Consumers' Perceptions of Innovation Capacity

Abstract

From the viewpoint of consumers, we assess how well Small and Medium-sized Businesses (SME) perceive their ability for innovation. This work seeks to close the gap in the literature caused by the lack of previous analysis of this topic. A questionnaire survey was utilized for the purposes of quantitative analysis. We performed principal component and confirmation analysis and a logistic regression. It was discovered that customers' perceptions of innovation in the services sectors vary depending on sociodemographic traits, the type of innovation, and the applicability of marketing innovation. Positive impacts were shown to be produced via organisational, marketing, cultural, and process innovation structures. The ability to innovate is influenced by six factors: product, organisational, process, marketing, culture, and resources. Because customers and enterprises have a closer relationship, this strategy is appealing. The results will help some brands reflect on their positioning to show competitive advantages. Customers participated with their perception.