Knowledge that Transforms

Product knowledge has been recognized as an important factor in the research on consumer decision making. It has also been acknowledged that there are different types of knowledge. In this article, we examine the impact of three types of knowledge—subjective knowledge, objective knowledge, and usage experience—on selected aspects of consumer decision making. Effects are examined within the context of an electronic shopping scenario in which subjects selected a VCR brand based on brand and attribute information that could be accessed through a personal computer. Results indicate that, consistent with real‐world experience, the three types of knowledge are correlated with each other. However, their effects on attribute importances, information search, and perceived decision outcomes vary by level and type of knowledge. We discuss these effects and their implications for future research.

Two conceptualizations of innovativeness are operationalized and related to the new product adoption process. Multi‐item scales designed to measure consumer independent judgment making (i.e., the degree to which an individual makes innovation decisions independently of the communicated experience of others) and consumer novelty seeking (i.e., the desire to seek out new product information) are developed and tested on adult consumers. Tests of the hypothesized effects of these traits show that consumer novelty seeking is positively related to early stages of the adoption process (i.e., actualized novelty seeking and new product awareness), whereas consumer independent judgment making is only associated with later stages of the adoption process (i.e., new product trial). The implications of these findings and suggestions for future research are also discussed.

An important management question today is whether the anticipated economic benefits of Information Technology (IT) are being realized. In this paper, we consider this problem to be measurement related, and propose and test a new process-oriented methodology for ex post measurement to audit IT impacts on a strategic business unit (SBU) or profit center's performance. The IT impacts on a given SBU are measured relative to a group of SBUs in the industry. The methodology involves a two-stage analysis of intermediate and higher level output variables that also accounts for industry and economy wide exogenous variables for tracing and measuring IT contributions. The data for testing the proposed model were obtained from SBUs in the manufacturing sector. Our results show significant positive impacts of IT at the intermediate level. The theoretical contribution of the study is a methodology that attempts to circumvent some of the measurement problems in this domain. It also provides a practical management tool to address the question of why (or why not) certain IT impacts occur. Additionally, through its process orientation, the suggested approach highlights key variables that may require managerial attention and subsequent action.