Background: A new buzzword “STEM CELL BANKING” is slowly but continuously engulfing
the consumers’ attention in India. In India, the industry put-together has banked about >70,000
cord blood units over the last three years. This number is set to increase substantially with
increased market reach and awareness; increase in regulatory approvals for stem cells based
products and lowered resistance to private banking will together encourage more clients to
choose stem cell banking.
Problem: Like every new innovation which comes to the market faces strong resistance from
consumer side, Stem cell banking is also facing heat of resistance from Indian consumers. Many
companies (both domestic and international) have started umbilical cord stem cell banking
business, but they have not yet successful towards lowering consumer resistance towards this
service. This banking service is only limited to attract financially robust consumers (but still, not
everyone is enrolling).The other lower sections still need to be tapped to generate more
Purpose: The purpose of this study is to identify and analyze the relationship between
consumers' resistance and different factors from innovation and consumers' characteristics.
Thereafter, important factors are identified that mainly affect/determine consumers' resistance to
stem cell banking. Moreover, the inter-relationship (correlation) among the selected factors is
found out, to know the affects of each factor on other factors.
Method: A theoretical model has been proposed from the hypotheses; and Structural Equation
Modeling has been applied, where results are estimated through Partial Least Square method
using a sample of 100 respondents from Mumbai, B’lore, Gujarat, Tripura (by sending Equestionnaires
and personal discussions). SmartPLS2.0 software has been used to estimate
results along with SPSS 12.0.
Conclusions: Four out of eight hypotheses have been supported by the empirical data, where H1
i.e. relative advantage, H3 i.e. complexity, and H4 i.e. perceived risk, are from innovation
characteristics, while H6 i.e. motivation, is from consumers' characteristics. Motivation,
Complexity, Relative Advantage, and Perceived Risk are found as important factors that
affect/determine consumers' resistance to stem cell banking. Relative Advantage & Motivation
are found as positively correlated, and Perceived Risk & Complexity are found as positively
correlated. Negative correlation has been found between Perceived Risk and Relative advantage.
Similarly, negative correlation has also been found between motivation and complexity. The
proposed model of consumers’ resistance to stem cell banking shows an acceptable goodness of
fit, where 90% (R-square value) of variation in consumers’ resistance is caused/explained by the