towards “neo-retro”-product design. European Journal of Innovation Management, 16 (4), 495 – 516. Francis, D. and Bessant, J. (2005). Targeting innovation and implications for capability development. Technovation, 25 (3), 171-83. Fulton, C., (2009). The pleasure principle: the power of positive affect in information seeking. Aslib Proceedings: New Information Perspectives, 62 (3), 245-261. Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: a literature review. The Journal of Product Innovation Management, 19 (1), 110-32. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 94 Garrido-Rubio A., Polo-Redondo Y. (2005). Tactical launch decisions: influence on innovation success/failure. Journal of Product & Brand Management, 14 (1), 29 – 38. Gil-Saura, I., Ruiz-Molina, M. E. (2008). Perceived value, customer attitude and loyalty in retailing. Journal of Retail & Leisure Property, 7 (40), 305–314. Gillier, T., Kazakci, A. O., Piat, G. (2012). The generation of common purpose in innovation partnerships. European Journal of Innovation Management, 15 (3), 372 – 392 Gremyr I., Löfberg, N., Witell, L. (2010). Service innovations in manufacturing firms. Managing Service Quality: An International Journal, 20 (2), 161 – 175. Gunter, B. (2008). Trends in digital information consumption and the future. In D. Nicholas & I. Rowlands (Eds.), Digital consumers: reshaping the information profession (193212). London: Facet Publishing. Häggman, S. K. (2009). Functional actors and perceptions of innovation attributes: influence on innovation adoption. European Journal of Innovation Management, 12 (3), 386 – 407. Häggman, S. K. (2009). Functional actors and perceptions of innovation attributes: influence on innovation adoption. European Journal of Innovation Management, 12 (3), 386 – 407. Hassanien, A., Dale, C. (2012). Drivers and barriers of new product development and innovation in event venues. Journal of Facilities Management,10 (1), 75 – 92. Heiskanen, E., Hyvönen K., Niva, M., Pantzar, M., Timonen, P., Varjonen, J. (2007). User involvement in radical innovation: are consumers conservative?. European Journal of Innovation Management, 10 (4), 489 – 509. Hepworth, M. (2007). Knowledge of information behavior and its relevance to the design of people-centred information products and services. Journal of Documentation, 63 (1), 33 – 56. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 95 Herrmann, A., Tomczak, T., Befurt, R., (2006). Determinants of radical product innovations. European Journal of Innovation Management, 9 (1), 20 – 43. Hess, J. D., Bacigalupo, A., C. (2011). Enhancing decisions and decision – making processes through the application of emotional intelligence skills. Management Decision, 49 (5), 710 – 721. Hirunyawipada, T., Paswan, A. K., (2006). Consumer innovativeness and perceived risk: implications for high technology product adoption. Journal of Consumer Marketing, 23 (4), 182 - 198 Hoeffler, S. (2003). Measuring preferences for really new products. Journal of Marketing Research, 40 (4), 406-20. Hristov, L., Reynolds, J., (2015). Perceptions and practices of innovation in retailing. International Journal of Retail & Distribution Management, 43 (2), 126 – 147. Huitt, W., & Cain, S. (2005). An overview of the conative domain. Educational Psychology Interactive. Valdosta, GA: Valdosta State University. Retrieved [March, 2015] from http:/www.edpsycinteractive.org/brilstar/chapters/conative.pdf . Huy, H., Svein, T., Olsen, O., (2012). Certainty, risk and knowledge in the satisfactionpurchase intention relationship in a new product experiment. Asia Pacific Journal of Marketing and Logistics, 24 (1), 78-101. Inauen, M., Schenker-Wicki, A. (2011). The impact of outside-in open innovation on innovation performance. European Journal of Innovation Management, 14 (4), 496 – 520. Inauen, M., Schenker-Wicki, A. (2012). Fostering radical innovations with open innovation. European Journal of Innovation Management, 15 (2), 212 – 231. Isen, A., Clark, M., Karp, L. (1978). Affect, accessibility of material and behavior: a cognitive loop?. Journal of Personality and Social Psychology, 36, 1-12. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 96 Johannessen, J. A., Olsen, B., Lumpkin, G. T. (2001). Innovation as newness: what is new, how new, and new to whom? European Journal of Innovation Management, 4 (1), 20 – 31. Kahneman, D. (2003). Maps of bounded rationality: psychology for behavioral economics. The American Economic Review, 93 (5), 1449-1475. Kapoor, K. K., Dwivedi, Y. K., Williams, M. D. (2014). Innovation adoption attributes: a review and synthesis of research findings. European Journal of Innovation Management, 17 (3), 327 – 348. Kaye, D. (1995). The importance of information. Library Management, 16 (5), 6 -15. Kekäle, T., Kola-Nyström, S., (2007). Successful innovations from an established company. Business Strategy Series, 8 (2), 109 – 115. Kim, H. W., Chan, H. C. & Chan, Y. P. (2007). A balanced thinking-feeling model of information systems continuance. International Journal of Human-Computer Studies, 65, 511-525. King, S., Slovic, P. (2014). The affect heuristic in early judgment of product innovations. Journal of consumer behavior. Published online in Wiley Online Library (wileyonlinelibrary.com). Kuo, R. Z., Lee, G. G., (2009). KMS adoption: the effects of information quality. Management Decision, 47 (10), 1633 – 1651. Kutvonen, A. (2011). Strategic application of outbound open innovation. European Journal of Innovation Management, 14 (4), 460 – 474. Lakomski, G., Evers, C. V., (2010). Passionate rationalism: the role of emotion in decision making. Journal of Educational Administration, 48 (4), 438 – 450. Lakomski, G., Evers, W. C. (2010). Passionate rationalism: the role of emotion in decision making. Journal of Product & Brand Management, 12 (5), 335-345. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT Law, D., Wong, C., Yip, J., 97 (2012). How does visual merchandising affect consumer affective response? European Journal of Marketing, 46 (1/2), 112-133. Lee, J., Lee, Y., Ryu, Y. & Kang, T. H. (2007). Information quality drivers of kms, international conference on convergence information technology. IEEE Computer Science Societ, 1494-9. Lichtenthaler, U. & Lichtenthaler, E. (2009). A capability based framework for open innovation: complementing absorptive capacity. Journal of Management Studies, 46 (8), 1315-1338. López, M., Sicilia, M. (2013). How WOM marketing contributes to new product adoption. European Journal of Marketing, 47 (7), 1089 – 1114. Lowenstein, G. F., Weber, E. U., Hsee C. K., Welch, N. (2001). Risk as feelings. Psychological Bulletin, 127 (2), 267–286. Manchanda, P., Xie, Y. & Youn, N. (2008). The role of targeted communication and contagion in product adoption. Marketing Science, 27 (6), 961-976. Marin, E. R., Pizzinatto, N. K., Giuliani A. C., (2014). Rational and emotional communication in advertising in women's magazines in Brazil”, Brazilian Business Review, 11(6), 22 – 49. Mattila, A., Wirtz, J. (2000). The role of preconsumption affect in postpurchase evaluation of services. Psychology and Marketing, 17 (7), 587 – 605. Mazaheri, E., Richard, M. O., Laroche, M. (2012). The role of emotions in online consumer behavior: a comparison of search, experience, and credence services. Journal of Services Marketing, 26 (7), 535 – 550. McAdam, R., Reid, R. & Gibson, D. (2004). Innovation and organizational size in Irish SMEs: an empirical study. International Journal of Innovation Management, 8 (2), 147-65. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 98 McCoy, A. P., Badinelli, R., Koebel, C. T., Thabet, W., (2010). Concurrent commercialization and new-product adoption for construction products. European Journal of Innovation Management, 13 (2), 222 – 243. McGrath, K., (2006). Affection not affliction: the role of emotions in information systems and organizational change. Information and Organization, 16 (4), 277-303. McNally, R. C., Cavusgil, E. & Calantone, R. G. (2010). Product innovativeness dimensions and their relationships with product advantage, product financial performance, and project protocol. Journal of Product Innovation Management, 27 (7), 991-1006. Moore, G. C. & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information Systems Research, 2 (3), 192-222. Mutshewa, A., (2007). A theoretical exploration of information behavior: a power perspective. Aslib Proceedings, 59 (3), 249 – 263. Nakata, C., Weidner, K. (2012). Enhancing new product adoption at the base of the pyramid: a contextualized model. Journal of Product Innovation Management, 29 (1), 21–32. Narayanan, S., Manchanda, P. & Chintagunta, P. K. (2005). Temporal differences in the role of marketing communications in new product categories. Journal of Marketing Research, 42 (3), 278-290. Pereira, R. E. (2002). An adopter-centered approach to understanding adoption of innovations. European Journal of Innovation Management, 5 (1), 40 – 49 Pham, M. T., Cohen J. B., Pracejus, J. W., Hughes, D. G., Mick D. G., Baumgartner, H. (2001). Affect monitoring and the primacy of feelings in judgment. Journal of Consumer Research, 28 (2), 167–188. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 99 Plewa, C., Troshani, I., Francis, A., Rampersad, G. (2012). Technology adoption and performance impact in innovation domains. Industrial Management & Data Systems, 112 (5), 748. Ponnam, A., Sreejesh S., Balaji, M. S. (2015). Investigating the effects of product innovation and ingredient branding strategies on brand equity of food products. British Food Journal, 117 (2), 523 – 537. Ranganathan, S., K., Madapu, V., Sen, S., Brooks, J. R. (2013). Affective and cognitive antecedents of customer loyalty towards e-mail service provider. Journal of Service Marketing, 27 (3), 195-206. Reuben, M., Baron R. M. (1986). The moderator – mediators variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51 (6), 1173 – 1182. Robson, A., Robinson, L. (2013). Building on models of information behavior: linking information seeking and communication. Journal of Documentation, 69 (2), 169-193. Rogers, E. M. (2003). Diffusion of Innovations. The Free Press, New York, NY. Rowley, J., Baregheh, A., Sambrook, S. (2011). Towards an innovation-type mapping tool. Management Decision, 49 (1), 73 – 86. Sääksjärvi, M., Morel, K. P. N. (2010). The development of a scale to measure consumer doubt toward new products. European Journal of Innovation Management, 13 (3), 272 – 293. Savolainen, R. (2015). The interplay of affective and cognitive factors in information seeking and use. Journal of Documentation, 71 (1), 175 – 197. Seligman, L. (2006). Sensemaking throughout adoption and the innovation-decision process. European Journal of Innovation Management, 9 (1), 108 – 120. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 100 Sheikhshoaei, F., Oloumi, T. (2011). Applying the technology acceptance model to Iranian engineering faculty libraries. The Electronic Library, 29 (3), 367 – 378. Sheng, X., Zolfagharian, M. (2014). Consumer participation in online product recommendation services: augmenting the technology acceptance model. Journal of Services Marketing, 28 (6). 460 – 470. Shenton, A. K. (2004). Operationalizing the concept of “information” for research into information behavior. Aslib Proceedings, 56 (6), 367-372. Shubhabrata, Basu, (2014). Product market strategies and innovation types: finding the fit! Strategic Direction, 30 (3), 28 – 31. Sirkka, L. J., Wernick, A. (2011). Paradoxical tensions in open innovation networks. European Journal of Innovation Management, 14 (4), 521 – 548. Soo, A., Oo, B. L. (2014). The effect of construction demand on contract auctions: an experiment. Engineering, Construction and Architectural Management, 21 (3), 276 – 290. Szekely, F., Strebel, H. (2013). Incremental, radical and game-changing: strategic innovation for sustainability. Corporate Governance, 13 (5), 467 – 481. Tornatzky, L. G. & Klein, K. J. (1982). Innovation characteristics and innovation adoptionimplementation: a meta-analysis of findings. IEEE Transactions on Engineering Management, 29 (1), 28-43. Townsend, W. (2010). Innovation and the value of failure. International Journal of Management and Marketing Research, 3 (1), 75-84. Vinhas, R., Silva, D., Faridah, S., Alwi, S., (2006). Cognitive, affective attributes and conative, behavioural responses in retail corporate branding. Journal of product and brand management, 15(5), 293-305. Werth, L., Foerster, J. (2007). How regulatory focus influences consumer behavior. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 101 European Journal of Social Psychology, 37, 33 – 51. Williamson, M. (2002). Emotions, reason and behavior: a search for the truth. Journal of Consumer Behavior, 2 (2), 196-202. Wilson, T. D. (1999). Models in information behavior research. Journal of Documentation, 55 (3), 249 – 270. Wilson, T. D. (2000). Human information behavior. Special issue on information science research, University of Sheffield, 3 (2), 49-55. Wood, O., (2012). How emotional tugs trump rational pushes the time has come to abandon a 100-year-old advertising model. Journal of advertising research, 31-39. Wood, O., (2014). Infusing passion (passion) into mainstream advertising: Usingan emotional model to improve the m easurem ent of advertising effectiveness. Journal of Brand strategy, 3 (3), 212 – 234. Wood, S. L., Moreau, C. P. (2006). From fear to loathing? how emotion influences the evaluation and early use of innovations. Journal of Marketing, 70 (3), 44–57. Youn, S. H. (2000). The dimensional structure of consumer buying impulsivity: measurement and validation. Unpublished doctoral dissertation, University of Minnesota, Minneapolis, MN. Zajonc, R.B. (1980). Feeling and thinking: preferences need no inferences. American Psychologist, 35 (2), 151-75. Zhang, J., Duan Y. (2010). The impact of different types of market orientation on product innovation performance. Management Decision, 48 (6), 849 – 867. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 102 Appendices Appendix 1. Print of Ads1cognitive (Product1) Sensor-packed cup can automatically determine what kind of liquid you’ve poured inside it, as well as report the calorie content of whatever you poured. As a result it will help you to manage your weight, stay hydrated, regulate caffeine, curb sugar, build muscle or even for having better sleep by knowing the right time to intake the beverage before the sleep. Cup is synchronized with smartphone app that shows how much and what kind of drinks you have already used during the day. Cup’s design is very stylish and you can choose from different colors. Moreover, it is very comfortable to use, because the shape of it is adapted for holding the cap even with one hand. The cup has the cover, which can be opened with the easy press and make it to be easily used in any place. The cap can easily be washed, because the shape has not any unnecessary trappings. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 103 Appendix 2. Print of Ads2cognitive (Product2) Rockety is a product that combines two functionalities – providing light for a daily commute and extra security for possible situations of a bike theft. Lamp has a single LED light, battery to provide power, dynamo to recharge system, GPS module for tracking features and GSM module to maintain Internet connection. Every Rockety Bike Lamp is synchronized with smartphone app that shows real time position on a map. Application is also used to switch between two modes – Calm (lamp simply tracks your movement with requests once in a minute) and Panic (lamp reacts immediately after bike is moved, sends panic notification to smartphone and tracks location every 3 seconds providing bike movement direction). Appendix 3. Access to the Ads3affective and Ads3cognitive Ads3affective : https://www.youtube.com/watch?v=6kCsztbSLoA Ads3cognitive : https://www.youtube.com/watch?v=jlUu46Y8tWI THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT Appendix 4. Photo of Product3 104 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 105 Appendix 5. Questionnaire constructed on the basis of Fligh et al., (2011) and Batra & Ray (1986) Part 1 questions – attitude toward product useful /useless important /unimportant pleasant/unpleasant nice /awful Part 2 questions - compatibility personal compatibility: 1. this product compliments other products currently owned by the potential adopter 2. this product is in – keeping with potential adopter‘s self image 3. this product fits into potential adopter‘s existing lifestyle or social class social compatability: 1. using this product is socially acceptance 2. adopting this product would be met with approval by friends and family 3. many of my friends would want to own/use this product social advantage: 1. it would be socially prestigious to own/use this product 2. this product has great social reward associated with its use 3. people would be impressed with my use of this product Part 3 questions – relative advantage 1. this product will do what it claims THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 2. this product will perform reliably and consistently 3. i am confident that this product will perform as expexted 4. this product is truly new Part 4 questions – risk and complexity 1. this product does not require a lot of time to learn how to use it 2. is not needed to have special skills to use the product 3. the product does not require high general knowledge about how to use 1. this product contains a new cutting edge technology 2. this product is new to the world or industry 3. this product provides radically new product benefits or features Part 5 questions - innovation judgment I would definitely use/I would definitely not use 106 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 107 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 108 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 109 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 110 Appendix 4. SPSS data multivariate of predictors’ correlations Correlations Attitude Attitude Pearson Correlation Pearson Correlation Compatibili e y ent ,752** ,596** ,231** ,690** ,000 ,000 ,002 ,000 277 277 277 277 277 ,752** 1 ,596** ,320** ,670** ,000 ,000 ,000 1 Sig. (2-tailed) N Relative_advantag Risk_and_complexit Innovation_judgm Compatibility Sig. (2-tailed) ,000 N 277 277 277 277 277 ,596** ,596** 1 -362** ,457** Sig. (2-tailed) ,000 ,000 ,000 ,000 N 277 277 277 277 277 ,231** ,320** ,362** 1 ,243** complexity Sig. (2-tailed) ,002 ,000 ,000 N 271 277 277 277 277 ,690** ,670** ,457** ,243** 1 Sig. (2-tailed) ,000 ,000 ,000 ,001 N 277 277 277 277 ty Relative_a Pearson Correlation dvantage Risk_and_ Pearson Correlation Pearson Correlation Innovation_ judgment **. Correlation is significant at the 0.01 level (2-tailed). ,001 277 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 111 Appendix 5. SPSS multivariate date of the simple model Model Summary Model R ,728a 1 R Square ,530 Adjusted R Std. Error of the Square Estimate ,520 1,328632251 a. Predictors: (Constant), Attitude, Compatibility, Relative_advantage, Risk_and_complexity ANOVAb Model 1 a. Sum of Squares df Mean Square Regression 360,939 4 90,235 Residual 319,513 272 1,765 Total 680,452 276 Predictors: (Constant), Attitude, Compatibility, Relative_advantage, Risk_and_complexity Appendix 6. SPSS multivariate date of coefficients standatization F Sig. 51,117 ,000a THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 112 Appendix 6. SPSS multivariate date of coefficients standatization Correlations Attitude Attitude Pearson Compatibility Relative_advant Risk_and_comple Innovation_judg age xity ment ,752** ,596** ,231** ,690** ,000 ,000 ,002 ,000 277 277 277 277 277 ,752** 1 ,596** ,320** ,670** ,000 ,000 ,000 1 Correlation Sig. (2-tailed) N Pearson Compatibil Correlation Sig. (2-tailed) ,000 N 277 277 277 277 277 ,596** ,596** 1 -362** ,457** Sig. (2-tailed) ,000 ,000 ,000 ,000 N 277 277 277 277 277 ,231** ,320** ,362** 1 ,243** Sig. (2-tailed) ,002 ,000 ,000 N 271 277 277 277 277 ,690** ,670** ,457** ,243** 1 _judgment Sig. (2-tailed) ,000 ,000 ,000 ,001 N 277 277 277 277 ity Relative_a Pearson dvantage Correlation Risk_and_ Pearson complexity Correlation Pearson Innovation ,001 Correlation **. Correlation is significant at the 0.01 level (2-tailed). Appendix 7. SPSS multivariate date of the simple model Model Summary 277 THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT Model R R Square ,728a 1 Adjusted R Std. Error of the Square Estimate ,530 ,520 113 1,328632251 a. Predictors: (Constant), Attitude, Compatibility, Relative_advantage, Risk_and_complexity ANOVAb Model 1 Sum of Squares df Mean Square Regression 360,939 4 90,235 Residual 319,513 272 1,765 Total 680,452 276 F Sig. ,000a 51,117 a. Predictors: (Constant), Attitude, Compatibility, Relative_advantage, Risk_and_complexity b. Dependent Variable: Innovation_judgment Coefficientsa Standardized Unstandardized Coefficients Model 1 B Std. Error (Constant) ,635 ,557 Attitude ,563 ,104 Compatibility ,503 Relative_advantage Risk_and_complexity Coefficients Beta t Sig. 1,969 ,025 ,336 5,406 ,000 ,120 ,243 4,203 ,000 ,310 ,093 ,122 2,473 ,007 ,590 ,081 ,240 4,732 ,000 a. Dependent Variable: Innovation_judgment THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 114 Appendix 8. SPSS multivariate date of coefficients standatization Coefficientsa Standardized Unstandardized Coefficients Model 1 B Coefficients Std. Error (Constant) ,635 ,557 Attitude ,563 ,104 Compatibility ,503 Relative_advantage Risk_and_complexity Beta t 1,969 ,025 ,336 5,406 ,000 ,120 ,243 4,203 ,000 ,310 ,093 ,122 2,473 ,007 ,590 ,081 ,240 4,732 ,000 a. Dependent Variable: Innovation_judgment Appendix 7 SPSS multivariate date of final results of the experiment Model Summary Model 1 R Adjusted R Std. Error of the Square Estimate R Square ,780a ,609 ,570 1,258167414 a. Predictors: (Constant), Affective_or_cognitive_information, Attitude, Interacted_attitude, Compatibility, Interacted_compatibility, Relative_advantage, Interacted_relative_advantage, Risk_and_complexity, Interacted_risk_and_complexity, Compatibility_and_Relative_advantage, Interacted_Compatibility_and_Relative advantage, Compatibility_and_Risk_and_ omplexity, Interacted_Compatibility_and_Risk_and_complexity, Relative advantage_and_Risk_and_complexity, Interacted_Relative_advantage_and_Risk_and_complexity, Compatibility_and_Relative_advantage_and_Risk_and_complexity, Interacted_Compatibility_and_Relative_advantage_and_Risk_and_com plexity Sig. THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 115 ANOVAb Model 1 Sum of Squares df Mean Square Regression 414,510 17 24,383 Residual 265,942 259 1,583 Total 680,452 276 F Sig. 15,403 ,000a a. Predictors: (Constant), Affective_or_cognitive_information, Attitude, Interacted_attitude, Compatibility, Interacted_compatibility, Relative_advantage, Interacted_relative_advantage, Risk_and_complexity, Interacted_risk_and_complexity, Compatibility_and_Relative_advantage, Interacted_Compatibility_and_Relative advantage, Compatibility_and_Risk_and_complexity, Interacted_Compatibility_and_Risk_and_complexity, Relative advantage_and_Risk_and_complexity, Interacted_Relative_advantage_and_Risk_and_complexity, Compatibility_and_Relative_advantage_and_Risk_and_complexity, Interacted_Compatibility_and_Relative_advantage_and_Risk_and_complexity b. Dependent Variable: Innovation_judgment THE EFFECT OF AFFECTIVE VS. COGNITIVE INFORMATION ON PRODUCT INNOVATION JUDGMENT 116 Coefficientsa Model 1 Unstandardized Standardized Coefficients Coefficients B (Constant) Std. Error 0,391 ,017 Affective_or_cognitive_information ,211 ,104 Attitude ,754 Interacted_attitude t Sig. Beta 28,940 ,000 ,110 3,298 ,000 ,158 ,393 4,774 ,000 ,196 ,086 ,085 1,793 ,037 Compatibility ,949 ,172 ,495 5,508 ,000 Interacted_compatibility ,135 ,013 ,065 6,023 ,000 Relative_advantage ,272 ,099 ,135 2,486 ,007 Interacted_relative_advantage ,067 ,014 ,036 2,520 ,006 Risk_and_complexity ,203 ,048 ,106 2,182 ,015 Interacted_risk_and_complexity ,107 ,017 ,034 5,158 ,000 Compatibility_and_Relative_advantage ,382 ,114 ,147 2,997 ,001 Interacted_Compatibility_and_Relative advantage ,076 ,011 ,361 2,593 ,005 Compatibility_and_Risk_and_complexity ,343 ,147 ,216 2,064 ,020 Interacted_Compatibility_and_Risk_and_complexity ,161 ,015 ,105 31,098 ,000 Relative advantage_and_Risk_and_complexity ,341 ,140 ,211 2,440 ,016 Interacted_Relative_advantage_and_Risk_and_co ,061 ,014 ,039 2,437 ,007 ,204 ,091 ,207 2,248 ,026 ,141 ,031 ,073 1,755 ,040 mplexity Compatibility_and_Relative_advantage_and_Risk_ and_complexity Interacted_Compatibility_and_Relative_advantage_ and_Risk_and_complexity a. Dependent Variable: Innovation_judgment
© Copyright 2026 Paperzz