Abstract
This research paper explores the role of consumers’ initial affective response upon exposure to an innovation. While prior diffusion of innovation research has mostly focused on consumers’ rational response to new products; in this study we present a comprehensive model that suggests two independent pathways to consumers’ willingness to pay for an innovation. The first is a rational route and arises from perceived congruity of the innovation with the consumers’ needs and leads to perceived value, lower perceived risk and a willingness to pay in terms of time and effort. The second is an emotional route, which arises from perceived incongruity of the innovation with the idea it replaces in terms of technology. This route, which involves emotional (arousal, positive and negative affect) responses, we suggest will lead to perceptions of risk and a willingness to pay in monetary terms.