Consumer sophistication as an enhancer of innovation in the food industry: measurement development and validation

Abstract

PurposeRecently, the role of consumers in firms' innovation processes has increased. Prior literature asserts that qualitative aspects of consumers serve as crucial factors shaping the even competitiveness of a specific industry. This study focuses on measuring home demand conditions that enhance local firms' innovation.Design/methodology/approachThe present study describes the development of a 12-item measure to assess consumer sophistication in the food industry. The items assess the general knowledge, experience, skills and abilities needed to purchase a specific food category. A second-order construct with three distinct first-order constructs emerged, which were termed opinion formulation, sensitivity and exposure with variety. The reliability and validity of the scale were assessed with pilot survey data using exploratory and confirmatory factor analyses. The developed measure was tested to investigate its effect on individuals' grocery buying behaviors using grocery receipt panel data from 723 consumers.FindingsThe results indicate that consumer sophistication has a positive effect on new and the variety of grocery purchases. The more sophisticated a consumer is, the more they buy new and a variety of products. The newly developed consumer sophistication measure has a variety of potential applications to predict consumers' variety-seeking and new product purchase behavior.Originality/valueThis study is the first to develop a measure for assessing demand quality, namely, consumer sophistication of a specific food product. This approach may offer insights to practitioners regarding the relevant consumer sophistication levels to target when launching a new product or service in the food industry.