An investigation on perceived firm innovativeness: how firms can gain it, and how it affects them

Abstract

Following the recognition of consumer perceptions as an important component of firm success, a growing interest is observed surrounding the topic of perceived firm innovativeness (PFI). Although existing literature recognizes PFI as an important intangible asset for firms, there is an existing knowledge gap in regards to firm communication on PFI, and mapping potential effects of PFI on consumer responses. In aims of filling these gaps, this thesis objective is to first examine how different levels of linguistic abstraction (concrete vs. abstract) can affect PFI. Second, we examine the possible moderating role of firm type (niche vs. mass-market) on the effect of linguistic abstraction on PFI. Our third objective is to measure the effect of PFI on consumer responses, specifically brand credibility and brand attitude. To investigate these effects, we conducted an experiment with manipulations adjusting the linguistic level of abstraction (abstract vs. concrete) in firm message framing. Additionally, we manipulated firm type by adjusting company descriptions in accordance to firm type characteristics (niche vs. mass-market). Our study did not reveal any significant results for the effect of linguistic abstraction on PFI, nor the moderating role of firm type. However, our findings show a significant and positive effect of PFI on both brand credibility and brand attitude.