Judging by the volume of marketplace failures, it seems that consumer innovators make biased assessments about the value of the innovativeness of new products (Gourville, 2006; Mugge & Dahl, 2013). Research suggests that consumer evaluate offerings based on form (i.e. visual appeal) and function (i.e. utilitarian appeal) (Gourville, 2006; Talke, Salomo, Weiringa & Lutz, 2009; Mugge & Dahl, 2013). In relation to innovative new products, the consumer decision-making path is unclear and the optimal mix of continuity and discontinuity across form and function is unknown. The lack of information regarding how marketers should appropriate resources to maximise returns thus, is an issue that requires resolution. To help resolve this gap, we seek to address two important practical marketing questions in the context of innovative new product introductions: (Q1) What is the impact that discontinuity and continuity across form and function have on new product adoption, and (Q2) What if any, are the underlying mediating mechanisms for different markets? To address these, we collected data from participants based in the United States of America through an online experiment. The participants were presented with four products, comprising variations of a digital camera based of continuity and discontinuity across form and function. The findings revealed that the same product could lead to differing perception of value based on the participant being an innovator or an adapter. The differing perceptions were explained by differences in assessments of potential costs and benefits from the product. Based on the findings of the study managerial recommendations on targeting the right segment for the right product were offered.

• Tania Bucic(School of Marketing, UNSW Sydney, Australia)
• Obaid Gill(School of Marketing, UNSW Sydney, Australia)
• Liem Ngo(School of Marketing, UNSW Sydney, Australia)