CULTURAL IMPACT ON INNOVATIONS DIFFUSION ACROSS THE EUROPEAN MARKETS

This paper presents research outcomes focused on the identification of relevant cultural (both normative and informational) factors influencing diffusion of innovations across the European markets. In the introductory chapter we address the current knowledge about modeling product innovations diffusion, with an emphasis on the Bass model, its extensions and parameters as diffusion factors. We analyze a normative mechanism by using cultural dimension of individualism/collectivism. This approach is based on our own previous research outcomes, but also on other current researches and their conclusions. We justify it by using correlation and regression analysis to identify relations between this cultural dimension and individual households' consumption by purpose. To quantify individualism and its variability across the European markets we use our own modifications, extension and integration of well-known approaches. Similar approach is used also for identification and variability quantification of informational mechanism factor, based mostly on the equivalency with Uncertainty Avoidance. The separate analysis of these two diffusion factors is followed by the correlation analysis, identifying the relation between them. Subsequently we use these two factors combination and distribution as the main segmentation basis for the European markets.