How does perceived firm innovativeness affect the consumer?

We present a broad-based, consumer-centric view of innovation—referred to as “perceived firm innovativeness” (PFI). PFI is conceptualized as the consumer's perception of an enduring firm capability that results in novel, creative, and impactful ideas and solutions. We develop and validate a PFI scale and show that PFI impacts consumer loyalty via two processing routes: a functional–cognitive route and an affective–experiential route. Our results indicate that a firm needs to consider consumer perceptions of the firm as a whole, and not just new products and technologies, and take into account a functional–cognitive perspective as well as consumer emotions and experiences.