Cultural Influences on the Diffusion of New Products

Abstract

In this study we examine cultural influences on the diffusion of new products. In particular we relate the coefficient of innovation and imitation with the Hofstede cultural dimensions for several consumer products using data from 19 countries. The results indicate that the coefficient of innovation is high in countries that are high on individualism, low on uncertainty avoidance, and low on power distance; and that the coefficient of imitation is high in countries that are low on individualism (collectivist) and high on uncertainty avoidance. The results also indicate that the coefficient of innovation is high in high context cultures, and that the coefficient of imitation is high in low context cultures.

Key Words:

• Diffusion of new products
• culture
• power distance
• individualism
• uncertainty avoidance