Compensating for Innovation: Extreme Product Incongruity Encourages Consumers to Affirm Unrelated Consumption Schemas

New products are often extremely incongruent with expectations. The inability to make sense of these products elevates anxiety and leads to negative evaluations. Although scholars have predominantly focused on combating the negative response to extreme incongruity, we propose that extreme incongruity may have implications that extend beyond the category. We base our predictions on the concept of fluid compensation, which suggests that when people struggle to make sense of something, they will nonconsciously reinforce highly accessible schemas in unrelated domains. Four studies confirm that extreme incongruity encourages fluid compensation, such that it elevates preference for dominant brands (study 1), green consumption (studies 2 and 4), and ethnocentric products (study 3). We isolate the causal role of anxiety using moderation tasks and biometric feedback. Furthermore, we demonstrate that compensation has an immediate dampening effect on arousal intensity. Thus, if consumers can compensate before explicitly evaluating an extremely incongruent product, their evaluations tend not to be negative. Taken together, we document that extreme innovations encourage compensation, and in compensating, consumers can become more receptive to extreme innovations.