| dc.description.abstract | Many companies have built competitiveness and obtained tremendous profits through
new product development. Launching new products and services on the market represents
an important source of increasing the size of a business and the profits of a company
(Alves, et al 2004a). Organizations that regularly innovate new products attract consumer
innovators and other members of the social system to adopt the innovation (Roger, 2003).
The main difference between the response of customers and product perception is that
customer’s perceives the product in own way after purchasing a product at a particular
price or based on previously purchased product. A customer’s likelihood of product
adoption is based on their perception on the value of the product its quality and the level
of satisfaction level from acquiring (Roger, 2003). It is through customer perception that
customers decide as to whether to adopt a new product introduced by a company or not.
Consumer perception involves trying to understand how a consumer’s feeling about a
product or service influences their behavior. Positive perception leads to quick adoption
while negative perception may lead to no adoption at all (Montoya-Weiss and Calantone,
1994).The study adopted a descriptive survey design and targeted all the forty four
registered commercial banks in Kenya. The data was collected using questionnaires using
the drop and pick later method. The questionnaires were then edited, coded and analyzed
using the statistical package for data analysis (Version 20). The study concluded that
there is a positive relationship between the consumer perception and new product
adoption. The study also concluded that the new products of the bank respond well to the
consumer needs and that the products are reliable to the consumer. The study also
concluded that the banks offer assurance, and products and services as per the customers’
needs. The study also concluded that the benefits gotten from the bank products and
services are real. The study also concluded that most of the consumers are willing to try
out the new products. The study also concluded that the banks understand the consumer
behavior and thus develops new products that are relevant, easy to use, and compatible to
the customer. The study also concludes that the banks communicate with the customers
on the new products. The study recommends that the banks conduct customer surveys to
understand the needs of the customers and their behavior. This will be important in
innovating of products that will be easily adopted by the customers since they are
compatible and meet their needs. The study also recommends that the banks develop
products that will be of ease to use and develop different products for its different
clientele. The study also recommends that the bank carries out promotions and
advertisement so as to communicate to its customers the new product developed and
creates awareness for the adoption of the products. | en_US |
