How multi-domain innovation influences consumer decisions in retail context: The mediating role of perceived brand resilience and its boundaries

Abstract

Innovation is a critical lever for brand differentiation in the retail sector, yet the psychological mechanisms through which multi-domain innovation shapes consumer responses remain underexplored. Based on resilience theory, this research investigates how retail consumers perceive and react to brands that innovate across multiple domains, drawing on three experimental studies to uncover underlying psychological processes. Results show that multi-domain innovation—compared to single-domain innovation—elicits higher brand preference and stronger purchase intentions in retail settings. This effect is mediated by perceived brand resilience, as consumers infer greater adaptability and robustness from brands that innovate broadly. Furthermore, the strength of this relationship is moderated by key individual and contextual factors: consumer innovativeness, domain expertise, and brand age. Specifically, the positive impact is amplified among consumers high in innovativeness or expertise, but attenuated for older, more established brands. These findings advance the literature on brand psychology by identifying perceived resilience as a central psychological pathway linking multi-domain innovation to consumer decision-making. Practically, the study offers actionable guidance for retail marketers on how to strategically communicate innovation across domains to enhance brand perception and consumer engagement.