Consumer Evaluation of Digital Device Innovations: Disentangling Effects of Novelty and Familiarity
Authors: Zhang, Nila; Boh, Wai Fong; Lee, Gunwoong
Journal: MIS Quarterly (2026)
<jats:p>As digital devices increasingly integrate hardware and software features, firms must adopt innovation strategies that effectively balance novelty and familiarity to enhance consumer evaluation. While novel hardware components can introduce unique functionalities that attract consumers, excessive novelty may impede consumer acceptance. This study investigates how hardware component innovation strategies must navigate the delicate interplay between novelty and familiarity by examining two critical dimensions: the timing of hardware innovations (early vs. late) and the role of software-supported interaction (with vs. without related software support). By distinguishing between dominant design components familiar to consumers and non-dominant design components that are inherently unfamiliar, we uncover nuanced strategic insights. Our findings reveal that early introduction of dominant design innovations is crucial, and enhancing consumer interactions through software support significantly improves consumer satisfaction. Conversely, for non-dominant component innovations, a later market introduction proves more advantageous. Notably, software-supported interactions are less eff…